Strattec Security (NASDAQ:STRT) Downgraded by Wall Street Zen to Buy

Key Points

• Wall Street Zen downgraded Strattec Security from strong-buy to buy, adding to a series of softer analyst views that now give the stock a consensus Hold rating.
• The company recently missed earnings expectations for its fiscal quarter, reporting $0.90 EPS versus the $1.14 estimate, while revenue also came in slightly below forecasts at $137.63 million.
• Strattec shares opened at $62.45, well below the stock’s 52-week high of $92.50, though the company still has a market cap of about $261 million and institutional investors own 68.91% of shares.

Strattec Security (NASDAQ:STRT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday.

STRT has been the topic of a number of other research reports. Freedom Capital downgraded Strattec Security from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 11th. Zacks Research downgraded Strattec Security from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 10th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Strattec Security in a report on Friday, March 27th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Strattec Security currently has a consensus rating of "Hold".

Strattec Security Price Performance

Shares of NASDAQ:STRT opened at $62.45 on Friday. The company has a market capitalization of $261.04 million, a P/E ratio of 10.31, a P/E/G ratio of 1.19 and a beta of 1.17. Strattec Security has a 1 year low of $37.50 and a 1 year high of $92.50. The business's 50 day simple moving average is $78.92 and its 200 day simple moving average is $77.87.

Strattec Security (NASDAQ:STRT - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The auto parts company reported $0.90 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.14 by ($0.24). The company had revenue of $137.63 million for the quarter, compared to analyst estimates of $140.35 million. Strattec Security had a return on equity of 11.13% and a net margin of 4.31%. On average, sell-side analysts anticipate that Strattec Security will post 6.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Strattec Security

A number of large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP boosted its holdings in shares of Strattec Security by 3.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 248,136 shares of the auto parts company's stock valued at $19,438,000 after acquiring an additional 8,542 shares in the last quarter. Vanguard Group Inc. boosted its holdings in shares of Strattec Security by 2.3% during the 3rd quarter. Vanguard Group Inc. now owns 238,937 shares of the auto parts company's stock valued at $16,262,000 after acquiring an additional 5,280 shares in the last quarter. Gabelli Funds LLC boosted its holdings in shares of Strattec Security by 26.6% during the 4th quarter. Gabelli Funds LLC now owns 174,900 shares of the auto parts company's stock valued at $13,317,000 after acquiring an additional 36,800 shares in the last quarter. Millennium Management LLC boosted its holdings in shares of Strattec Security by 117.3% during the 3rd quarter. Millennium Management LLC now owns 112,312 shares of the auto parts company's stock valued at $7,644,000 after acquiring an additional 60,628 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Strattec Security by 7.0% during the 4th quarter. Geode Capital Management LLC now owns 97,246 shares of the auto parts company's stock valued at $7,406,000 after acquiring an additional 6,403 shares in the last quarter. Institutional investors and hedge funds own 68.91% of the company's stock.

Strattec Security Company Profile

Strattec Security Corporation is a Wisconsin‐based designer and manufacturer of mechanical and electronic locking systems for the global automotive market. Established more than five decades ago, the company supplies original equipment manufacturers (OEMs) and the aftermarket with a broad portfolio of lock and key solutions tailored to passenger cars, light trucks and commercial vehicles.

The company's product range includes mechanical locking systems such as door lock cylinders, ignition lock modules, key blanks and door handles, as well as electromechanical and keyless‐entry systems.

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