Strattec Security (NASDAQ:STRT) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Strattec Security shares rose above their 200-day moving average, trading as high as $83.31 and last changing hands at $83.30. The stock was up 3.2% on the session.
• Analyst sentiment is mixed but generally positive, with recent upgrades from Freedom Capital and Weiss Ratings offset by downgrades from Zacks Research and Wall Street Zen. MarketBeat says the stock currently has an average rating of Buy.
• The company repurchased shares and saw insider buying, as its board approved a $40 million buyback plan and directors/CFO bought stock in May. Insiders have purchased 4,598 shares over the last 90 days, while institutional investors still own about 68.91% of the company.

Shares of Strattec Security Corporation (NASDAQ:STRT - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $79.10 and traded as high as $83.31. Strattec Security shares last traded at $83.30, with a volume of 86,979 shares traded.

Analyst Ratings Changes

Several equities analysts recently weighed in on STRT shares. Freedom Capital upgraded Strattec Security from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 11th. Weiss Ratings reissued a "buy (b)" rating on shares of Strattec Security in a report on Wednesday, June 24th. Zacks Research upgraded Strattec Security from a "strong sell" rating to a "hold" rating in a research report on Friday, July 10th. Finally, Wall Street Zen downgraded Strattec Security from a "buy" rating to a "hold" rating in a research note on Sunday, May 17th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Buy".

Strattec Security Stock Up 3.2%

The firm has a market cap of $348.19 million, a price-to-earnings ratio of 13.75, a price-to-earnings-growth ratio of 1.66 and a beta of 1.18. The company's 50-day moving average price is $76.04 and its 200-day moving average price is $79.10.

Strattec Security (NASDAQ:STRT - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The auto parts company reported $0.90 earnings per share for the quarter, missing the consensus estimate of $1.14 by ($0.24). Strattec Security had a return on equity of 11.00% and a net margin of 4.31%.The company had revenue of $137.63 million for the quarter, compared to analyst estimates of $140.35 million. Analysts predict that Strattec Security Corporation will post 6.12 earnings per share for the current fiscal year.

Strattec Security declared that its Board of Directors has approved a share repurchase plan on Thursday, May 28th that permits the company to buyback $40.00 million in shares. This buyback authorization permits the auto parts company to buy up to 12.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Strattec Security

In other news, Director Frederic Jack Liebau, Jr. acquired 1,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were bought at an average price of $61.37 per share, for a total transaction of $61,370.00. Following the acquisition, the director owned 7,748 shares of the company's stock, valued at approximately $475,494.76. This trade represents a 14.82% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Matthew Pauli bought 2,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were acquired at an average cost of $62.53 per share, with a total value of $125,060.00. Following the acquisition, the chief financial officer directly owned 2,000 shares of the company's stock, valued at approximately $125,060. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 4,598 shares of company stock valued at $286,440 over the last ninety days. Insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On Strattec Security

A number of institutional investors and hedge funds have recently bought and sold shares of the business. WINTON GROUP Ltd raised its stake in Strattec Security by 1.1% during the fourth quarter. WINTON GROUP Ltd now owns 11,507 shares of the auto parts company's stock worth $876,000 after purchasing an additional 122 shares during the period. Deutsche Bank AG grew its stake in shares of Strattec Security by 6.3% in the 4th quarter. Deutsche Bank AG now owns 2,907 shares of the auto parts company's stock valued at $221,000 after buying an additional 172 shares during the period. Bailard Inc. increased its holdings in shares of Strattec Security by 5.0% during the 4th quarter. Bailard Inc. now owns 4,200 shares of the auto parts company's stock worth $320,000 after buying an additional 200 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Strattec Security by 3.8% during the 3rd quarter. NewEdge Advisors LLC now owns 5,652 shares of the auto parts company's stock valued at $385,000 after buying an additional 207 shares during the period. Finally, New York State Teachers Retirement System purchased a new stake in shares of Strattec Security during the 4th quarter valued at approximately $27,000. 68.91% of the stock is currently owned by institutional investors and hedge funds.

About Strattec Security

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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