Strattec Security (NASDAQ:STRT) Shares Cross Above 200 Day Moving Average - Here's What Happened

Key Points

• Strattec Security shares moved above their 200-day moving average on Thursday, trading as high as $80.12 and last changing hands at $79.71, up about 1.9% on the day.
• Analyst sentiment is mixed, with recent downgrades from Wall Street Zen and Zacks Research offset by upgrades from Freedom Capital and a reaffirmed buy rating from Weiss Ratings; MarketBeat shows an average rating of Moderate Buy.
• The company also announced a $40 million share repurchase program, while insiders such as the CFO and CEO recently bought shares, signaling some confidence in the stock despite its mixed earnings backdrop.

Strattec Security Corporation (NASDAQ:STRT - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $78.51 and traded as high as $80.12. Strattec Security shares last traded at $79.71, with a volume of 69,818 shares trading hands.

Analysts Set New Price Targets

Several research analysts have issued reports on STRT shares. Wall Street Zen cut shares of Strattec Security from a "buy" rating to a "hold" rating in a report on Sunday, May 17th. Zacks Research downgraded shares of Strattec Security from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Strattec Security in a research report on Friday, March 27th. Finally, Freedom Capital upgraded Strattec Security from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy".

Strattec Security Stock Up 1.9%

The company's fifty day moving average is $75.31 and its 200-day moving average is $78.51. The company has a market cap of $333.11 million, a PE ratio of 13.15, a PEG ratio of 1.28 and a beta of 1.17.

Strattec Security (NASDAQ:STRT - Get Free Report) last announced its earnings results on Thursday, May 7th. The auto parts company reported $0.90 earnings per share 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 analysts' expectations of $140.35 million. Strattec Security had a net margin of 4.31% and a return on equity of 11.00%. Equities research analysts expect that Strattec Security Corporation will post 6.12 EPS for the current fiscal year.

Strattec Security announced that its board 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 reacquire up to 12.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Strattec Security

In other news, CFO Matthew Pauli bought 2,000 shares of the company's stock in a transaction on 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 completion of the transaction, the chief financial officer owned 2,000 shares of the company's stock, valued at approximately $125,060. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Jennifer Lynn Slater purchased 801 shares of the business's stock in a transaction on Wednesday, May 13th. The shares were purchased at an average price of $62.46 per share, with a total value of $50,030.46. Following the completion of the purchase, the chief executive officer owned 57,924 shares in the company, valued at approximately $3,617,933.04. This trade represents a 1.40% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have bought 4,598 shares of company stock valued at $286,440. 3.90% of the stock is owned by company insiders.

Institutional Trading of Strattec Security

Several large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE raised its position in Strattec Security by 137.9% in the fourth quarter. Bank of America Corp DE now owns 2,208 shares of the auto parts company's stock worth $91,000 after acquiring an additional 1,280 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Strattec Security by 41.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 22,548 shares of the auto parts company's stock worth $890,000 after acquiring an additional 6,624 shares during the last quarter. Empowered Funds LLC grew its position in shares of Strattec Security by 3.3% during the 1st quarter. Empowered Funds LLC now owns 17,221 shares of the auto parts company's stock valued at $680,000 after acquiring an additional 555 shares during the period. Jane Street Group LLC increased its stake in shares of Strattec Security by 61.1% in the 1st quarter. Jane Street Group LLC now owns 15,869 shares of the auto parts company's stock worth $626,000 after purchasing an additional 6,019 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Strattec Security by 110.2% in the 2nd quarter. Geode Capital Management LLC now owns 90,389 shares of the auto parts company's stock worth $5,624,000 after purchasing an additional 47,389 shares in the last quarter. 68.91% of the stock is currently owned by institutional investors.

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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