Investors received encouraging news as Wall Street Zen upgraded shares of Astronics Corporation (NASDAQ: ATRO) from a buy rating to a strong-buy rating on October 4, 2023. This change reflects a growing confidence in the company’s financial performance and market position. Analysts’ sentiments vary, with some cautioning against investment while others highlight potential growth opportunities.
Several equities analysts have recently provided insights on Astronics. Notably, Weiss Ratings maintained a “sell (D-)” rating in a report released on October 8, 2023. In contrast, Zacks Research elevated its stance from “hold” to “strong-buy” on November 4, 2023. Additionally, Truist Financial raised its price target for Astronics from $49.00 to $58.00 while issuing a “buy” rating on October 15, 2023. Craig Hallum also began coverage on the stock on October 10, 2023, assigning a “buy” rating with a price objective of $60.00.
Currently, one analyst has rated Astronics with a strong buy, four have issued a buy rating, and one has recommended selling the stock. According to data from MarketBeat.com, Astronics holds an average rating of “Moderate Buy” with a consensus target price of $61.00.
Strong Financial Results Boost Stock Performance
On November 4, 2023, Astronics reported its earnings for the quarter, posting earnings per share (EPS) of $0.49. This figure surpassed expectations, beating the consensus estimate of $0.42 by $0.07. The company also generated revenue of $211.45 million, slightly exceeding analyst estimates of $210.80 million.
These results reflect a positive return on equity of 22.89%, although the company reported a negative net margin of 0.45%. Looking ahead, Astronics has set its earnings guidance for the fiscal year ending in 2025 at an anticipated EPS of $0.82.
Insider Transactions and Institutional Interest
In related news, James Mulato, an insider at Astronics, sold 1,129 shares on September 5, 2023. The shares were sold at an average price of $38.16, totaling approximately $43,082.64. Following the sale, Mulato held 1,066 shares, valued at around $40,678.56, indicating a significant reduction of 51.44% in his position. This transaction was disclosed in filings with the Securities and Exchange Commission.
Institutional investors currently hold 56.68% of Astronics’ stock. Recent activity from hedge funds reflects increasing interest. For instance, Brighton Jones LLC boosted its stake by 3.1% during the third quarter, now owning 7,085 shares valued at $323,000. Covestor Ltd increased its holdings by 25.4%, acquiring additional shares to reach a total of 1,068 shares, worth approximately $49,000.
Other firms, including US Bancorp DE and Ameritas Investment Partners Inc., also expanded their positions in Astronics during the recent quarters. These developments reflect a broader interest in the aerospace sector, where Astronics operates through its Aerospace and Test Systems segments, designing and manufacturing products for various industries worldwide.
As the market continues to react to Astronics’ financial performance and analysts’ ratings, stakeholders will be watching closely to see how the company’s strategies unfold in the coming months.
