CTS (NYSE:CTS) Shares Gap Down Following Weak Earnings

CTS Co. (NYSE:CTS)’s stock price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $49.27, but opened at $45.84. CTS shares last traded at $47.86, with a volume of 14,333 shares changing hands.

The electronics maker reported $0.53 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.06). CTS had a return on equity of 12.39% and a net margin of 11.66%.

Analyst Ratings Changes

A number of equities analysts have weighed in on CTS shares. Scotiabank lowered CTS from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 25th. StockNews.com upgraded CTS from a “hold” rating to a “buy” rating in a research note on Saturday, February 1st.

Insider Activity at CTS

In related news, CEO Kieran M. O’sullivan sold 12,794 shares of the company’s stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $55.50, for a total value of $710,067.00. Following the completion of the sale, the chief executive officer now directly owns 400,456 shares of the company’s stock, valued at $22,225,308. This represents a 3.10 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold a total of 59,956 shares of company stock valued at $3,331,185 over the last 90 days. 2.30% of the stock is owned by corporate insiders.

Institutional Trading of CTS

Hedge funds have recently modified their holdings of the company. GAMMA Investing LLC raised its holdings in shares of CTS by 132.5% in the third quarter. GAMMA Investing LLC now owns 586 shares of the electronics maker’s stock worth $28,000 after buying an additional 334 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of CTS by 608.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 737 shares of the electronics maker’s stock valued at $39,000 after purchasing an additional 633 shares in the last quarter. KBC Group NV raised its position in shares of CTS by 58.2% in the fourth quarter. KBC Group NV now owns 1,713 shares of the electronics maker’s stock worth $90,000 after acquiring an additional 630 shares during the period. Quest Partners LLC purchased a new position in CTS during the third quarter worth approximately $92,000. Finally, Atria Wealth Solutions Inc. purchased a new position in shares of CTS during the 4th quarter valued at approximately $214,000. 96.87% of the stock is owned by hedge funds and other institutional investors.

CTS Stock Performance

The company has a current ratio of 2.46, a quick ratio of 1.91 and a debt-to-equity ratio of 0.19. The company has a market cap of $1.44 billion, a PE ratio of 24.69 and a beta of 0.59. The firm’s fifty day moving average is $52.94 and its 200 day moving average is $50.58.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals.