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

CTS Co. (NYSE:CTS) 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 EPS 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%.

CTS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Friday, December 27th were paid a dividend of $0.04 per share. The ex-dividend date of this dividend was Friday, December 27th. This represents a $0.16 annualized dividend and a yield of 0.34%. CTS’s dividend payout ratio (DPR) is presently 8.25%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CTS. Scotiabank downgraded shares of CTS from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 25th. StockNews.com raised shares of CTS from a “hold” rating to a “buy” rating in a research note on Saturday.

Insider Activity

In other news, CEO Kieran M. O’sullivan sold 31,978 shares of the company’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $55.81, for a total value of $1,784,692.18. Following the transaction, the chief executive officer now owns 423,665 shares of the company’s stock, valued at $23,644,743.65. This represents a 7.02 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last quarter, insiders have sold 59,956 shares of company stock valued at $3,331,185. 2.30% of the stock is currently owned by insiders.

Institutional Trading of CTS

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of New York Mellon Corp boosted its stake in CTS by 1.1% during the fourth quarter. Bank of New York Mellon Corp now owns 282,737 shares of the electronics maker’s stock worth $14,909,000 after buying an additional 3,115 shares during the period. Handelsbanken Fonder AB boosted its position in shares of CTS by 7.0% during the 4th quarter. Handelsbanken Fonder AB now owns 7,685 shares of the electronics maker’s stock worth $405,000 after purchasing an additional 500 shares during the period. Atria Wealth Solutions Inc. acquired a new stake in CTS in the 4th quarter valued at approximately $214,000. Principal Financial Group Inc. raised its position in CTS by 2.7% in the fourth quarter. Principal Financial Group Inc. now owns 155,018 shares of the electronics maker’s stock valued at $8,174,000 after purchasing an additional 4,004 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its stake in CTS by 252.5% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 65,174 shares of the electronics maker’s stock worth $3,437,000 after purchasing an additional 46,686 shares in the last quarter. 96.87% of the stock is owned by institutional investors and hedge funds.

CTS Stock Performance

The company has a quick ratio of 1.91, a current ratio of 2.46 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $1.42 billion, a PE ratio of 24.27 and a beta of 0.59. The firm has a 50-day moving average price of $52.94 and a 200 day moving average price of $50.58.

CTS Company Profile

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.