CTS (NYSE:CTS) Shares Gap Down After Earnings Miss

Shares of CTS Co. (NYSE:CTS) gapped down prior to trading 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 (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 Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Friday, December 27th were issued a dividend of $0.04 per share. The ex-dividend date was Friday, December 27th. This represents a $0.16 annualized dividend and a yield of 0.33%. CTS’s payout ratio is 8.25%.

Analysts Set New Price Targets

Several research analysts have issued reports on CTS shares. StockNews.com upgraded shares of CTS from a “hold” rating to a “buy” rating in a report on Saturday. Scotiabank lowered shares of CTS from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 25th.

Insider Buying and Selling at CTS

In related news, CEO Kieran M. O’sullivan sold 12,794 shares of the business’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 transaction, the chief executive officer now directly owns 400,456 shares of the company’s stock, valued at approximately $22,225,308. The trade was a 3.10 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last 90 days, insiders sold 59,956 shares of company stock worth $3,331,185. 2.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CTS

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. B. Metzler seel. Sohn & Co. Holding AG bought a new stake in CTS in the 3rd quarter valued at about $1,890,000. Geode Capital Management LLC raised its stake in CTS by 4.3% in the 3rd quarter. Geode Capital Management LLC now owns 806,180 shares of the electronics maker’s stock valued at $39,010,000 after acquiring an additional 33,449 shares during the period. Royce & Associates LP raised its stake in CTS by 5.4% in the 3rd quarter. Royce & Associates LP now owns 294,513 shares of the electronics maker’s stock valued at $14,249,000 after acquiring an additional 15,062 shares during the period. Intech Investment Management LLC bought a new stake in CTS in the 3rd quarter valued at about $1,719,000. Finally, Versor Investments LP bought a new stake in CTS in the 3rd quarter valued at about $518,000. 96.87% of the stock is currently owned by institutional investors.

CTS Stock Down 2.9 %

The stock has a 50 day moving average of $53.21 and a 200-day moving average of $50.65. The firm has a market capitalization of $1.44 billion, a P/E ratio of 24.66 and a beta of 0.59. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.91 and a current ratio of 2.46.

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.