Astronics Corporation (NASDAQ: ATRO) has been upgraded from a buy rating to a strong-buy rating by Wall Street Zen, following the release of its latest earnings report. This upgrade, communicated to investors on November 4, 2023, reflects the company’s robust financial performance, which beat analysts’ expectations. The aerospace company has garnered attention from several other equity analysts recently, indicating an overall positive sentiment in the market.
Analysts’ Ratings and Market Response
In addition to Wall Street Zen’s recent upgrade, Zacks Research raised its rating for Astronics from hold to strong-buy on the same day. This shift highlights a growing confidence among analysts in the company’s potential for growth. Conversely, Weiss Ratings maintained a sell rating, assigning a “sell (d-)” on October 8, 2023, illustrating the mixed opinions within the investment community.
Truist Financial increased its price target for Astronics from $49.00 to $58.00, while assigning a buy rating on October 15, 2023. Furthermore, Craig Hallum initiated coverage of Astronics with a buy rating and a price objective of $60.00 on October 10, 2023. Currently, the stock holds an average rating of “Moderate Buy” with a consensus target price of $61.00, according to MarketBeat.com.
Financial Performance and Insider Activity
Astronics reported earnings of $0.49 per share for the quarter ended November 4, 2023, surpassing the consensus estimate of $0.42 by $0.07. The company generated revenue of $211.45 million, slightly exceeding analyst expectations of $210.80 million. Despite these positive results, Astronics recorded a negative net margin of 0.45%, although it achieved a return on equity of 22.89%.
In related news, insider James Mulato sold 1,129 shares of the company on September 5, 2023, at an average price of $38.16, amounting to a total value of $43,082.64. Following this transaction, Mulato retained 1,066 shares valued at approximately $40,678.56, marking a significant decrease of 51.44% in his holdings. This transaction was disclosed to the Securities & Exchange Commission, accessible via their official website.
Insider ownership currently stands at 9.39% of the company’s stock, indicating a notable level of investment from those within the organization.
Institutional Investments and Market Trends
Institutional investors have also shown increased interest in Astronics. Brighton Jones LLC raised its stake by 3.1% during the third quarter, now holding 7,085 shares valued at $323,000 after acquiring an additional 216 shares. Covestor Ltd boosted its position by 25.4%, bringing its total holdings to 1,068 shares valued at $49,000.
US Bancorp DE reported a 41.0% increase in its stake, owning 966 shares valued at $44,000. Moreover, Ameritas Investment Partners Inc. raised its stake by 13.6% in the second quarter, now holding 3,091 shares worth $103,000. Finally, WINTON GROUP Ltd increased its holdings by 4.6%, owning 8,644 shares valued at $394,000 after acquiring an additional 383 shares. Overall, institutional investors control 56.68% of Astronics’ stock, reflecting strong institutional confidence in the company’s future prospects.
Astronics Corporation specializes in designing and manufacturing products for the aerospace, defense, and electronics industries globally, with operations spanning North America, Asia, Europe, and South America. The company is divided into two segments: Aerospace and Test Systems, providing a wide range of products including lighting and safety systems, electrical power generation systems, and avionics products.
The latest developments surrounding Astronics have positioned the company as a notable player in the aerospace sector, attracting the attention of both analysts and institutional investors. As the market continues to respond positively to its financials, Astronics appears poised for further growth in the coming quarters.
