Astronics Corporation (NASDAQ: ATRO) received an upgrade from Wall Street Zen, moving its rating from “buy” to “strong-buy” in a research report released on November 4, 2023. This positive shift in sentiment follows the company’s recent earnings report, which surpassed analyst expectations, contributing to a wave of renewed interest from investors and analysts alike.
Analyst Ratings Reflect Mixed Sentiment
In addition to Wall Street Zen’s upgrade, several other analysts have provided their assessments of Astronics. Weiss Ratings maintained a “sell (d-)” rating on the company on October 8, 2023, while Zacks Research elevated its rating from “hold” to “strong-buy” on the same day as the earnings report.
Truist Financial also increased its price target for Astronics from $49.00 to $58.00, affirming a “buy” rating. Meanwhile, Craig Hallum initiated coverage with a “buy” rating and a price objective of $60.00. Overall, one analyst has assigned a “strong buy” rating, four have issued a “buy” rating, and one has given a “sell” rating. According to MarketBeat.com, the stock currently holds an average rating of “moderate buy,” with a consensus target price of $61.00.
Positive Earnings Report Boosts Stock Performance
Astronics reported earnings of $0.49 per share for the third quarter, exceeding the consensus estimate of $0.42 by $0.07. The company’s revenue reached $211.45 million, slightly above the projected $210.80 million. Notably, Astronics achieved a return on equity of 22.89%, although it reported a negative net margin of 0.45%.
Looking ahead, the company has set guidance for fiscal year 2025, forecasting earnings per share (EPS) of $0.82, according to sell-side analysts. This forward-looking optimism reflects confidence in the company’s operational trajectory following the strong quarterly results.
Insider Transactions and Institutional Interest
In related news, insider James Mulato sold 1,129 shares of Astronics on September 5, 2023, at an average price of $38.16, for a total of $43,082.64. Following this transaction, Mulato retained 1,066 shares valued at approximately $40,678.56, marking a 51.44% decrease in his position. This sale was documented in a filing with the Securities and Exchange Commission (SEC).
Institutional investors hold a significant stake in Astronics, with 56.68% of shares owned by hedge funds. Recent activity includes Brighton Jones LLC increasing its stake by 3.1% in the third quarter, while Covestor Ltd boosted its holdings by 25.4%. US Bancorp DE and Ameritas Investment Partners Inc. also expanded their positions, demonstrating growing institutional interest in the company.
Astronics’ Business Overview
Astronics Corporation specializes in designing and manufacturing products for the aerospace, defense, and electronics industries. The company operates in two primary segments: Aerospace and Test Systems. The Aerospace division offers a range of products, including lighting and safety systems, electrical power generation systems, and avionics solutions. With a broad international presence across North America, Asia, Europe, and South America, Astronics continues to play a pivotal role in the aerospace sector.
As the company navigates the evolving market landscape, the recent upgrades and positive earnings report may signal a robust period ahead for Astronics, attracting further investor interest.
