Zacks Investment Research Downgrades CTS (NYSE:CTS) to Sell

CTS (NYSE:CTS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday, Zacks.com reports.

According to Zacks, “CTS Corporation is a leading designer and manufacturer of products that Sense, Connect and Move. CTS manufactures sensors, actuators and electronic components and supplies these products to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets. CTS focus on providing advanced technology, exceptional customer service and superior value to industry partners throughout the globe. CTS aims to be at the forefront of technology, delivering innovative sensing, connectivity and motion solutions for the creation and advancement of products and services around the world. CTS Corporation engages in the design, manufacture, assembly, and sale of electronic components and sensors, as well as the provision of electronics manufacturing services worldwide. It operates in two segments, Electronics Manufacturing Services, and Components and Sensors. “

Separately, ValuEngine lowered shares of CTS from a “hold” rating to a “sell” rating in a research report on Thursday, September 3rd. Two research analysts have rated the stock with a sell rating, one has given a hold rating and one has assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $29.00.

NYSE:CTS traded up $0.49 during midday trading on Wednesday, reaching $21.94. The stock had a trading volume of 277,671 shares, compared to its average volume of 153,471. The firm has a fifty day simple moving average of $21.19 and a two-hundred day simple moving average of $21.37. CTS has a 12-month low of $17.92 and a 12-month high of $34.29. The company has a quick ratio of 2.84, a current ratio of 3.40 and a debt-to-equity ratio of 0.35. The stock has a market cap of $707.96 million, a P/E ratio of 33.24 and a beta of 0.84.

CTS (NYSE:CTS) last posted its quarterly earnings data on Friday, July 31st. The electronics maker reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. CTS had a net margin of 5.13% and a return on equity of 8.25%. The firm had revenue of $84.20 million for the quarter, compared to analyst estimates of $88.93 million. During the same period last year, the firm posted $0.40 EPS. CTS’s quarterly revenue was down 30.2% on a year-over-year basis. On average, sell-side analysts anticipate that CTS will post 0.8 earnings per share for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC lifted its holdings in CTS by 816.9% in the first quarter. Tower Research Capital LLC TRC now owns 1,467 shares of the electronics maker’s stock valued at $37,000 after acquiring an additional 1,307 shares during the period. Point72 Hong Kong Ltd acquired a new position in shares of CTS during the 2nd quarter worth $48,000. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of CTS by 212.1% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,695 shares of the electronics maker’s stock worth $114,000 after buying an additional 3,870 shares during the last quarter. Russell Investments Group Ltd. raised its stake in shares of CTS by 220.4% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,753 shares of the electronics maker’s stock worth $155,000 after buying an additional 5,333 shares during the last quarter. Finally, IndexIQ Advisors LLC acquired a new position in shares of CTS during the 1st quarter worth $188,000. 92.61% of the stock is owned by institutional investors.

About CTS

CTS Corporation designs, manufactures, and sells a range of sensors, electronic components, and actuators primarily to original equipment manufacturers for the aerospace and defense, industrial, information technology, medical, telecommunications, and transportation markets. It offers sensors and actuators for use in passenger or consumer vehicles; electronic components for use in telecommunications infrastructure, information technology and other high-speed applications, switches, and potentiometers supplied to various markets; and fabricated piezoelectric materials and substrates used primarily in medical, industrial, aerospace and defense, and information technology markets.

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