Shares of Astronics Corporation (NASDAQ:ATRO) received a significant boost from analysts this week, with Wall Street Zen upgrading the stock from a buy rating to a strong-buy rating. This upgrade follows a series of assessments from various equities analysts, reflecting a growing confidence in the company’s performance and future prospects.
On October 4, 2023, Weiss Ratings reaffirmed a “sell (d-)” rating on Astronics, contrasting with the more positive views from others. Notably, on November 4, Zacks Research elevated its rating from “hold” to “strong-buy,” indicating a strong belief in the company’s potential for growth. Truist Financial also played a crucial role by raising its price target for Astronics from $49.00 to $58.00, classifying the stock as a buy. Meanwhile, Craig Hallum initiated coverage of the stock with a buy rating and set a price objective of $60.00.
The consensus among analysts indicates that one has rated the stock as a strong buy, four have given it a buy rating, and one has issued a sell rating. According to MarketBeat.com, Astronics currently holds an average rating of “Moderate Buy” with a consensus target price of $61.00.
Strong Earnings Report Boosts Investor Confidence
The positive sentiment surrounding Astronics follows the company’s latest earnings announcement on November 4, where it reported earnings per share (EPS) of $0.49 for the quarter. This figure exceeded the consensus estimate of $0.42 by $0.07. The firm’s revenue for the quarter reached $211.45 million, surpassing analyst expectations of $210.80 million. Notably, Astronics reported a return on equity of 22.89%, though it also noted a slight negative net margin of 0.45%.
Looking ahead, the company has set its guidance for fiscal year 2025 at an undisclosed EPS target, while analysts predict an average of $0.82 EPS for the current year.
Insider Transactions and Institutional Holdings
In related developments, insider James Mulato sold 1,129 shares of Astronics on September 5, 2023, at an average price of $38.16, totaling approximately $43,082.64. Following this transaction, Mulato’s holdings decreased by 51.44%, leaving him with 1,066 shares valued at around $40,678.56. This transaction was disclosed in a filing with the Securities and Exchange Commission, available on the SEC website. Company insiders collectively own 9.39% of Astronics’ stock.
Recent activity from hedge funds also indicates a growing interest in the company. Brighton Jones LLC has increased its stake by 3.1% in the third quarter, now holding 7,085 shares valued at $323,000. Covestor Ltd boosted its stake by 25.4%, acquiring an additional 216 shares, bringing its total to 1,068 shares valued at $49,000. Further, US Bancorp DE expanded its position by 41.0%, owning 966 shares valued at $44,000 after acquiring an additional 281 shares during the last quarter.
Overall, institutional investors now hold approximately 56.68% of Astronics’ stock, highlighting significant confidence in the company’s long-term viability.
Astronics Corporation operates in the aerospace, defense, and electronics sectors, offering a range of products, including lighting systems, electrical power generation, and avionics products. With a growing reputation and positive analyst ratings, the company seems well-positioned for future growth in a competitive industry.
