Shares of Cooper-Standard (NYSE:CPS) have been downgraded from a “strong-buy” to a “strong sell” rating by Zacks Research, as reported in a research note released on Tuesday, October 31, 2023. This adjustment reflects ongoing concerns regarding the company’s financial performance and market outlook.
Recent Analyst Reports
Prior to Zacks’ downgrade, Cooper-Standard had been the subject of multiple analyses. On October 8, Weiss Ratings reaffirmed a “hold (c)” rating on the stock. In contrast, Stifel Nicolaus increased its price target from $39.00 to $41.00 while maintaining a “buy” rating in a report dated October 20. Additionally, Wall Street Zen revised its rating from “strong-buy” to “buy” on November 1.
Currently, one equity research analyst has rated Cooper-Standard with a “buy” rating, two have assigned a “hold” rating, and one has issued a “sell” rating. According to MarketBeat, the stock holds an average rating of “hold” with an average target price of $26.50.
Quarterly Earnings Underperform
Cooper-Standard’s financial troubles were highlighted in its most recent earnings report, released on October 30. The company reported a loss of ($0.24) earnings per share (EPS) for the quarter, falling short of analysts’ expectations of $0.50 by ($0.74). Revenue totaled $695.50 million, which also missed the consensus estimate of $698.83 million.
Looking ahead, Cooper-Standard has set its guidance for the fiscal year 2025, but specific EPS targets have not yet been disclosed.
Institutional Trading Activity
Recent movements in institutional trading have further complicated the picture for Cooper-Standard. Geneos Wealth Management Inc. increased its holdings in the company by 60.8% during the second quarter, now owning 1,804 shares valued at approximately $39,000. The State of Alaska Department of Revenue also acquired a new stake in the third quarter, valued at about $30,000.
Harbor Capital Advisors Inc. raised its position by 43.9% in the same quarter, now holding 3,827 shares worth $141,000. Meanwhile, Geode Capital Management LLC increased its stake by 0.3%, ultimately owning 404,667 shares valued at $8,702,000.
Finally, Tower Research Capital LLC significantly boosted its position by 136.5%, acquiring an additional 1,432 shares to reach a total of 2,481 shares worth $53,000. As it stands, institutional investors collectively own 69.11% of Cooper-Standard’s stock.
About Cooper-Standard
Cooper-Standard Holdings Inc., through its subsidiary Cooper-Standard Automotive Inc., specializes in the production and sale of sealing, fuel and brake delivery, and fluid transfer systems. The company operates in various regions, including the United States, Mexico, China, Poland, Canada, Germany, and France.
Cooper-Standard provides a diverse range of products, including dynamic seals, static seals, encapsulated glasses, and specialty sealing systems, among others. As the company navigates these challenging times, its stakeholders remain watchful of upcoming developments in financial performance and market positioning.
