In a notable shift in investment sentiment, Astronics Corporation (NASDAQ: ATRO) received an upgrade from Wall Street Zen, moving from a buy rating to a strong-buy rating in a research report issued to investors on October 8, 2023. This upgrade follows a series of evaluations from various equity analysts that reflect a growing confidence in the company’s performance.
Several analysts have recently weighed in on Astronics. Weiss Ratings reiterated a “sell (d-)” rating, while Zacks Research elevated the stock from a “hold” to a “strong-buy” rating on November 4, 2023. Truist Financial also increased its price target for Astronics, raising it from $49.00 to $58.00, and assigned a “buy” rating. Additionally, Craig Hallum initiated coverage on Astronics, giving the stock a “buy” rating with a price objective of $60.00. Currently, one analyst has issued a strong buy recommendation, four analysts have rated it as a buy, and one has given a sell rating. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $61.00.
Strong Earnings Performance
Astronics recently reported its earnings results for the third quarter, revealing earnings per share (EPS) of $0.49, surpassing the consensus estimate of $0.42 by $0.07. The aerospace company recorded revenue of $211.45 million, slightly above analyst expectations of $210.80 million. The firm achieved a positive return on equity of 22.89% despite a negative net margin of 0.45%. Looking ahead, Astronics has provided guidance for fiscal year 2025, with sell-side analysts predicting an EPS of 0.82 for the current year.
In a related development, 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 remaining shares in the company decreased to 1,066, valued at about $40,678.56, marking a 51.44% reduction in his position. This sale was disclosed in a filing with the Securities and Exchange Commission, which can be accessed through their official website. Notably, company insiders currently hold 9.39% of Astronics’ stock.
Institutional Investor Activity
Hedge funds have actively traded shares of Astronics in recent months. Brighton Jones LLC increased its stake by 3.1% in the third quarter, now holding 7,085 shares valued at $323,000 after acquiring an additional 216 shares. Covestor Ltd boosted its stake by 25.4%, bringing its total to 1,068 shares worth $49,000. Similarly, US Bancorp DE expanded its position by 41.0%, owning 966 shares valued at $44,000 after acquiring an additional 281 shares. Ameritas Investment Partners Inc. raised its stake by 13.6% during the second quarter, owning 3,091 shares valued at $103,000. Lastly, WINTON GROUP Ltd increased its holdings by 4.6%, now owning 8,644 shares worth $394,000. Institutional investors collectively own 56.68% of Astronics’ stock.
Astronics Corporation, headquartered in the United States, designs and manufactures products serving the aerospace, defense, and electronics industries globally. The company operates two primary segments: Aerospace and Test Systems. The Aerospace segment provides a range of products, including lighting and safety systems, electrical power generation systems, and avionics products, contributing significantly to its revenue streams.
As the aerospace industry continues to evolve, the positive outlook for Astronics reflects both its robust earnings performance and the confidence of analysts and institutional investors in its growth potential.
