Astronics Corporation (NASDAQ: ATRO) has recently garnered attention from analysts, with its shares upgraded from a buy rating to a strong-buy rating by Wall Street Zen in a report distributed to investors on Monday. This positive momentum follows a series of mixed evaluations from various equity analysts over the past few weeks.
On October 8, 2023, Weiss Ratings reiterated a “sell (d-)” rating for Astronics, highlighting a cautious outlook. Conversely, on November 4, 2023, Zacks Research elevated its rating from “hold” to “strong-buy,” indicating increasing confidence in the company’s performance. Adding to the optimism, Truist Financial raised its price target on Astronics shares from $49.00 to $58.00 while maintaining a “buy” rating on October 15, 2023. Additionally, Craig Hallum initiated coverage on the stock with a “buy” rating and set a price objective of $60.00.
At present, the consensus among analysts reflects a balanced view, with one rating the stock as a strong buy, four as a buy, and one as a sell. According to MarketBeat.com, Astronics currently holds an average rating of “Moderate Buy” and a consensus target price of $61.00.
Strong Earnings Report Boosts Investor Confidence
Astronics last released its earnings results on November 4, 2023. The aerospace firm reported earnings of $0.49 per share for the quarter, exceeding the consensus estimate of $0.42 by $0.07. Revenue for the quarter reached $211.45 million, also surpassing analyst expectations of $210.80 million. The company’s return on equity was recorded at 22.89%, although it faced a slight net margin of -0.45%.
Looking ahead, Astronics has set its guidance for fiscal year 2025, forecasting earnings per share of $0.82 for the current year, according to industry analysts. This optimistic outlook, coupled with the recent upgrades, suggests a growing faith in the company’s future performance.
Insider Activity and Institutional Investments
In related news, insider trading activity was noted when James Mulato sold 1,129 shares of Astronics on September 5, 2023. The shares, sold at an average price of $38.16, amounted to approximately $43,082.64. Following this transaction, Mulato’s remaining shares in the company were valued at about $40,678.56, reflecting a significant reduction of 51.44% in his holdings. This transaction was disclosed in a filing with the Securities and Exchange Commission.
The institutional ownership of Astronics is noteworthy, with institutions holding 56.68% of the stock. Recent trading activities reveal that Brighton Jones LLC increased its stake by 3.1% in the third quarter, acquiring 216 shares and now owning 7,085 shares valued at approximately $323,000.
Other institutional investors, such as Covestor Ltd and US Bancorp DE, have also bolstered their positions, with Covestor increasing its stake by 25.4% and US Bancorp DE by 41.0%. These movements indicate a growing interest in Astronics among institutional investors.
Overall, the recent upgrades and positive earnings report have positioned Astronics favorably in the market, attracting both analyst upgrades and institutional investments as the company continues to navigate its growth in the aerospace sector.