CTS (NYSE:CTS) Trading Down 10% After Earnings Miss

Shares of CTS Corporation (NYSE:CTS) dropped 10% during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $36.21 and last traded at $38.2010. Approximately 52,216 shares were traded during trading, a decline of 72% from the average daily volume of 184,056 shares. The stock had previously closed at $42.44.

The electronics maker reported $0.60 earnings per share for the quarter, missing the consensus estimate of $0.61 by ($0.01). The firm had revenue of $142.97 million during the quarter, compared to the consensus estimate of $136.40 million. CTS had a net margin of 11.14% and a return on equity of 11.92%. CTS has set its FY 2025 guidance at 2.200-2.250 EPS.

CTS Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 24th. Shareholders of record on Friday, September 26th were paid a dividend of $0.04 per share. The ex-dividend date of this dividend was Friday, September 26th. This represents a $0.16 annualized dividend and a yield of 0.4%. CTS’s dividend payout ratio (DPR) is presently 7.55%.

Analyst Ratings Changes

CTS has been the topic of several research analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of CTS in a research note on Wednesday, October 8th. Wall Street Zen cut shares of CTS from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 4th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of “Hold”.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CTS. GAMMA Investing LLC boosted its holdings in shares of CTS by 81.3% during the first quarter. GAMMA Investing LLC now owns 1,273 shares of the electronics maker’s stock worth $53,000 after purchasing an additional 571 shares during the period. Principal Financial Group Inc. lifted its stake in shares of CTS by 2.4% in the first quarter. Principal Financial Group Inc. now owns 158,729 shares of the electronics maker’s stock worth $6,595,000 after buying an additional 3,711 shares during the last quarter. Larson Financial Group LLC acquired a new stake in shares of CTS in the first quarter worth $75,000. GW&K Investment Management LLC lifted its stake in shares of CTS by 2.1% in the first quarter. GW&K Investment Management LLC now owns 303,200 shares of the electronics maker’s stock worth $12,598,000 after buying an additional 6,107 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of CTS in the first quarter worth $277,000. 96.87% of the stock is currently owned by institutional investors and hedge funds.

CTS Price Performance

The stock’s 50-day moving average is $40.96 and its 200-day moving average is $40.97. The firm has a market cap of $1.21 billion, a P/E ratio of 20.86, a price-to-earnings-growth ratio of 1.13 and a beta of 0.84. The company has a quick ratio of 2.04, a current ratio of 2.64 and a debt-to-equity ratio of 0.17.

About CTS

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals.