CTS (NYSE:CTS) Shares Gap Up After Better-Than-Expected Earnings

CTS Corporation (NYSE:CTS)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $55.58, but opened at $58.85. CTS shares last traded at $58.4050, with a volume of 19,418 shares traded.

The electronics maker reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.60 by $0.02. CTS had a return on equity of 11.92% and a net margin of 11.14%.The firm had revenue of $137.27 million for the quarter, compared to analyst estimates of $135.86 million. CTS has set its FY 2026 guidance at 2.300-2.450 EPS.

CTS announced that its board has initiated a share buyback plan on Friday, November 7th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the electronics maker to repurchase up to 8.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Key Stories Impacting CTS

Here are the key news stories impacting CTS this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus: CTS reported $0.62 EPS and $137.27M revenue, topping estimates and improving vs. last year — investors often respond favorably to beats. Zacks: CTS Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Institutional/quant buying activity noted in recent filings (several funds added shares), which can provide support and validate management execution. Quiver Quant: CTS Releases Q4 2025 Earnings (includes institutional activity)
• Neutral Sentiment: FY‑2026 guidance set to $2.30–$2.45 EPS and $550M–$580M revenue — the EPS range’s midpoint is slightly below the consensus (~2.40) and revenue range envelops consensus, so guidance is broadly in line but not a clear upside catalyst. GlobeNewswire: CTS Announces Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Full earnings call transcript is available for detail on segment trends, margin outlook and demand commentary — useful for assessing whether management’s guidance and color justify the move. Seeking Alpha: CTS Q4 2025 Earnings Call Transcript
• Negative Sentiment: Short interest jumped ~52.9% in January to 591,426 shares (≈2.1% of float) with a ~3.0 days-to-cover — rising shorts can add selling pressure or volatility if sentiment turns. (Data reported 1/30)
• Negative Sentiment: Mixed institutional flows: while some firms added positions, large holders (e.g., T. Rowe Price in prior quarters) have materially reduced exposure, signifying divergent views among big investors. Quiver Quant: CTS Releases Q4 2025 Earnings (institutional moves)

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “hold (c)” rating on shares of CTS in a research note on Wednesday, January 21st. One analyst has rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of “Hold”.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CTS. Seizert Capital Partners LLC purchased a new stake in CTS in the 4th quarter valued at approximately $2,202,000. Horizon Investments LLC increased its position in CTS by 4.7% during the fourth quarter. Horizon Investments LLC now owns 14,084 shares of the electronics maker’s stock worth $604,000 after buying an additional 631 shares in the last quarter. Tudor Investment Corp ET AL raised its holdings in shares of CTS by 103.4% in the third quarter. Tudor Investment Corp ET AL now owns 85,266 shares of the electronics maker’s stock worth $3,406,000 after acquiring an additional 43,341 shares during the last quarter. Entropy Technologies LP acquired a new position in shares of CTS in the third quarter worth $341,000. Finally, SG Americas Securities LLC lifted its position in shares of CTS by 357.2% in the third quarter. SG Americas Securities LLC now owns 31,571 shares of the electronics maker’s stock valued at $1,261,000 after acquiring an additional 24,666 shares in the last quarter. 96.87% of the stock is owned by hedge funds and other institutional investors.

CTS Trading Up 3.4%

The firm has a market cap of $1.67 billion, a price-to-earnings ratio of 29.18, a price-to-earnings-growth ratio of 1.45 and a beta of 0.89. The business has a 50 day moving average of $47.26 and a 200 day moving average of $43.25. The company has a quick ratio of 2.12, a current ratio of 2.64 and a debt-to-equity ratio of 0.17.

CTS Company Profile

CTS Corporation (NYSE:CTS) is a global manufacturer and supplier of electronic components and sensors, headquartered in Lisle, Illinois. Established in 1896 as the Chicago Telephone Supply Company, the firm has evolved over more than a century to become a diversified provider of high-precision products for a wide range of end markets.

The company’s core business encompasses the design, development and production of sensors and actuators, frequency control devices such as quartz crystals and filters, multilayer ceramic capacitors, and inductive components.