Astronics Receives Upgrade to Strong-Buy Amid Positive Earnings

Shares of Astronics Corporation (NASDAQ:ATRO) received a significant boost as Wall Street Zen upgraded its rating from “buy” to “strong-buy” in a report released to investors on Monday. This upgrade follows a series of mixed evaluations from various analysts, highlighting a notable divergence in market sentiment regarding the aerospace company’s performance.

In the past week, several equity analysts have provided their assessments. On October 8, 2023, Weiss Ratings maintained a “sell (d-)” rating on Astronics. Conversely, Zacks Research elevated its stance, changing from a “hold” rating to a “strong-buy” on November 4, 2023. Additionally, Truist Financial raised its price target for Astronics from $49.00 to $58.00 while maintaining a “buy” rating. Following suit, Craig Hallum initiated coverage on Astronics with a “buy” rating and a target price of $60.00 on October 10, 2023.

Currently, one analyst has assigned a “strong buy” rating, four have given a “buy” rating, and one analyst has issued a “sell” rating. According to MarketBeat.com, Astronics holds an average rating of “moderate buy” with a consensus target price of $61.00.

Positive Earnings and Financial Outlook

Astronics recently announced its earnings results for the quarter ending on November 4, 2023. The company reported earnings per share (EPS) of $0.49, exceeding the consensus estimate of $0.42 by $0.07. The firm generated $211.45 million in revenue, surpassing analyst predictions of $210.80 million. The positive performance is reflected in a return on equity of 22.89%, although the company reported a negative net margin of 0.45%. For the fiscal year 2025, Astronics has set its EPS guidance, with analysts predicting an average EPS of $0.82 for the current year.

Insider Activity and Institutional Investments

In related news, insider James Mulato sold 1,129 shares of Astronics stock on September 5, 2023, at an average price of $38.16, totaling approximately $43,082.64. Following this transaction, Mulato retained 1,066 shares, valued at about $40,678.56, marking a 51.44% decrease in his position. This sale has been documented in a filing with the Securities and Exchange Commission (SEC).

Institutional interest in Astronics has been notable, with 56.68% of the stock owned by institutional investors. Hedge funds have actively adjusted their positions. For instance, Brighton Jones LLC increased its stake by 3.1% during the third quarter, acquiring an additional 216 shares and bringing its total to 7,085 shares, valued at approximately $323,000. Similarly, Covestor Ltd boosted its holding by 25.4%, while US Bancorp DE grew its stake by 41.0%.

With its dual focus on aerospace and test systems, Astronics designs and manufactures a variety of products catering to the aerospace, defense, and electronics sectors across the globe. The firm continues to adapt in a competitive market, emphasizing innovation and shareholder value.