CTS (NYSE:CTS) Shares Gap Down on Disappointing Earnings

CTS Co. (NYSE:CTS - Get Free Report) shares gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $49.27, but opened at $45.84. CTS shares last traded at $47.86, with a volume of 14,333 shares trading hands.

The electronics maker reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.06). CTS had a return on equity of 12.39% and a net margin of 11.66%.

CTS Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Stockholders of record on Friday, March 28th will be paid a $0.04 dividend. The ex-dividend date is Friday, March 28th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.34%. CTS's payout ratio is presently 8.25%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Scotiabank cut CTS from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 25th. StockNews.com raised shares of CTS from a "hold" rating to a "buy" rating in a report on Saturday, February 1st.

Insider Activity

In other CTS news, CEO Kieran M. O'sullivan sold 31,978 shares of the company's stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $55.81, for a total transaction of $1,784,692.18. Following the transaction, the chief executive officer now directly owns 423,665 shares in the company, valued at approximately $23,644,743.65. This represents a 7.02 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders sold 59,956 shares of company stock worth $3,331,185. 2.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CTS

A number of institutional investors and hedge funds have recently modified their holdings of the business. Wasatch Advisors LP raised its position in shares of CTS by 23.1% during the 3rd quarter. Wasatch Advisors LP now owns 1,993,863 shares of the electronics maker's stock valued at $96,463,000 after acquiring an additional 374,104 shares during the last quarter. Raymond James Financial Inc. bought a new stake in CTS during the 4th quarter worth approximately $15,852,000. Weiss Asset Management LP bought a new stake in shares of CTS during the third quarter worth $4,960,000. Allspring Global Investments Holdings LLC lifted its holdings in shares of CTS by 252.5% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 65,174 shares of the electronics maker's stock valued at $3,437,000 after purchasing an additional 46,686 shares in the last quarter. Finally, Barclays PLC grew its stake in shares of CTS by 256.1% during the 3rd quarter. Barclays PLC now owns 57,238 shares of the electronics maker's stock worth $2,769,000 after acquiring an additional 41,164 shares in the last quarter. 96.87% of the stock is owned by institutional investors.

CTS Stock Performance

The company has a market capitalization of $1.40 billion, a price-to-earnings ratio of 23.96 and a beta of 0.59. The stock's 50 day moving average price is $52.67 and its 200 day moving average price is $50.54. The company has a current ratio of 2.46, a quick ratio of 1.91 and a debt-to-equity ratio of 0.19.

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.