TAT Technologies (NASDAQ:TATT) Shares Gap Down Following Weak Earnings

TAT Technologies Ltd. (NASDAQ:TATT)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $56.55, but opened at $51.05. TAT Technologies shares last traded at $53.7990, with a volume of 121,068 shares changing hands.

The aerospace company reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.03). TAT Technologies had a net margin of 9.08% and a return on equity of 11.10%. The firm had revenue of $46.53 million during the quarter, compared to analysts’ expectations of $48.04 million.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on TATT. Lake Street Capital reaffirmed a “buy” rating and issued a $59.00 target price on shares of TAT Technologies in a research report on Wednesday, February 4th. Wall Street Zen lowered shares of TAT Technologies from a “buy” rating to a “hold” rating in a research note on Saturday, February 21st. Benchmark boosted their price target on shares of TAT Technologies from $58.00 to $66.00 and gave the stock a “buy” rating in a research note on Thursday, March 12th. Freedom Capital raised TAT Technologies from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 16th. Finally, Zacks Research upgraded TAT Technologies from a “strong sell” rating to a “hold” rating in a report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $54.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Boston Partners purchased a new stake in TAT Technologies in the second quarter valued at approximately $13,205,000. New York State Common Retirement Fund purchased a new position in shares of TAT Technologies during the third quarter worth approximately $10,150,000. Principal Financial Group Inc. grew its position in shares of TAT Technologies by 49.0% during the third quarter. Principal Financial Group Inc. now owns 39,553 shares of the aerospace company’s stock worth $1,742,000 after acquiring an additional 13,013 shares during the last quarter. Russell Investments Group Ltd. acquired a new position in shares of TAT Technologies in the 2nd quarter valued at $4,119,000. Finally, Migdal Insurance & Financial Holdings Ltd. purchased a new stake in TAT Technologies in the 3rd quarter valued at $8,869,000. Institutional investors and hedge funds own 15.13% of the company’s stock.

TAT Technologies Stock Performance

The company has a current ratio of 4.44, a quick ratio of 2.34 and a debt-to-equity ratio of 0.06. The stock has a market cap of $675.92 million, a price-to-earnings ratio of 40.50 and a beta of 0.93. The stock’s 50 day moving average is $53.29 and its two-hundred day moving average is $45.15.

About TAT Technologies

TAT Technologies Ltd. is a global provider of environmental control and thermal management solutions for the aerospace industry. The company specializes in the design, manufacturing and support of aircraft environmental control systems (ECS), heat exchangers and related components. Its product portfolio serves commercial and military airframers, engine manufacturers and airlines, offering critical systems that regulate cabin pressure, temperature and ventilation on fixed-wing and rotary aircraft.

Key offerings include air cycle machines, preconditioned air units, steam/water separators and specialty heat exchangers engineered to meet stringent aerospace standards.