Zacks Research Downgrades Strattec Security (NASDAQ:STRT) to Strong Sell

Strattec Security (NASDAQ:STRT) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently weighed in on STRT. Freedom Capital upgraded shares of Strattec Security from a “hold” rating to a “strong-buy” rating in a research report on Monday. Wall Street Zen cut shares of Strattec Security from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 9th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Strattec Security in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy”.

Strattec Security Trading Down 0.5%

Strattec Security stock opened at $62.45 on Tuesday. Strattec Security has a 12-month low of $44.44 and a 12-month high of $92.50. The stock has a market cap of $260.98 million, a P/E ratio of 10.31, a PEG ratio of 1.03 and a beta of 1.17. The company has a 50-day moving average price of $76.82 and a 200 day moving average price of $77.75.

Strattec Security (NASDAQ:STRT) last announced its quarterly earnings results on Thursday, May 7th. The auto parts company reported $0.90 earnings per share for the quarter, missing analysts’ consensus estimates of $1.14 by ($0.24). Strattec Security had a net margin of 4.31% and a return on equity of 11.00%. The company had revenue of $137.63 million for the quarter, compared to analyst estimates of $140.35 million. As a group, analysts forecast that Strattec Security will post 6.12 EPS for the current year.

Institutional Trading of Strattec Security

Institutional investors have recently modified their holdings of the stock. Gabelli Funds LLC lifted its position in shares of Strattec Security by 342.6% during the 3rd quarter. Gabelli Funds LLC now owns 138,100 shares of the auto parts company’s stock worth $9,399,000 after buying an additional 106,900 shares during the last quarter. Sierra Summit Advisors LLC purchased a new stake in shares of Strattec Security during the 3rd quarter worth approximately $859,000. Teton Advisors LLC purchased a new stake in shares of Strattec Security during the 3rd quarter worth approximately $2,416,000. Principal Financial Group Inc. purchased a new stake in shares of Strattec Security during the 3rd quarter worth approximately $428,000. Finally, WINTON GROUP Ltd purchased a new stake in shares of Strattec Security during the 3rd quarter worth approximately $775,000. Hedge funds and other institutional investors own 68.91% of the company’s stock.

Strattec Security News Summary

Here are the key news stories impacting Strattec Security this week:

• Positive Sentiment: Freedom Capital upgraded Strattec Security from “hold” to “strong-buy,” which can support investor confidence. Freedom Broker upgrades Strattec Security (STRT)
• Positive Sentiment: Strattec said a manufacturer is investing $2 million in its Glendale plant, a sign of ongoing operational support and potential long-term capacity benefits. Manufacturer invests $2M in Glendale plant as office search continues
• Neutral Sentiment: Sidoti left its FY2026 EPS estimate at $6.12, matching the latest consensus, suggesting no major change to the current-year outlook.
• Negative Sentiment: Sidoti cut FY2027 EPS estimates for Strattec Security to $4.85 from $6.27, signaling weaker expected earnings growth next year.
• Negative Sentiment: Sidoti also reduced Q1 2027 EPS to $1.31 from $1.58 and Q2 2027 EPS to $1.03 from $1.19, while trimming Q3 2027 EPS to $1.02 from $1.77 and Q4 2027 EPS to $1.49 from $1.72, reflecting a softer forward outlook.
• Negative Sentiment: Zacks reported STRT’s Q3 earnings missed estimates on lower volume and forex/tariff pressure, reinforcing concerns about demand and margin headwinds. STRT Q3 Earnings Miss Estimates on Lower Volume and Forex Drag

Strattec Security Company Profile

Strattec Security Corporation is a Wisconsin‐based designer and manufacturer of mechanical and electronic locking systems for the global automotive market. Established more than five decades ago, the company supplies original equipment manufacturers (OEMs) and the aftermarket with a broad portfolio of lock and key solutions tailored to passenger cars, light trucks and commercial vehicles.

The company’s product range includes mechanical locking systems such as door lock cylinders, ignition lock modules, key blanks and door handles, as well as electromechanical and keyless‐entry systems.