CTS (NYSE:CTS) Trading Up 8.7% After Better-Than-Expected Earnings

CTS Corporation (NYSE:CTS) shot up 8.7% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $64.98 and last traded at $65.6940. 22,557 shares traded hands during trading, a decline of 91% from the average session volume of 248,388 shares. The stock had previously closed at $60.41.

The electronics maker reported $0.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.13. CTS had a return on equity of 12.90% and a net margin of 12.46%.The firm had revenue of $144.78 million during the quarter, compared to analyst estimates of $143.43 million. During the same period last year, the company earned $0.62 EPS. CTS has set its FY 2026 guidance at 2.550-2.700 EPS.

CTS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, June 26th were given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Friday, June 26th. CTS’s dividend payout ratio (DPR) is 6.84%.

Key CTS News

Here are the key news stories impacting CTS this week:

• Positive Sentiment: Q2 earnings and revenue exceeded estimates. Adjusted earnings were $0.74 per share versus the $0.61 consensus, while revenue reached $144.8 million, ahead of the $143.4 million estimate. Adjusted EPS increased from $0.57 a year earlier. CTS Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised 2026 guidance. CTS now expects sales of $565 million to $585 million, up from $560 million to $580 million, and adjusted diluted EPS of $2.55 to $2.70, versus the prior $2.35 to $2.45 range. The midpoint of the EPS forecast is above the $2.43 analyst consensus. CTS Announces Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash generation improved. Adjusted gross margin expanded to 41.5% from 38.7%, adjusted EBITDA margin rose to 25.4% from 23.0%, and operating cash flow increased to $33.4 million from $28.4 million. Diversified end-market sales grew 15% and represented 59% of revenue, supporting CTS’s portfolio diversification strategy. CTS Q2 2026 Sales Rise 7 Percent as Outlook Increases

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Zacks Research downgraded shares of CTS from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of CTS in a research report on Tuesday, May 26th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, CTS has an average rating of “Hold”.

Institutional Trading of CTS

Several hedge funds and other institutional investors have recently bought and sold shares of CTS. Tudor Investment Corp ET AL raised its position in shares of CTS by 103.4% in the 3rd 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in CTS by 11.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 70,298 shares of the electronics maker’s stock worth $2,921,000 after purchasing an additional 7,144 shares in the last quarter. Jane Street Group LLC lifted its position in shares of CTS by 19.0% during the first quarter. Jane Street Group LLC now owns 59,694 shares of the electronics maker’s stock valued at $2,480,000 after buying an additional 9,530 shares during the last quarter. Seizert Capital Partners LLC bought a new stake in shares of CTS in the 4th quarter valued at about $2,202,000. Finally, Lazard Asset Management LLC grew its position in shares of CTS by 4.3% in the 2nd quarter. Lazard Asset Management LLC now owns 31,664 shares of the electronics maker’s stock worth $1,349,000 after buying an additional 1,299 shares during the last quarter. Institutional investors own 96.87% of the company’s stock.

CTS Stock Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.98 and a current ratio of 2.52. The stock has a market cap of $1.86 billion, a P/E ratio of 27.87, a price-to-earnings-growth ratio of 1.54 and a beta of 1.04. The firm’s 50 day moving average is $63.08 and its 200 day moving average is $56.05.

About CTS

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.