Sensata Technologies (NYSE:ST) Shares Gap Down – Should You Sell?

Sensata Technologies Holding N.V. (NYSE:ST)’s stock price gapped down before the market opened on Wednesday. The stock had previously closed at $42.32, but opened at $41.14. Sensata Technologies shares last traded at $41.26, with a volume of 185,080 shares traded.

Key Stories Impacting Sensata Technologies

Here are the key news stories impacting Sensata Technologies this week:

• Positive Sentiment: Sensata reported third-quarter earnings of $1.13 per share, well above the $0.96 analyst consensus and up from $0.89 a year earlier. Revenue rose 7.7% year over year to approximately $1.0 billion, also exceeding expectations. Sensata Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Truist Securities maintained its Buy rating, although it trimmed its price target modestly to $57 from $58. The revised target still implies meaningful upside from recent trading levels. Truist Adjusts Sensata Price Target
• Positive Sentiment: Zacks highlighted Sensata as a strongly rated value stock, which may attract investors seeking relatively favorable valuation characteristics. Why Sensata Is a Strong Value Stock
• Neutral Sentiment: The stock recently moved above its 200-day moving average, a technical development that could support longer-term sentiment, though it does not change the near-term earnings outlook. Sensata Stock Crosses Above 200-Day Moving Average
• Negative Sentiment: Management’s fourth-quarter revenue guidance was viewed as weak, prompting the market reaction. The outlook suggests slower near-term growth and outweighed the third-quarter beat, while investors await additional details from the earnings call. Sensata Falls on Weak Fourth-Quarter Revenue Guidance

Analysts Set New Price Targets

ST has been the subject of several research reports. Bank of America lifted their target price on Sensata Technologies from $46.00 to $48.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. Barclays raised their price target on Sensata Technologies from $53.00 to $55.00 and gave the company an “equal weight” rating in a report on Monday, August 3rd. UBS Group lowered their price objective on Sensata Technologies from $57.00 to $54.00 and set a “buy” rating for the company in a research report on Wednesday, October 7th. Oppenheimer boosted their price objective on Sensata Technologies from $55.00 to $58.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Finally, Weiss Ratings downgraded shares of Sensata Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $48.80.

Sensata Technologies Stock Down 3.7%

The stock has a market cap of $5.93 billion, a P/E ratio of 67.93 and a beta of 1.25. The stock has a fifty day simple moving average of $42.00 and a 200-day simple moving average of $41.77.

Sensata Technologies (NYSE:ST) last announced its quarterly earnings results on Tuesday, October 27th. The scientific and technical instruments company reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.17. The company had revenue of $1 billion during the quarter, compared to the consensus estimate of $972.97 million. The business’s revenue was up 7.7% compared to the same quarter last year. During the same period last year, the company earned $0.89 earnings per share. Sell-side analysts anticipate that Sensata Technologies Holding N.V. will post 3.77 earnings per share for the current year.

Sensata Technologies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be issued a $0.12 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. Sensata Technologies’s payout ratio is 80.00%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ST. Janus Henderson Group PLC grew its position in shares of Sensata Technologies by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 10,402,517 shares of the scientific and technical instruments company’s stock valued at $366,376,000 after purchasing an additional 112,819 shares during the period. Dimensional Fund Advisors LP lifted its stake in Sensata Technologies by 1.7% in the first quarter. Dimensional Fund Advisors LP now owns 7,391,230 shares of the scientific and technical instruments company’s stock valued at $260,302,000 after buying an additional 125,127 shares in the last quarter. Quantinno Capital Management LP lifted its stake in Sensata Technologies by 45.5% in the first quarter. Quantinno Capital Management LP now owns 2,402,063 shares of the scientific and technical instruments company’s stock valued at $84,601,000 after buying an additional 750,646 shares in the last quarter. Bank of America Corp DE lifted its stake in Sensata Technologies by 5.7% in the first quarter. Bank of America Corp DE now owns 1,766,285 shares of the scientific and technical instruments company’s stock valued at $62,209,000 after buying an additional 95,874 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of Sensata Technologies by 29.8% in the first quarter. Bank of New York Mellon Corp now owns 1,356,087 shares of the scientific and technical instruments company’s stock valued at $47,761,000 after buying an additional 311,424 shares during the period. 99.42% of the stock is owned by institutional investors and hedge funds.

About Sensata Technologies

Sensata Technologies Holding plc (NYSE: ST) is a global developer and manufacturer of sensing, control and protection solutions. The company supplies components that help monitor conditions, improve safety and efficiency, and support automated decision-making in vehicles, industrial equipment and other systems.

Its products include pressure, temperature, position, speed, force, current and fluid-level sensors, along with circuit breakers, controls and other protection devices. Sensata’s technologies are used in applications such as automotive systems, heavy-duty vehicles, industrial machinery, heating and air-conditioning equipment, aerospace and defense, energy infrastructure, and data centers.

Sensata serves original equipment manufacturers and other industrial customers across North America, Europe, Asia and additional international markets.