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

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

Several other research firms also recently weighed in on STRT. Weiss Ratings reissued a “buy (b)” rating on shares of Strattec Security in a research note on Friday, March 27th. Wall Street Zen downgraded shares of Strattec Security from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 9th. Finally, Freedom Capital raised shares of Strattec Security from a “hold” rating to a “strong-buy” rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy”.

Strattec Security Stock Down 0.5%

STRT opened at $62.45 on Tuesday. The company has a market cap of $260.98 million, a price-to-earnings ratio of 10.31, a PEG ratio of 1.03 and a beta of 1.17. Strattec Security has a 52-week low of $44.44 and a 52-week high of $92.50. The firm’s fifty day simple moving average is $76.82 and its two-hundred day simple moving average is $77.75.

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

Institutional Investors Weigh In On Strattec Security

Hedge funds and other institutional investors have recently bought and sold shares of the company. Gabelli Funds LLC increased its position in Strattec Security by 342.6% during the third quarter. Gabelli Funds LLC now owns 138,100 shares of the auto parts company’s stock worth $9,399,000 after purchasing an additional 106,900 shares during the last quarter. Sierra Summit Advisors LLC acquired a new stake in Strattec Security during the third quarter worth about $859,000. Teton Advisors LLC acquired a new stake in Strattec Security during the third quarter worth about $2,416,000. Principal Financial Group Inc. acquired a new stake in Strattec Security during the third quarter worth about $428,000. Finally, WINTON GROUP Ltd acquired a new stake in Strattec Security during the third quarter worth about $775,000. 68.91% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Strattec Security

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.