Why Is Sensata Technologies (ST) Stock Soaring Today
What Happened:
Shares of sensor manufacturer Sensata Technology (NYSE:ST) jumped 5.5% in the pre-market session after Oppenheimer analyst Christopher Glynn upgraded the stock's rating from Perform (Hold) to Outperform (Buy) and assigned a price target of $50. The new price target represents a potential 35% upside from where shares traded when the upgrade was announced.
The analyst added, "Our upgrade focuses on significant ramp in new business wins over the past several years, capital allocation pivot to debt reduction, and solid positioning for margin performance." After the initial pop the shares cooled down to $37.19, up 4% from previous close.
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What is the market telling us:
Sensata Technologies's shares are not very volatile than the market average and over the last year have had only 5 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago, when the stock dropped 5.8% on the news that the company reported first-quarter revenue and earnings per share (EPS) that narrowly beat analysts' expectations, although free cash flow missed. In addition, the next-quarter outlook was below expectations, as it forecasted weaker sales.
Sensata Technologies is up 0.2% since the beginning of the year, but at $37.19 per share it is still trading 31% below its 52-week high of $53.87 from February 2023. Investors who bought $1,000 worth of Sensata Technologies's shares 5 years ago would now be looking at an investment worth $785.76.
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