CTS Corporation Reports Significant Growth in Short Interest

CTS Corporation experienced a notable increase in short interest during September 2023. As of September 30, short interest in the company rose to a total of 454,000 shares, reflecting a substantial growth of **50.5%** from the **301,700 shares** reported on September 15. With an average daily trading volume of **199,800** shares, the current short-interest ratio stands at **2.3 days**.

Investors now find approximately **1.6%** of CTS’s shares sold short, indicating heightened trading activity and potential market speculation regarding the company’s performance.

Stock Performance and Financial Overview

On October 6, CTS shares opened at **$42.14**, contributing to a market capitalization of **$1.24 billion**. The company’s price-to-earnings ratio is currently **19.88**, complemented by a PEG ratio of **1.14** and a beta of **0.84**. The stock has experienced volatility over the past year, with a low of **$34.02** and a high of **$59.68**.

Financially, CTS boasts a quick ratio of **2.04** and a current ratio of **2.61**, showcasing its strong liquidity position. The debt-to-equity ratio is relatively low at **0.16**, indicating a conservative approach to leveraging.

The company’s most recent quarterly earnings report, released on **July 24, 2023**, revealed earnings per share (EPS) of **$0.57**, surpassing analysts’ expectations of **$0.55** by **$0.02**. CTS reported revenue of **$135.30 million**, exceeding the anticipated **$132.65 million**. This performance marked an increase from the previous year’s EPS of **$0.54**.

Analyst Ratings and Institutional Activity

In recent weeks, various research firms have adjusted their ratings for CTS. On October 8, Weiss Ratings reaffirmed a “hold (c)” rating for the company. Conversely, Wall Street Zen downgraded CTS from a “strong-buy” to a “buy” rating on October 4. Overall, according to data from MarketBeat.com, CTS has garnered a consensus rating of “Hold” from analysts.

Institutional investors have also been active regarding CTS shares. Notably, Meeder Asset Management Inc. acquired a new stake in the company worth **$37,000** in the first quarter. GAMMA Investing LLC increased its holdings by **81.3%** during the same period, now owning **1,273 shares** valued at **$53,000**. Additionally, Larson Financial Group LLC and Pacer Advisors Inc. have added stakes worth **$75,000** and **$119,000**, respectively. Overall, institutional investors control **96.87%** of CTS’s stock.

CTS Corporation is a manufacturer of sensors, actuators, and connectivity components, serving markets in North America, Europe, and Asia. Its diverse product offerings include encoders, rotary position sensors, and industrial potentiometers, among others.

As CTS continues to navigate market dynamics, the implications of rising short interest and evolving analyst ratings will be closely monitored by investors and stakeholders alike.