Sensata Technologies Raises Share Buyback to $500M

Sensata Technologies (NYSE: ST) has revealed that its Board has approved a new share repurchase program worth $500 million.

Headquartered in Attleboro, Massachusetts, Sensata Technologies designs and manufactures electromechanical, electronic sensors and controls. It operates through the two segments: Performance Sensing and Sensing Solutions.

Details of the New Repurchase Program

The new repurchase program replaces the prior share repurchase program, which had the remaining authorization of $254 million as of December 31, 2021.

Subject to market conditions or other factors, the shares may be repurchase from time to time through open market or privately negotiated transactions. However, the buyback program could be suspended or discontinued at any time.

CEO Weighs In

Sensata Technologies CEO, Jeff Cote, commented, “Our share repurchase plan demonstrates our belief in our financial outlook and our ability to generate strong free cash flow, which we can deploy into value-creating initiatives for our shareholders.”

Putting light on the growth initiatives, he further added, “We will continue to pursue M&A to expand our Megatrend growth initiatives. The new repurchase program will augment our existing capital deployment strategies and enable us to drive attractive returns on invested capital over the long-term.”

Analysts Recommendation

On January 20, Evercore ISI analyst Amit Daryanani increased the price target on Sensata Technologies to $68 (15.8% upside potential) from $63 and reiterated a Hold rating.

The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 4 Buys and 5 Holds. At the time of writing, the average Sensata stock forecast was $68.44, which implies a 16.5% upside potential to current levels.

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