Sensata: Still Frustrating, But New CEO And Elliott's Involvement Could Finally Drive Change

Stephen Simpson
20.39K Followers
(10min)

Summary

  • Sensata Technologies has been hit by downturns in multiple end-markets, but underperformance is a multiyear issue and has prompted activist investor involvement at the company.
  • Weak industrial and HVAC markets in 2024, coupled with an unwelcome EV content shift, pose near-term challenges for Sensata, while long-term capital allocation decisions haven't panned out.
  • New leadership at Sensata could lead to more substantial changes in the company's strategic direction, including significant divestitures and a renewed focus on its core business.
A future automobile and a graphic user interface (GUI). smart car linked car The Internet of Things the HUD, or head-up display

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Sensata Technologies (NYSE:ST) has been an exasperating company to follow. Although there aren’t really great “apples to apples” comps for the company, it doesn’t really matter if you evaluate it as an auto supplier, an industrial, or some sort of technology-driven hybrid. By any metric, the

This article was written by

20.39K Followers
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BWA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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