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Call Buyers Target Auto Parts Company Leveraged to Electronification Trends

Call Buyers Target Auto Parts Company Leveraged to Electronification Trends

by | Jan 13, 2022 | Featured Radar Reports

Stoneridge (SRI) interesting small-cap that saw unusual buyers of 1000 June $20 calls on 1/13 for $2.80, name with less than 300 options in open interest total. Shares pulled back into a big volume node from 2020 and forming a multi-week base under $23. A breakout move has room back to $28 and then $31.50, two high-volume nodes from 2021. The $555M company makes electrical and electronic components for major vehicles including automotive, off-highway, motorcycle, and agricultural machinery. Their product reach is broad, too, across powertrain actuation, emissions sensors, telematics, and vision/safety systems that monitor or measure specific functions within a vehicle. SRI has been in operation since 1965 but undergoing a big transformation for the next-gen world with a targeted goal of 85% drivetrain agnostic sales by 2025. They divested some non-core businesses like their wiring business, switches lines, and some sensor products in 2019. SRI created a CTO position and investing in Autotech Ventures VC funds for more access to tech and start-up partnerships. As a result, they’re better positioned around some key megatrends in transports like intelligent cars, fuel efficiency, and clean emissions. The company has a big 5-year backlog of $3B, more than 5X 2020 sales, and a 10% 5-year CAGR. Hedge fund ownership rose 1.5% last quarter. Frontier Capital with 2M shares and Cooper Creek Partners with 727K shares.