Why is Cooper-Standard Holdings (NYSE:CPS) soaring today?

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Highlights:

  • CPS stock soared over 70 per cent on Friday morning.
  • Cooper-Standard Holdings Inc. (NYSE: CPS) reported its Q2 FY22 earnings results on August 4.
  • The company's total sales surged over 13 per cent YoY in Q2 FY22.

The system and components supplier in the automotive sector, Cooper-Standard Holdings Inc. (NYSE: CPS), made a significant place in the market on August 5 with a surge of over 70 per cent in its price on Friday morning. Notably, the company released its Q2 2022 earnings results on August 4.

CPS stock traded at US$ 8.91 at 11:05 AM ET on August 5, up 77.14 per cent from its previous closing price.

Let's discuss the stock performance of Cooper-Standard Holdings Inc. with Kalkine Media®.

Cooper-Standard Holdings Inc. (NYSE: CPS) stock performance:

At the current trading price, CPS traded about 141 per cent above its 52-week low of US$ 3.52 noted on June 16 this year.

Cooper-Standard's Relative Strength Index or RSI is 77, suggesting that the stock could be experiencing an overbought condition. Some analysts believe that an RSI value of over 70 suggests that a stock is in an overbought state.

Despite the notable surge in the firm's stock price, it still traded below about 62 per cent year-to-date (YTD). On an annual basis, it fell 57 per cent. 

Second quarter fiscal 2022 financial highlights:

The total sales of the Northville, Michigan-based firm increased at a rate of 13.6 per cent to US$ 605.9 million in Q2 FY22, from US$ 533.2 million in the comparable quarter of the previous year. Its net loss also improved to US$ 33.2 million in Q2 FY22, from a net loss of US$ 63.6 million in the year-ago quarter.

In the second quarter of fiscal 2022, its diluted loss per share was US$ 1.93, against a loss of US$ 3.73 per diluted share in Q2 FY21.


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For the six months ended on June 30, 2022, its net loss was US$ 94.6 million on a total sales of US$ 1.21 billion, versus a loss of US$ 97.5 million on a total sales of US$ 1.20 billion in the same period of fiscal 2021.

Cooper-Standard Holdings raised its sales guidance for fiscal 2022 to be between US$ 2.6 billion and US$ 2.8 billion, from its prior guidance range of US$ 2.5 billion to US$ 2.7 billion.

Bottom line

Among other recent developments, Cooper-Standard Holdings Inc. appointed Karen Twitchell and John (Jack) Boss to the company's Board of Directors, effective August 2, 2022.

However, despite the notable surge in the firm's stock price, investors should closely evaluate the company and the recent market condition before considering an investment.


 


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