Shares of Elbit Systems (NASDAQ:ESLT) received a significant upgrade from Zacks Research, which has raised its rating from “hold” to “strong-buy.” This change was reported on Tuesday and reflects growing confidence in the company’s financial prospects.
Analysts continue to evaluate Elbit Systems, with several firms providing insights into its stock performance. Weiss Ratings maintained a “hold (c)” rating on October 8, while JPMorgan Chase & Co. initiated coverage on September 30 with a neutral rating and set a target price of $520.00. Additionally, Bank of America recently increased its target price from $500.00 to $540.00 and assigned a “buy” rating on August 26. Conversely, Wall Street Zen downgraded the stock from “buy” to “hold” on October 3. Currently, Elbit Systems holds an average rating of “Moderate Buy” with a target price of $530.00, according to MarketBeat.
Elbit Systems’ Financial Performance
On Tuesday, Elbit Systems shares opened at $491.65. The company boasts a market capitalization of $21.85 billion and reports a price-to-earnings (PE) ratio of 55.81. Its price-to-earnings growth (PEG) ratio stands at 1.83, and it has a beta of 0.33. The firm’s 50-day and 200-day simple moving averages are $487.80 and $442.47, respectively. Over the past year, Elbit Systems has recorded a low of $207.71 and a high of $529.99.
In its latest quarterly earnings report, released on August 13, Elbit Systems reported earnings per share (EPS) of $3.23, exceeding analysts’ expectations of $2.57 by $0.66. The company generated revenue of $1.97 billion during this quarter, surpassing consensus estimates of $1.89 billion. This performance marked a decline from the previous year’s EPS of $2.08. Analysts project that Elbit Systems will post an EPS of 8.05 for the current fiscal year.
Dividend Announcement and Institutional Investments
Elbit Systems also declared a quarterly dividend of $0.75 per share, set to be paid on October 27 to shareholders of record as of October 14. This marks an increase from the previous quarterly dividend of $0.60, representing an annualized dividend of $3.00 and a yield of 0.6%. The dividend payout ratio currently stands at 28.38%.
Recent activity from institutional investors highlights the growing interest in Elbit Systems. Y.D. More Investments Ltd. increased its stake by 35.1% during the second quarter, now holding 610,977 shares valued at $271.44 million. Similarly, JPMorgan Chase & Co. raised its stake by 226.6%, acquiring an additional 134,300 shares, bringing its total to 193,561 shares worth $87 million. Other firms, including Arrowstreet Capital Limited Partnership and Meitav Investment House Ltd., have also increased their holdings, reflecting a robust institutional confidence in the company. Currently, institutional investors own 17.88% of Elbit Systems’ stock.
Elbit Systems Ltd. specializes in developing and supplying a range of airborne, land, and naval systems for defense, homeland security, and commercial aviation applications, primarily based in Israel. The company operates through several segments, including Aerospace, C4I and Cyber, ISTAR and EW, and Elbit Systems of America.
As analysts continue to revise their ratings and target prices, the market will closely monitor Elbit Systems’ ongoing performance and strategic initiatives in the coming quarters.