Bae Systems (OTCMKTS:BAESY) Shares Gap Down - Here's Why

Key Points

• Bae Systems gapped down, opening at $95.10 after a prior close of $110.98, though the stock has since traded around $110.35 on a volume of 11,768 shares.
• Analyst activity is mixed: Kepler raised its rating to "hold" from "strong sell" and Sanford C. Bernstein cut to "market perform," leaving the consensus split (three Buy, three Hold) and an average rating of "Moderate Buy".
• Technically, the stock sits below its 50‑day SMA ($118.48) but above its 200‑day SMA ($105.85), and institutional ownership is extremely low at just 0.21%.

Bae Systems PLC (OTCMKTS:BAESY - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $110.98, but opened at $95.10. Bae Systems shares last traded at $110.35, with a volume of 11,768 shares.

Analyst Upgrades and Downgrades

BAESY has been the topic of several research analyst reports. Kepler Capital Markets raised shares of Bae Systems from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 6th. Jefferies Financial Group reiterated a "hold" rating on shares of Bae Systems in a research note on Wednesday, February 18th. Finally, Sanford C. Bernstein cut Bae Systems from an "outperform" rating to a "market perform" rating in a research report on Tuesday, January 6th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy".

Bae Systems Price Performance

The firm's 50-day simple moving average is $118.48 and its 200 day simple moving average is $105.85. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.87 and a current ratio of 0.99.

Hedge Funds Weigh In On Bae Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in BAESY. Salomon & Ludwin LLC increased its holdings in shares of Bae Systems by 3,150.0% during the third quarter. Salomon & Ludwin LLC now owns 260 shares of the aerospace company's stock worth $29,000 after buying an additional 252 shares in the last quarter. Hantz Financial Services Inc. raised its position in Bae Systems by 73.0% in the third quarter. Hantz Financial Services Inc. now owns 327 shares of the aerospace company's stock valued at $36,000 after purchasing an additional 138 shares during the last quarter. Steigerwald Gordon & Koch Inc. bought a new stake in shares of Bae Systems during the third quarter worth about $44,000. Atlas Capital Advisors Inc. acquired a new position in shares of Bae Systems in the fourth quarter valued at approximately $98,000. Finally, PNC Financial Services Group Inc. boosted its position in Bae Systems by 9.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,690 shares of the aerospace company's stock worth $157,000 after buying an additional 140 shares during the period. Institutional investors own 0.21% of the company's stock.

About Bae Systems

BAE Systems plc is a global defense, security and aerospace company that designs, develops and manufactures a broad range of military and related products and services. Formed in 1999 through the combination of British Aerospace and Marconi Electronic Systems, the company supplies platforms, systems and support across air, land, maritime and cyber domains. Its portfolio spans combat and support aircraft systems, naval shipbuilding and subsystems, armored and land combat solutions, electronic and sensor systems, munitions, and intelligence, surveillance and cybersecurity capabilities.

BAE Systems serves government and military customers worldwide, with particularly large footprints in the United Kingdom and the United States as well as operations and sales across Europe, the Middle East, Australia and other markets.

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