Bae Systems (OTCMKTS:BAESY) Trading Down 4.9% - What's Next?

Key Points

• BAE Systems shares fell 4.9% on Thursday, trading as low as $98.55 and last changing hands at $98.71, well below the prior close of $103.77.
• Brokerage opinions were mixed, with Morgan Stanley reaffirming an overweight rating and Kepler Capital Markets upgrading the stock to buy, while Erste Group Bank downgraded it to hold. The consensus rating remains Moderate Buy.
• Recent institutional activity included new stakes and added positions by several investors, though institutions and hedge funds still own only 0.21% of the company. BAE Systems continues to be described as a global defense, security, and aerospace contractor with major operations in the U.K. and U.S.

Bae Systems PLC (OTCMKTS:BAESY - Get Free Report) shares dropped 4.9% on Thursday . The company traded as low as $98.5510 and last traded at $98.71. Approximately 112,097 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 415,956 shares. The stock had previously closed at $103.77.

Analysts Set New Price Targets

Several brokerages have issued reports on BAESY. Morgan Stanley restated an "overweight" rating on shares of Bae Systems in a research report on Thursday, June 25th. Kepler Capital Markets raised Bae Systems from a "hold" rating to a "buy" rating in a report on Wednesday, June 24th. Finally, Erste Group Bank downgraded Bae Systems from a "buy" rating to a "hold" rating in a research note on Thursday, June 25th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy".

Bae Systems Trading Down 4.9%

The company has a debt-to-equity ratio of 0.60, a current ratio of 0.99 and a quick ratio of 0.87. The stock has a 50-day simple moving average of $103.35 and a 200-day simple moving average of $109.02.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Arrow Capital Pty Ltd acquired a new stake in Bae Systems in the third quarter valued at approximately $5,531,000. Altrius Capital Management Inc increased its stake in Bae Systems by 5.5% during the 4th quarter. Altrius Capital Management Inc now owns 93,878 shares of the aerospace company's stock valued at $8,719,000 after purchasing an additional 4,911 shares in the last quarter. Collaborative Fund Advisors LLC bought a new stake in Bae Systems during the 1st quarter valued at $897,000. Sterling Capital Management LLC acquired a new position in Bae Systems during the first quarter worth $1,146,000. Finally, RNC Capital Management LLC lifted its stake in shares of Bae Systems by 4.2% in the fourth quarter. RNC Capital Management LLC now owns 5,655 shares of the aerospace company's stock valued at $525,000 after buying an additional 227 shares in the last quarter. Institutional investors and hedge funds 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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