Elbit Systems Ltd. (NASDAQ:ESLT) Short Interest Down 46.5% in May

Key Points

• Short interest in Elbit Systems fell sharply in May, dropping 46.5% to 103,811 shares as of May 29. That equals just 0.2% of shares outstanding and a very low 0.7-day days-to-cover ratio.
• Elbit Systems reported stronger-than-expected quarterly results, posting earnings of $3.87 per share versus the $2.98 estimate and revenue of $2.19 billion versus $2.14 billion expected. The company also said analysts expect full-year EPS of 15.72.
• The company declared a quarterly dividend of $1.00 per share, payable July 6 to shareholders of record on June 23. That works out to an annualized dividend of $4.00 and a yield of 0.5%.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report) was the recipient of a large decline in short interest during the month of May. As of May 29th, there was short interest totaling 103,811 shares, a decline of 46.5% from the May 14th total of 194,138 shares. Based on an average trading volume of 154,389 shares, the days-to-cover ratio is presently 0.7 days. Currently, 0.2% of the company's shares are short sold.

Elbit Systems Stock Down 6.5%

Shares of Elbit Systems stock traded down $59.14 during trading on Friday, reaching $854.06. 107,539 shares of the company traded hands, compared to its average volume of 116,952. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.41 and a quick ratio of 0.86. Elbit Systems has a 1-year low of $415.90 and a 1-year high of $1,016.06. The company has a 50 day moving average price of $843.07 and a 200-day moving average price of $745.06. The firm has a market capitalization of $37.97 billion, a PE ratio of 69.15, a P/E/G ratio of 3.48 and a beta of 0.14.

Elbit Systems (NASDAQ:ESLT - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The aerospace company reported $3.87 earnings per share for the quarter, topping the consensus estimate of $2.98 by $0.89. Elbit Systems had a net margin of 7.14% and a return on equity of 16.15%. The firm had revenue of $2.19 billion for the quarter, compared to the consensus estimate of $2.14 billion. As a group, equities research analysts expect that Elbit Systems will post 15.72 earnings per share for the current fiscal year.

Elbit Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 6th. Investors of record on Tuesday, June 23rd will be given a $1.00 dividend. The ex-dividend date of this dividend is Tuesday, June 23rd. This represents a $4.00 annualized dividend and a yield of 0.5%. Elbit Systems's dividend payout ratio (DPR) is presently 26.88%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on ESLT shares. JPMorgan Chase & Co. boosted their target price on shares of Elbit Systems from $930.00 to $950.00 and gave the company a "neutral" rating in a report on Wednesday, May 27th. Zacks Research upgraded shares of Elbit Systems from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 13th. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $950.00 target price on shares of Elbit Systems in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $742.75.

Insider Activity

In related news, EVP Haim Daniel Delmar sold 7,654 shares of Elbit Systems stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $887.40, for a total transaction of $6,792,159.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Jonathan Ariel sold 7,654 shares of the business's stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $887.40, for a total transaction of $6,792,159.60. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 69,736 shares of company stock worth $61,883,726. Company insiders own 0.84% of the company's stock.

Institutional Trading of Elbit Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ESLT. Parallel Advisors LLC raised its stake in shares of Elbit Systems by 2.0% in the first quarter. Parallel Advisors LLC now owns 883 shares of the aerospace company's stock worth $750,000 after purchasing an additional 17 shares during the last quarter. Kestra Advisory Services LLC boosted its position in shares of Elbit Systems by 0.3% during the first quarter. Kestra Advisory Services LLC now owns 6,610 shares of the aerospace company's stock valued at $5,612,000 after buying an additional 18 shares during the last quarter. Captrust Financial Advisors grew its holdings in Elbit Systems by 2.5% during the fourth quarter. Captrust Financial Advisors now owns 741 shares of the aerospace company's stock worth $428,000 after buying an additional 18 shares in the last quarter. Cardinal Capital Management raised its position in Elbit Systems by 0.3% in the 4th quarter. Cardinal Capital Management now owns 7,889 shares of the aerospace company's stock valued at $4,558,000 after buying an additional 20 shares during the last quarter. Finally, Arax Advisory Partners raised its position in Elbit Systems by 25.0% in the 4th quarter. Arax Advisory Partners now owns 150 shares of the aerospace company's stock valued at $87,000 after buying an additional 30 shares during the last quarter. 17.88% of the stock is owned by institutional investors.

About Elbit Systems

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.

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