Elbit Systems (NASDAQ:ESLT) Shares Gap Down - Should You Sell?

Key Points

• Price gap down: Elbit Systems shares opened sharply lower, gapping from $902.58 to $867.02 and last trading around $877.52 on a volume of about 82,614 shares.
• Mixed analyst view with low target: Analysts are split (two Buy, three Hold) giving a consensus rating of "Hold" and a consensus price target of $550.33, well below the current share price.
• Valuation and technicals: The stock trades at a high P/E of 89.4 with a $39.2B market cap, low leverage (debt/equity 0.06), and its 50‑ and 200‑day moving averages ($715.55 and $573.65) remain well below the current price.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $902.58, but opened at $867.02. Elbit Systems shares last traded at $877.5150, with a volume of 82,614 shares trading hands.

Wall Street Analyst Weigh In

ESLT has been the topic of several research analyst reports. Zacks Research lowered shares of Elbit Systems from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, November 12th. Morgan Stanley initiated coverage on shares of Elbit Systems in a report on Thursday, December 11th. They set an "equal weight" rating and a $531.00 price objective on the stock. Weiss Ratings reissued a "buy (b)" rating on shares of Elbit Systems in a research report on Monday, December 29th. Wall Street Zen upgraded Elbit Systems from a "hold" rating to a "buy" rating in a research note on Saturday, January 17th. Finally, JPMorgan Chase & Co. upped their price target on Elbit Systems from $530.00 to $580.00 and gave the stock a "neutral" rating in a research note on Friday, December 19th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Elbit Systems presently has a consensus rating of "Hold" and a consensus target price of $550.33.

Elbit Systems Stock Performance

The stock has a market cap of $39.19 billion, a price-to-earnings ratio of 89.42, a P/E/G ratio of 2.84 and a beta of 0.22. The company's fifty day simple moving average is $715.55 and its two-hundred day simple moving average is $573.65. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.32 and a quick ratio of 0.76.

Institutional Trading of Elbit Systems

Several institutional investors have recently made changes to their positions in the company. USA Financial Formulas purchased a new position in Elbit Systems during the third quarter worth about $26,000. CoreCap Advisors LLC purchased a new stake in Elbit Systems in the 4th quarter valued at about $26,000. Traub Capital Management LLC bought a new position in shares of Elbit Systems during the 2nd quarter worth approximately $31,000. Financial Consulate Inc. purchased a new position in shares of Elbit Systems in the 3rd quarter worth approximately $60,000. Finally, Wexford Capital LP bought a new position in shares of Elbit Systems in the third quarter valued at approximately $63,000. Institutional investors own 17.88% of the company's stock.

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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