Elbit Systems (NASDAQ:ESLT) Shares Gap Up on Strong Earnings

Key Points

• Elbit Systems Ltd. shares opened at $467.76 following a strong earnings report, with earnings per share of $3.23, exceeding expectations by $0.66.
• The company announced a quarterly dividend payment of $0.75 per share, up from the previous $0.60, reflecting a positive financial outlook.
• Multiple research firms have set new price targets for Elbit Systems, with Bank of America initiating a "buy" rating and a target price of $500.00.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $437.18, but opened at $467.76. Elbit Systems shares last traded at $466.26, with a volume of 114,349 shares changing hands.

The aerospace company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $2.57 by $0.66. Elbit Systems had a net margin of 4.95% and a return on equity of 13.49%. During the same period last year, the company earned $2.08 earnings per share.

Elbit Systems Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Shareholders of record on Tuesday, October 14th will be given a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 0.6%. This is a positive change from Elbit Systems's previous quarterly dividend of $0.60. Elbit Systems's dividend payout ratio (DPR) is 25.38%.

Analysts Set New Price Targets

Several research firms have commented on ESLT. Bank of America began coverage on shares of Elbit Systems in a research report on Thursday, July 24th. They set a "buy" rating and a $500.00 price objective for the company. Wall Street Zen lowered shares of Elbit Systems from a "strong-buy" rating to a "buy" rating in a research report on Saturday.

Institutional Investors Weigh In On Elbit Systems

Hedge funds and other institutional investors have recently made changes to their positions in the company. Activest Wealth Management purchased a new stake in shares of Elbit Systems in the second quarter valued at $28,000. Larson Financial Group LLC purchased a new stake in shares of Elbit Systems in the first quarter valued at $29,000. Traub Capital Management LLC purchased a new stake in shares of Elbit Systems in the second quarter valued at $31,000. SBI Securities Co. Ltd. raised its stake in shares of Elbit Systems by 232.6% in the first quarter. SBI Securities Co. Ltd. now owns 153 shares of the aerospace company's stock valued at $59,000 after acquiring an additional 107 shares during the period. Finally, Montag A & Associates Inc. purchased a new stake in shares of Elbit Systems in the second quarter valued at $68,000. Hedge funds and other institutional investors own 17.88% of the company's stock.

Elbit Systems Trading Up 6.2%

The firm has a market cap of $20.64 billion, a PE ratio of 59.17, a P/E/G ratio of 1.73 and a beta of 0.33. The company has a quick ratio of 0.70, a current ratio of 1.21 and a debt-to-equity ratio of 0.09. The company's 50 day moving average price is $444.19 and its two-hundred day moving average price is $392.59.

Elbit Systems Company Profile

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments.

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