Elbit Systems (NASDAQ:ESLT) Stock Price Down 5.7% - Should You Sell?

Key Points

• Elbit Systems' stock price fell by 5.7%, closing at $479.24 after trading as low as $482.39, with volume down 67% from average trading levels.
• Bank of America raised its price target on Elbit Systems shares from $500.00 to $540.00, maintaining a "buy" rating, reflecting analysts' positive outlook despite the recent drop.
• Elbit Systems recently declared an increased quarterly dividend of $0.75 per share, representing a yield of 0.6%, up from its previous dividend of $0.60.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report)'s share price dropped 5.7% on Wednesday . The stock traded as low as $482.39 and last traded at $479.24. Approximately 35,154 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 106,111 shares. The stock had previously closed at $507.95.

Analysts Set New Price Targets

ESLT has been the subject of several research reports. Wall Street Zen upgraded shares of Elbit Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 30th. Bank of America boosted their price target on shares of Elbit Systems from $500.00 to $540.00 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. One analyst has rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $540.00.

Elbit Systems Stock Down 0.5%

The company has a quick ratio of 0.77, a current ratio of 1.29 and a debt-to-equity ratio of 0.06. The firm has a market cap of $21.69 billion, a PE ratio of 55.39, a P/E/G ratio of 1.73 and a beta of 0.37. The firm's 50 day moving average is $468.69 and its 200-day moving average is $426.45.

Elbit Systems (NASDAQ:ESLT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 13th. The aerospace company reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $2.57 by $0.66. The company had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.89 billion. Elbit Systems had a net margin of 5.35% and a return on equity of 14.29%. During the same quarter last year, the firm posted $2.08 earnings per share. As a group, equities research analysts expect that Elbit Systems Ltd. will post 8.05 earnings per share for the current fiscal year.

Elbit Systems Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Tuesday, October 14th will be given a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, October 14th. This is an increase from Elbit Systems's previous quarterly dividend of $0.60. This represents a $3.00 annualized dividend and a dividend yield of 0.6%. Elbit Systems's dividend payout ratio (DPR) is currently 22.70%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ESLT. Northern Trust Corp grew its holdings in Elbit Systems by 301.1% during the 4th quarter. Northern Trust Corp now owns 7,798 shares of the aerospace company's stock worth $2,012,000 after acquiring an additional 5,854 shares in the last quarter. Nuveen Asset Management LLC grew its stake in shares of Elbit Systems by 4.2% in the 4th quarter. Nuveen Asset Management LLC now owns 71,799 shares of the aerospace company's stock worth $18,779,000 after purchasing an additional 2,892 shares during the last quarter. Squarepoint Ops LLC grew its stake in shares of Elbit Systems by 105.8% in the 4th quarter. Squarepoint Ops LLC now owns 809 shares of the aerospace company's stock worth $209,000 after purchasing an additional 14,796 shares during the last quarter. Voloridge Investment Management LLC purchased a new position in shares of Elbit Systems in the fourth quarter worth approximately $1,479,000. Finally, Public Employees Retirement System of Ohio increased its position in shares of Elbit Systems by 1.8% in the fourth quarter. Public Employees Retirement System of Ohio now owns 3,938 shares of the aerospace company's stock worth $1,031,000 after acquiring an additional 69 shares in the last quarter. 17.88% of the stock is owned by institutional investors and hedge funds.

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.