Elbit Systems (NASDAQ:ESLT) Shares Gap Up After Earnings Beat

Elbit Systems Ltd. (NASDAQ:ESLT)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $767.82, but opened at $857.49. Elbit Systems shares last traded at $839.48, with a volume of 85,837 shares traded.

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 return on equity of 16.38% and a net margin of 7.14%.The firm had revenue of $2.19 billion during the quarter, compared to analysts’ expectations of $2.14 billion.

Elbit Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, July 6th. Stockholders of record on Tuesday, June 23rd will be issued a dividend of $1.00 per share. The ex-dividend date is Tuesday, June 23rd. This represents a $4.00 annualized dividend and a dividend yield of 0.4%. Elbit Systems’s dividend payout ratio is 29.31%.

Key Headlines Impacting Elbit Systems

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Elbit Systems announced a new $350 million contract to upgrade main battle tanks for an international customer, adding to its already strong near-term order momentum. Elbit Systems Awarded a $350 Million Contract for Tank Upgrades from an International Customer
• Positive Sentiment: Recent reporting highlighted that Elbit beat first-quarter expectations, posted record revenue, and grew its backlog to roughly $30.2 billion, which improves visibility for future sales and earnings. Elbit Systems jumps after earnings beat as defense demand drives record backlog
• Positive Sentiment: JPMorgan raised its price target on ESLT to $950 from $930, signaling continued analyst confidence even though the rating remained neutral. Benzinga
• Neutral Sentiment: Elbit Systems was mentioned in broader drone-tech and aerospace industry coverage, underscoring investor interest in the defense technology space but not adding a clear new catalyst. 3 Drone Tech Stocks to Watch Amid Accelerated Adoption Trends
• Neutral Sentiment: The company’s short-interest update showed no meaningful shares outstanding in the reported period, so it does not appear to be a major driver of the stock today.
• Neutral Sentiment: Elbit also declared a quarterly dividend, which is supportive for income investors but unlikely to be the main reason for the move. Dividend announcement included in company release

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ESLT. Jefferies Financial Group restated a “hold” rating and issued a $950.00 price objective on shares of Elbit Systems in a report on Wednesday. JPMorgan Chase & Co. increased their price objective on Elbit Systems from $930.00 to $950.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Zacks Research upgraded Elbit Systems from a “hold” rating to a “strong-buy” rating in a report on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Elbit Systems presently has an average rating of “Moderate Buy” and an average price target of $742.75.

Insider Activity at Elbit Systems

In other news, EVP Jonathan Ariel sold 7,654 shares of the stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $887.40, for a total transaction of $6,792,159.60. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Haim Daniel Delmar sold 7,654 shares of the firm’s stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $887.40, for a total transaction of $6,792,159.60. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 69,736 shares of company stock worth $61,883,726. 0.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Elbit Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Elbit Systems by 4.5% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,619,783 shares of the aerospace company’s stock worth $1,351,958,000 after purchasing an additional 69,165 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Elbit Systems by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 998,267 shares of the aerospace company’s stock worth $573,131,000 after purchasing an additional 13,406 shares during the last quarter. Van ECK Associates Corp increased its stake in shares of Elbit Systems by 3,162.0% during the 3rd quarter. Van ECK Associates Corp now owns 648,104 shares of the aerospace company’s stock worth $330,404,000 after purchasing an additional 628,236 shares during the last quarter. Y.D. More Investments Ltd increased its stake in shares of Elbit Systems by 3.0% during the 4th quarter. Y.D. More Investments Ltd now owns 618,325 shares of the aerospace company’s stock worth $356,345,000 after purchasing an additional 18,289 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Elbit Systems by 2.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 483,842 shares of the aerospace company’s stock worth $246,121,000 after purchasing an additional 12,003 shares during the last quarter. Hedge funds and other institutional investors own 17.88% of the company’s stock.

Elbit Systems Price Performance

The firm has a market capitalization of $39.75 billion, a PE ratio of 72.40, a price-to-earnings-growth ratio of 3.58 and a beta of 0.14. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.77 and a current ratio of 1.29. The business’s 50 day moving average is $856.09 and its two-hundred day moving average is $715.61.

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.