L-3 Communications Holdings Inc. (LLL) Cut to “Hold” at Zacks Investment Research
L-3 Communications Holdings Inc. (NYSE:LLL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “L-3 Communications is a pure-play provider of defense electronics and highly engineered products and services. Its strategy of gradually transforming its business portfolio to focus on defense electronics, communications and ISR markets will likely boost sales and margins going forward. On a global scale, instead of guns and ammunition, there is a growing demand for sensors, missiles and next-generation ISR technologies. This should definitely help defense players like L-3 Communications, agile enough to cater to changing demand, to witness huge gains ahead. Again, shareholder friendly moves will serve L-3 Communications well over the long haul. However, these positives are partly offset by its over dependence on government orders and budget volatility in the U.S.”
Several other analysts have also recently weighed in on the stock. Jefferies Group upped their price objective on shares of L-3 Communications Holdings from $135.00 to $150.00 and gave the stock a “hold” rating in a research note on Friday, July 29th. Deutsche Bank AG reaffirmed a “buy” rating and set a $160.00 price objective on shares of L-3 Communications Holdings in a research note on Monday, August 15th. Robert W. Baird started coverage on shares of L-3 Communications Holdings in a research note on Wednesday, October 5th. They set an “outperform” rating and a $184.00 price objective on the stock. Citigroup Inc. upped their price objective on shares of L-3 Communications Holdings from $174.00 to $180.00 and gave the stock a “buy” rating in a research note on Monday, October 10th. Finally, JPMorgan Chase & Co. raised shares of L-3 Communications Holdings from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $158.00 to $182.00 in a research note on Thursday, August 25th. Four investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $157.46.
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L-3 Communications Holdings (NYSE:LLL) traded down 0.11% on Wednesday, hitting $149.05. The company’s stock had a trading volume of 132,793 shares. The company’s market capitalization is $11.51 billion. The company has a 50 day moving average price of $149.55 and a 200-day moving average price of $142.63. L-3 Communications Holdings has a 1-year low of $105.88 and a 1-year high of $154.50.
L-3 Communications Holdings (NYSE:LLL) last issued its quarterly earnings data on Thursday, July 28th. The company reported $1.88 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.69 by $0.19. The firm had revenue of $2.66 billion for the quarter, compared to analysts’ expectations of $2.49 billion. L-3 Communications Holdings had a negative net margin of 0.85% and a positive return on equity of 14.37%. The company’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.36 earnings per share. On average, equities analysts forecast that L-3 Communications Holdings will post $7.88 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Thursday, November 17th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.88%. L-3 Communications Holdings’s dividend payout ratio (DPR) is presently -254.55%.
In other L-3 Communications Holdings news, Chairman Michael T. Strianese sold 100,000 shares of the stock in a transaction on Wednesday, August 3rd. The shares were sold at an average price of $149.64, for a total value of $14,964,000.00. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Arthur L. Simon sold 3,600 shares of the stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $149.00, for a total transaction of $536,400.00. The disclosure for this sale can be found here. 3.30% of the stock is currently owned by company insiders.
A number of large investors have recently bought and sold shares of the company. Tuttle Tactical Management LLC purchased a new stake in L-3 Communications Holdings during the second quarter valued at $107,000. PineBridge Investments L.P. raised its stake in L-3 Communications Holdings by 79.7% in the second quarter. PineBridge Investments L.P. now owns 1,003 shares of the company’s stock valued at $147,000 after buying an additional 445 shares during the period. Mizuho Asset Management Co. Ltd. raised its stake in L-3 Communications Holdings by 77.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,008 shares of the company’s stock valued at $148,000 after buying an additional 439 shares during the period. Global X Management Co. LLC raised its stake in L-3 Communications Holdings by 114.8% in the second quarter. Global X Management Co. LLC now owns 1,205 shares of the company’s stock valued at $177,000 after buying an additional 644 shares during the period. Finally, Telos Capital Management Inc. purchased a new stake in L-3 Communications Holdings during the second quarter valued at $201,000. Institutional investors own 80.46% of the company’s stock.
L-3 Communications Holdings Company Profile
L-3 Communications Holdings, Inc (L-3 Holdings) operates through its operating subsidiary L-3 Communications (L-3). The Company operates through three segments: Electronic Systems, which provides a range of products and services, including components, products, subsystems, systems and related services to military and commercial customers; Aerospace Systems, which provides products and services for the Intelligence, Surveillance and Reconnaissance (ISR) market, specializing in signals intelligence (SIGINT) and multi-intelligence platforms, and Communication Systems, which provides network and communication systems, secure communications products, radio frequency components, satellite communication terminals, and space, microwave and telemetry products.
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