Orbital ATK, Inc. (OA) Downgraded to “Sell” at Zacks Investment Research
Orbital ATK, Inc. (NYSE:OA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Shares of Orbital ATK have underperformed the Zacks categorized Aerospace-Defense Equipment industry over the last three months. Orbital ATK’s reliance on third parties for raw materials, increasing cost of raw materials and supply disruptions can adversely impact its results. Orbital ATK is highly vulnerable to market risks from changes in foreign currency exchange rates which negatively impactits profitability. Currency fluctuations may impact product demand and the prices Orbital ATK pays for the materials. However, Orbital ATK’s diverse product offering and its involvement in major development and production programs will continue to swell its order book.”
Other research analysts have also recently issued research reports about the stock. Cowen and Company reiterated a “buy” rating on shares of Orbital ATK in a research report on Thursday, May 11th. Jefferies Group LLC reiterated a “buy” rating and set a $115.00 price objective on shares of Orbital ATK in a research report on Wednesday, April 12th. BidaskClub upgraded shares of Orbital ATK from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, Goldman Sachs Group, Inc. (The) reiterated a “neutral” rating and set a $106.00 price objective on shares of Orbital ATK in a research report on Monday, June 5th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and nine have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $103.28.
Shares of Orbital ATK (NYSE OA) traded down 0.41% during midday trading on Tuesday, hitting $100.71. 277,357 shares of the stock were exchanged. The firm has a 50-day moving average of $99.34 and a 200-day moving average of $94.73. Orbital ATK has a 1-year low of $67.04 and a 1-year high of $105.09. The company has a market capitalization of $5.81 billion, a P/E ratio of 20.76 and a beta of -0.32.
Orbital ATK (NYSE:OA) last posted its quarterly earnings data on Thursday, May 11th. The aerospace company reported $1.23 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.37 by $0.14. Orbital ATK had a net margin of 5.86% and a return on equity of 15.34%. The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter last year, the firm earned $1.44 EPS. The company’s revenue was up 2.7% on a year-over-year basis. On average, equities analysts expect that Orbital ATK will post $6.04 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, June 22nd. Stockholders of record on Wednesday, June 7th were paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.27%. The ex-dividend date of this dividend was Monday, June 5th.
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In other news, VP Thomas E. Mccabe sold 3,533 shares of the business’s stock in a transaction on Thursday, June 1st. The shares were sold at an average price of $103.24, for a total transaction of $364,746.92. Following the completion of the sale, the vice president now directly owns 8,138 shares of the company’s stock, valued at $840,167.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Thomas E. Mccabe sold 1,922 shares of the business’s stock in a transaction on Friday, April 28th. The shares were sold at an average price of $99.00, for a total transaction of $190,278.00. Following the sale, the vice president now directly owns 5,539 shares of the company’s stock, valued at $548,361. The disclosure for this sale can be found here. Insiders have sold 16,994 shares of company stock valued at $1,738,885 over the last three months. Insiders own 1.20% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. Capstone Asset Management Co. raised its stake in shares of Orbital ATK by 4.0% in the second quarter. Capstone Asset Management Co. now owns 3,371 shares of the aerospace company’s stock worth $332,000 after buying an additional 130 shares in the last quarter. Fox Run Management L.L.C. bought a new stake in shares of Orbital ATK during the second quarter worth about $443,000. Leith Wheeler Investment Counsel Ltd. raised its stake in shares of Orbital ATK by 21.4% in the second quarter. Leith Wheeler Investment Counsel Ltd. now owns 14,370 shares of the aerospace company’s stock worth $1,413,000 after buying an additional 2,530 shares in the last quarter. Clearbridge Investments LLC raised its stake in shares of Orbital ATK by 48.3% in the first quarter. Clearbridge Investments LLC now owns 1,091,495 shares of the aerospace company’s stock worth $106,967,000 after buying an additional 355,311 shares in the last quarter. Finally, Point72 Europe London LLP raised its stake in shares of Orbital ATK by 28.3% in the first quarter. Point72 Europe London LLP now owns 54,371 shares of the aerospace company’s stock worth $5,328,000 after buying an additional 12,000 shares in the last quarter. 86.52% of the stock is owned by hedge funds and other institutional investors.
Orbital ATK Company Profile
Orbital ATK, Inc is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition.
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