Zacks Investment Research Downgrades Esterline Technologies (ESL) to Strong Sell

Esterline Technologies (NYSE:ESL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday.

According to Zacks, “Esterline Technologies Corporation designs, manufactures, and markets engineered products and systems primarily for aerospace and defense customers in the United States and internationally. The Company designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. The Company serves aerospace and defense customers. The Company’s Avionics & Controls business segment includes avionics systems, control and communication systems, and interface technologies capabilities. The Company’s Sensors & Systems business segment includes power systems, connection technologies and advanced sensors capabilities. The Company’s Advanced Materials business segment includes engineered materials and defense technologies capabilities. It designs and manufactures ruggedized military personal communication equipment, primarily headsets, handsets and field communications. “

A number of other brokerages also recently issued reports on ESL. Credit Suisse Group downgraded shares of Esterline Technologies from a “neutral” rating to an “underperform” rating in a research report on Friday, January 12th. SunTrust Banks downgraded shares of Esterline Technologies from a “buy” rating to a “hold” rating and set a $106.00 price objective for the company. in a research report on Friday, November 10th. ValuEngine raised shares of Esterline Technologies from a “hold” rating to a “buy” rating in a research report on Friday, December 1st. Canaccord Genuity reissued a “hold” rating on shares of Esterline Technologies in a research report on Friday, October 13th. Finally, Drexel Hamilton downgraded shares of Esterline Technologies from a “buy” rating to a “hold” rating in a research report on Friday, November 10th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and one has given a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $80.17.

Shares of Esterline Technologies (ESL) traded down $0.50 during mid-day trading on Tuesday, hitting $75.20. 142,544 shares of the stock were exchanged, compared to its average volume of 232,760. Esterline Technologies has a 12-month low of $68.30 and a 12-month high of $102.70. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.03 and a current ratio of 3.25. The company has a market cap of $2,260.00, a P/E ratio of 18.12, a price-to-earnings-growth ratio of 1.63 and a beta of 1.43.

Esterline Technologies (NYSE:ESL) last issued its quarterly earnings data on Thursday, November 9th. The aerospace company reported $1.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.26). Esterline Technologies had a net margin of 5.86% and a return on equity of 7.68%. The business had revenue of $531.50 million for the quarter, compared to the consensus estimate of $540.55 million. During the same period in the previous year, the firm earned $1.96 EPS. The company’s revenue was down 2.3% on a year-over-year basis. sell-side analysts expect that Esterline Technologies will post 3.9 earnings per share for the current fiscal year.

In other news, Director Nils Larsen bought 1,450 shares of the company’s stock in a transaction that occurred on Tuesday, November 14th. The stock was bought at an average price of $70.51 per share, with a total value of $102,239.50. Following the acquisition, the director now owns 2,690 shares of the company’s stock, valued at approximately $189,671.90. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Chairman Curtis C. Reusser bought 2,900 shares of the company’s stock in a transaction that occurred on Tuesday, November 14th. The stock was purchased at an average cost of $70.00 per share, with a total value of $203,000.00. Following the acquisition, the chairman now directly owns 39,199 shares in the company, valued at approximately $2,743,930. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 6,800 shares of company stock valued at $479,015 and sold 268,290 shares valued at $25,452,666. Corporate insiders own 1.30% of the company’s stock.

A number of institutional investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. lifted its stake in Esterline Technologies by 13.9% in the 2nd quarter. PNC Financial Services Group Inc. now owns 1,092 shares of the aerospace company’s stock worth $104,000 after purchasing an additional 133 shares in the last quarter. Flinton Capital Management LLC lifted its stake in Esterline Technologies by 57.4% in the 2nd quarter. Flinton Capital Management LLC now owns 1,360 shares of the aerospace company’s stock worth $129,000 after purchasing an additional 496 shares in the last quarter. Riverhead Capital Management LLC lifted its stake in Esterline Technologies by 61.8% in the 2nd quarter. Riverhead Capital Management LLC now owns 2,265 shares of the aerospace company’s stock worth $215,000 after purchasing an additional 865 shares in the last quarter. Capstone Investment Advisors Netherlands B.V. purchased a new stake in Esterline Technologies in the 2nd quarter worth $226,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in Esterline Technologies in the 2nd quarter worth $285,000. 92.05% of the stock is owned by institutional investors.

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About Esterline Technologies

Esterline Technologies Corporation is a specialized manufacturing company. The Company designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials.

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