Spirit AeroSystems (NYSE:SPR) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Spirit AeroSystems (NYSE:SPR) from a hold rating to a sell rating in a research note released on Monday morning, Zacks.com reports. The brokerage currently has $84.00 price objective on the aerospace company’s stock.

According to Zacks, “Spirit AeroSystems is one of the largest independent non-OEM aircraft parts designers. Both commercial and defense aerospace markets offer immense growth opportunities for Spirit AeroSystems. Accelerated defense-related activities within the United States have been contributing to its Fuselage Systems unit’s top-line growth. The pending Asco acquisition will expand the company’s ability to offer more Airbus A320 and A350 wings as well as structures for F-35 jets. However, it operates in a highly competitive market. Moreover, the uncertainty revolving around Boeing 737 forced Spirit AeroSystems to detain the 2019 guidance for now. The company also underperformed the industry in the past six months. Also, a delay related to the Asco transaction is further escalating Spirit AeroSystems' expenses.”

A number of other research firms have also recently weighed in on SPR. SunTrust Banks lowered their price objective on shares of Broadcom to $307.00 and set a buy rating for the company in a research report on Friday, June 14th. Barclays reaffirmed a buy rating and set a $138.00 price objective on shares of EOG Resources in a research report on Wednesday, March 13th. ValuEngine cut shares of Zumiez from a hold rating to a sell rating in a research report on Tuesday, July 2nd. Cowen reaffirmed a buy rating and set a $28.00 price objective on shares of Intra-Cellular Therapies in a research report on Monday. Finally, Jefferies Financial Group reaffirmed a buy rating on shares of Extended Stay America in a research report on Tuesday, July 2nd. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and eight have assigned a buy rating to the company. The stock currently has a consensus rating of Hold and an average price target of $97.66.

Spirit AeroSystems stock opened at $75.16 on Monday. The company has a 50 day moving average price of $80.76. Spirit AeroSystems has a 1-year low of $64.48 and a 1-year high of $100.34. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.39 and a current ratio of 1.95. The stock has a market cap of $7.80 billion, a PE ratio of 12.01, a price-to-earnings-growth ratio of 1.46 and a beta of 1.28.

Spirit AeroSystems (NYSE:SPR) last posted its quarterly earnings results on Wednesday, May 1st. The aerospace company reported $1.68 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.01. Spirit AeroSystems had a net margin of 8.78% and a return on equity of 63.36%. The business had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.93 billion. During the same quarter in the prior year, the company posted $1.10 EPS. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. On average, research analysts forecast that Spirit AeroSystems will post 6.98 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 8th. Investors of record on Monday, June 17th were given a dividend of $0.12 per share. The ex-dividend date was Friday, June 14th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.64%. Spirit AeroSystems’s payout ratio is currently 7.67%.

In related news, Director Robert D. Johnson sold 500 shares of the stock in a transaction that occurred on Monday, June 3rd. The shares were sold at an average price of $79.95, for a total transaction of $39,975.00. Following the completion of the transaction, the director now owns 2,925 shares of the company’s stock, valued at approximately $233,853.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.84% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Redwood Investment Management LLC purchased a new position in Spirit AeroSystems in the 1st quarter valued at approximately $2,740,000. Great West Life Assurance Co. Can boosted its position in Spirit AeroSystems by 0.4% in the 4th quarter. Great West Life Assurance Co. Can now owns 29,127 shares of the aerospace company’s stock valued at $2,002,000 after buying an additional 129 shares during the period. Valueworks LLC boosted its position in Spirit AeroSystems by 5.6% in the 4th quarter. Valueworks LLC now owns 71,745 shares of the aerospace company’s stock valued at $5,172,000 after buying an additional 3,795 shares during the period. Neuberger Berman Group LLC boosted its position in Spirit AeroSystems by 1.8% in the 1st quarter. Neuberger Berman Group LLC now owns 629,145 shares of the aerospace company’s stock valued at $57,582,000 after buying an additional 11,126 shares during the period. Finally, Robeco Institutional Asset Management B.V. boosted its position in Spirit AeroSystems by 323.1% in the 1st quarter. Robeco Institutional Asset Management B.V. now owns 82,918 shares of the aerospace company’s stock valued at $7,589,000 after buying an additional 63,319 shares during the period. 96.55% of the stock is owned by institutional investors.

Spirit AeroSystems Company Profile

Spirit AeroSystems Holdings, Inc designs, manufactures, and supplies commercial aero structures in the United States and internationally. The company operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and related spares, as well as maintenance, repairs, and overhaul (MRO) services.

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