Saab (OTCMKTS:SAABY) Shares Gap Up – Still a Buy?

Saab AB – Unsponsored ADR (OTCMKTS:SAABY)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $30.40, but opened at $33.00. Saab shares last traded at $32.81, with a volume of 11,736 shares.

Key Stores Impacting Saab

Here are the key news stories impacting Saab this week:

• Neutral Sentiment: Multiple entertainment and unrelated brand stories referencing “Saab” (mostly the film “The Raja Saab” and fashion/heritage Saab car pieces) are appearing in the newsflow; these do not pertain to Saab AB’s defence business and are unlikely to affect fundamentals. Examples: coverage of The Raja Saab premiere and reviews. Read More.
• Neutral Sentiment: Additional entertainment pieces around The Raja Saab (advance bookings, censor cuts, cast comments) and legacy Saab car stories (historical pieces on the Saab 99/95) are headline noise, not corporate news for Saab AB. Read More.
• Neutral Sentiment: Fashion/brand coverage (Elie Saab features) is similarly unrelated to the Swedish defence contractor’s outlook. These items can increase general name recognition but do not drive SAABY’s financials. Read More.
• Negative Sentiment: Analyst/coverage risk: a Seeking Alpha piece argues the “defense boom” is largely priced in and downgrades the buy case — this kind of narrative can trigger profit-taking at stretched multiples and near-term weakness absent fresh contract wins or better-than-expected guidance. Key takeaway: valuation concerns and a saturated positive outlook are the primary near-term catalyst for downward pressure. Read More.

Wall Street Analysts Forecast Growth

Separately, Barclays raised Saab to a “strong sell” rating in a research note on Monday, September 8th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Saab has an average rating of “Hold”.

Saab Stock Performance

The company has a current ratio of 1.33, a quick ratio of 0.83 and a debt-to-equity ratio of 0.27. The firm’s 50-day simple moving average is $27.10 and its 200-day simple moving average is $27.23. The company has a market capitalization of $35.03 billion, a PE ratio of 53.20 and a beta of -0.19.

Saab (OTCMKTS:SAABY) last posted its quarterly earnings results on Friday, October 24th. The company reported $0.09 earnings per share (EPS) for the quarter. The business had revenue of $1.67 billion for the quarter. Saab had a return on equity of 13.23% and a net margin of 7.17%.

Saab Company Profile

Saab AB is a Sweden-based aerospace and defense company that develops, manufactures and supplies products, services and solutions for military and civil security markets. Founded in 1937 as an aircraft manufacturer, the company has diversified into areas including combat aircraft, airborne surveillance, radar and sensor systems, missiles and weapons, naval vessels and underwater systems, as well as command-and-control, training and simulation and cybersecurity solutions.

In aeronautics, Saab is best known for its Gripen family of multi-role fighter aircraft and for airborne surveillance solutions that integrate radars and sensors.