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

Saab AB – Unsponsored ADR (OTCMKTS:SAABY) shares gapped up before the market opened on Thursday . The stock had previously closed at $28.78, but opened at $30.26. Saab shares last traded at $30.43, with a volume of 20,046 shares changing hands.

Saab News Roundup

Here are the key news stories impacting Saab this week:

• Positive Sentiment: Canada has opened talks to purchase Saab’s GlobalEye surveillance aircraft, with Prime Minister Mark Carney indicating discussions are underway to bolster Canada’s military capabilities. Canada in Talks to Acquire Saab GlobalEye Aircraft, PM Carney Says — Update
• Positive Sentiment: Multiple reports say Canada has selected Saab as the preferred supplier for its future AEW&C capability, suggesting Saab is close to securing a meaningful defense procurement win. Saab AB: Canada Engages Saab As Preferred Supplier Of Future Aew&c Capability
• Positive Sentiment: Coverage from defense outlets also says Saab’s GlobalEye was chosen for Canada’s AEW&C program, reinforcing expectations for a new export contract and potential follow-on opportunities. Saab GlobalEye Wins Canadian Selection For AEW&C
• Neutral Sentiment: Short interest in Saab rose sharply in mid-May, but the absolute level remains very small, so this appears more like a market statistic than a major fundamental driver right now.

Analyst Ratings Changes

Separately, Citigroup upgraded Saab from a “strong sell” rating to a “hold” rating in a research report on Monday, May 18th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce”.

Saab Trading Up 7.1%

The company has a current ratio of 1.28, a quick ratio of 0.84 and a debt-to-equity ratio of 0.29. The company has a 50-day simple moving average of $31.40 and a 200 day simple moving average of $32.06. The firm has a market cap of $32.99 billion, a PE ratio of 39.51 and a beta of -0.14.

Saab (OTCMKTS:SAABY) last released its quarterly earnings data on Thursday, April 23rd. The company reported $0.15 EPS for the quarter. The business had revenue of $2.10 billion for the quarter. Saab had a return on equity of 15.43% and a net margin of 7.87%.

About Saab

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.