Elbit Systems (NASDAQ:ESLT) Shares Gap Down – What’s Next?

Elbit Systems Ltd. (NASDAQ:ESLT) gapped down before the market opened on Tuesday . The stock had previously closed at $846.04, but opened at $795.00. Elbit Systems shares last traded at $790.6570, with a volume of 43,551 shares trading hands.

Key Elbit Systems News

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Results exceeded expectations: Second-quarter non-GAAP EPS was $4.14, versus the $3.69 consensus estimate, while revenue rose 15.9% year over year to approximately $2.29 billion, ahead of the $2.25 billion forecast. EPS increased from $3.23 a year earlier. Elbit Systems Reports Second Quarter 2026 Results
• Positive Sentiment: Record backlog supports long-term visibility: Orders backlog reached approximately $32 billion, up 34% year over year, driven largely by international demand, particularly in Europe. The backlog provides a substantial base for future revenue growth, although delivery capacity remains a constraint. Elbit Systems Record Backlog Makes the Pullback a Buy
• Positive Sentiment: Cash generation and financial flexibility improved: Free cash flow more than doubled from the prior year, and Elbit Systems maintained a net cash position. This supports continued research and development, capacity expansion and internally funded growth.
• Neutral Sentiment: Dividend declared: The company announced a quarterly dividend of $1.00 per share, payable October 26 to shareholders of record October 13. The roughly 0.5% annualized yield is supportive but unlikely to be a major stock catalyst.
• Neutral Sentiment: Limited short-interest signal: Reported short interest was effectively zero, offering little evidence that short covering or bearish positioning is driving the latest move. Analyst targets cited in the coverage range from $880 to $950, above the recent trading level.
• Negative Sentiment: Post-earnings concerns overshadowed the beat: Aerospace revenue fell 8% because of project mix and weaker European training and simulation sales. Investors also focused on a higher effective tax rate of 16.4%, increased R&D and an internally funded capital investment plan of about $300 million, all of which could pressure near-term margins and cash flow. Elbit Systems Slides Despite Q2 Beat as Investors Weigh Aerospace Weakness and Higher Spending
• Negative Sentiment: Valuation leaves limited room for disappointment: With a reported price-to-earnings ratio above 60, the stock is priced for strong execution. Capacity constraints, operational delivery risks and recent insider selling may therefore be contributing to profit-taking despite the robust outlook.

Analyst Upgrades and Downgrades

ESLT has been the subject of several research analyst reports. Zacks Research downgraded shares of Elbit Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 24th. JPMorgan Chase & Co. increased their price target on shares of Elbit Systems from $930.00 to $950.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 27th. Morgan Stanley set a $845.00 price target on Elbit Systems in a research note on Wednesday, July 15th. Jefferies Financial Group lowered their price objective on Elbit Systems from $950.00 to $880.00 and set a “hold” rating for the company in a report on Wednesday, June 24th. Finally, Weiss Ratings cut Elbit Systems from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. One analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Elbit Systems currently has a consensus rating of “Hold” and an average target price of $803.75.

Elbit Systems Stock Up 0.4%

The company has a market capitalization of $34.65 billion, a price-to-earnings ratio of 58.74, a PEG ratio of 3.29 and a beta of 0.17. The stock’s fifty day simple moving average is $794.53 and its two-hundred day simple moving average is $809.34. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.41 and a quick ratio of 0.86.

Elbit Systems (NASDAQ:ESLT) last posted its quarterly earnings results on Tuesday, August 11th. The aerospace company reported $4.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.69 by $0.45. Elbit Systems had a net margin of 7.44% and a return on equity of 16.94%. The company had revenue of $2.29 billion for the quarter, compared to the consensus estimate of $2.25 billion. On average, sell-side analysts predict that Elbit Systems Ltd. will post 15.3 earnings per share for the current fiscal year.

Elbit Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Tuesday, October 13th will be issued a $1.00 dividend. The ex-dividend date of this dividend is Tuesday, October 13th. This represents a $4.00 dividend on an annualized basis and a yield of 0.5%. Elbit Systems’s dividend payout ratio (DPR) is currently 26.96%.

Hedge Funds Weigh In On Elbit Systems

Institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada boosted its position in Elbit Systems by 98.9% during the 1st quarter. Royal Bank of Canada now owns 2,464 shares of the aerospace company’s stock valued at $946,000 after purchasing an additional 1,225 shares during the period. AQR Capital Management LLC bought a new position in Elbit Systems during the 1st quarter worth $353,000. NewEdge Advisors LLC increased its position in Elbit Systems by 3,461.1% in the first quarter. NewEdge Advisors LLC now owns 641 shares of the aerospace company’s stock worth $246,000 after buying an additional 623 shares during the period. Goldman Sachs Group Inc. increased its position in Elbit Systems by 33.7% in the first quarter. Goldman Sachs Group Inc. now owns 135,106 shares of the aerospace company’s stock worth $51,837,000 after buying an additional 34,049 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Elbit Systems by 7.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 16,521 shares of the aerospace company’s stock valued at $6,339,000 after buying an additional 1,191 shares during the last quarter. 17.88% of the stock is owned by institutional investors.

Elbit Systems Company Profile

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.