Zacks Investment Research downgraded shares of Aerojet Rocketdyne (NYSE:AJRD) from a hold rating to a sell rating in a research report released on Monday.
According to Zacks, “Of late, Aerojet Rocketdyne is facing increased competition from entrepreneurs such as SpaceX and Blue Origin, which in turn can hurt its top-line performance. Aerojet Rocketdyne is subject to interest rate risk related to the issuance of debt. Notably, a material rise in long-term interest rates is a major risk for capital intensive stocks like Aerojet Rocketdyne. This is because defense players like this company need to rely heavily on capital markets for access to funds and make the necessary investments in innovations and productions of high-end defense equipments. Moreover, with the current U.S. economy being in favor of expanding interest rate, the credit market may not turn out to be much favorable for Aerojet Rocketdyne. However, with an experience of supplying some of the world’s most technologically advanced propulsion systems for over 70 years, Aerojet Rocketdyne successfully serves a broad range of customers.”
Get Aerojet Rocketdyne alerts:Several other research analysts have also commented on the company. SunTrust Banks raised their price objective on Aerojet Rocketdyne to $45.00 and gave the company a buy rating in a research report on Wednesday, February 20th. Credit Suisse Group raised Aerojet Rocketdyne from a neutral rating to an outperform rating in a research report on Monday, January 14th. Finally, ValuEngine raised Aerojet Rocketdyne from a hold rating to a buy rating in a research report on Thursday, November 1st. One investment analyst has rated the stock with a sell rating and three have assigned a buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus price target of $45.00.
NYSE:AJRD traded down $0.20 during mid-day trading on Monday, hitting $37.05. The company had a trading volume of 401 shares, compared to its average volume of 886,893. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.41 and a quick ratio of 1.24. Aerojet Rocketdyne has a 1 year low of $25.06 and a 1 year high of $40.99. The firm has a market capitalization of $2.89 billion, a PE ratio of 19.17, a price-to-earnings-growth ratio of 4.94 and a beta of 0.80.
Aerojet Rocketdyne (NYSE:AJRD) last released its quarterly earnings data on Tuesday, February 19th. The aerospace company reported $0.33 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.01). Aerojet Rocketdyne had a net margin of 7.24% and a return on equity of 36.16%. The company had revenue of $437.90 million during the quarter, compared to analysts’ expectations of $512.37 million. During the same period last year, the business earned $0.23 earnings per share. The company’s revenue for the quarter was down 17.1% compared to the same quarter last year. Equities analysts anticipate that Aerojet Rocketdyne will post 1.33 EPS for the current year.
Several institutional investors have recently made changes to their positions in AJRD. Advisors Asset Management Inc. acquired a new stake in shares of Aerojet Rocketdyne during the second quarter valued at about $278,000. Seven Eight Capital LP acquired a new stake in shares of Aerojet Rocketdyne during the third quarter valued at about $207,000. First Trust Advisors LP grew its stake in shares of Aerojet Rocketdyne by 161.4% during the third quarter. First Trust Advisors LP now owns 110,872 shares of the aerospace company’s stock valued at $3,769,000 after acquiring an additional 68,451 shares in the last quarter. ARP Americas LP acquired a new stake in shares of Aerojet Rocketdyne during the third quarter valued at about $226,000. Finally, Benjamin F. Edwards & Company Inc. grew its stake in Aerojet Rocketdyne by 801.6% in the third quarter. Benjamin F. Edwards & Company Inc. now owns 3,877 shares of the aerospace company’s stock worth $132,000 after purchasing an additional 3,447 shares in the last quarter.
About Aerojet Rocketdyne
Aerojet Rocketdyne Holdings, Inc engages in the provision of innovative solutions in the field of aerospace and defense, as well as in the field of real estate. It operates through the following business segments: Aerospace & Defense, and Real Estate. The Aerospace & Defense segment operates through the Aerojet Rocketdyne, Inc in developing and manufacturing of aerospace and defense products and systems for the United States government, the National Aeronautics and Space Administration, major aerospace and defense prime contractors as well as portions of the commercial sector.
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