Cubic (CUB) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Cubic (NYSE:CUB) from a strong sell rating to a hold rating in a research note published on Tuesday.

According to Zacks, “Cubic Corporation is the parent company of two major business segments: defense and transportation. The Cubic Defense Applications group is a world leader in realistic combat training systems, mission support services and defense electronics. Cubic Transportation Systems designs and manufactures automatic fare collection systems for public transit authorities. Cubic Transportation Systems designs, manufactures and integrates automatic fare collection systems for public transit projects throughout the world. This includes rail, bus and parking lot systems. The company supplies contactless smart cards; magnetic stripe cards; device software; and transit hardware including gates, ticket machines and card readers. Cubic Defense Applications provides realistic live combat training systems for military forces as well as virtual training systems, constructive simulation support, force modernization, battle command training and education and engineering & technical support. “

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A number of other equities research analysts also recently issued reports on the company. JPMorgan Chase & Co. boosted their price target on Cubic from $66.00 to $70.00 and gave the company a neutral rating in a research note on Friday, June 15th. Canaccord Genuity boosted their price target on Cubic from $72.00 to $76.00 and gave the company a buy rating in a research note on Thursday, June 14th. Needham & Company LLC downgraded Cubic from a buy rating to a hold rating in a research note on Monday, May 14th. They noted that the move was a valuation call. William Blair assumed coverage on Cubic in a research note on Tuesday, May 8th. They set an outperform rating for the company. Finally, ValuEngine upgraded Cubic from a hold rating to a buy rating in a research note on Monday, April 2nd. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The stock presently has a consensus rating of Buy and a consensus price target of $68.33.

Cubic opened at $66.80 on Tuesday, according to Marketbeat Ratings. Cubic has a one year low of $39.58 and a one year high of $72.43. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.57 and a current ratio of 1.85.

Cubic (NYSE:CUB) last released its quarterly earnings data on Wednesday, May 2nd. The scientific and technical instruments company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.17) by $0.10. The company had revenue of $278.60 million during the quarter, compared to the consensus estimate of $255.25 million. Cubic had a negative return on equity of 1.83% and a negative net margin of 1.44%. Cubic’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same period last year, the company earned $0.02 EPS. equities analysts anticipate that Cubic will post 1.5 EPS for the current year.

In other news, SVP Mark Harrison sold 3,000 shares of Cubic stock in a transaction dated Thursday, May 10th. The stock was sold at an average price of $71.19, for a total transaction of $213,570.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director David F. Melcher acquired 1,000 shares of the stock in a transaction dated Monday, May 7th. The shares were bought at an average cost of $64.45 per share, for a total transaction of $64,450.00. Following the completion of the transaction, the director now owns 1,000 shares in the company, valued at $64,450. The disclosure for this purchase can be found here. Insiders own 7.90% of the company’s stock.

Hedge funds have recently bought and sold shares of the company. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Cubic by 69.9% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,064 shares of the scientific and technical instruments company’s stock valued at $131,000 after buying an additional 849 shares in the last quarter. Advisor Group Inc. lifted its position in shares of Cubic by 981.1% during the 4th quarter. Advisor Group Inc. now owns 2,292 shares of the scientific and technical instruments company’s stock valued at $135,000 after buying an additional 2,080 shares in the last quarter. Summit Trail Advisors LLC lifted its position in shares of Cubic by 4,493.2% during the 1st quarter. Summit Trail Advisors LLC now owns 210,045 shares of the scientific and technical instruments company’s stock valued at $210,000 after buying an additional 205,472 shares in the last quarter. Miles Capital Inc. purchased a new position in shares of Cubic during the 1st quarter valued at about $211,000. Finally, Amalgamated Bank purchased a new position in shares of Cubic during the 4th quarter valued at about $214,000. 94.41% of the stock is currently owned by hedge funds and other institutional investors.

About Cubic

Cubic Corporation provides various integrated solutions worldwide. Its solutions enhance the situational understanding for transportation, defense, and training customers, as well as for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) customers. The company operates through four segments: Cubic Transportation Systems (CTS), Cubic Global Defense Systems (CGD Systems), Cubic Mission Solutions (CMS), and Cubic Global Defense Services (CGD Services).

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