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Aerojet Rocketdyne (AJRD, $51.53) to be acquired by Lockheed Martin in $4.4 billion deal
Aerojet Rocketdyne shares climbed on Monday, following news that Lockheed Martin agreed to buy Aerojet in a deal valued at $4.4 billion.
Lockheed will pay $51 a share for each Aerojet share, a 21% premium from Friday’s closing price. What’s more, Aerojet announced a $5 a share special dividend to be paid on March 24, to shareholders of record as of March 10 -- thereby bringing the total amount to be received by Aerojet shareholders to $56 a share.
The transaction will allow Lockheed’s defense products to expand into Aerojet’s systems for missiles, rockets and other space and defense applications.
The deal is expected to close in the second half of 2021, subject to approvals from regulators and from Aerojet’s shareholders.
AJRD sees MACD Histogram crosses below signal line
AJRD saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 22, 2022. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 41 instances where the indicator turned negative. In 29 of the 41 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 71%.
Current price $39.52 crossed the support line at $38.77 and is trading between $53.87 resistance and $38.77 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -8% Downtrend. During the week of 05/09/22 - 05/16/22, the stock fell -0.93%.
The 10-day RSI Indicator for AJRD moved out of overbought territory on April 18, 2022. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 20 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 56%.
The Momentum Indicator moved below the 0 level on April 22, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on AJRD as a result. In 49 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
AJRD moved below its 50-day Moving Average on May 09, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for AJRD crossed bearishly below the 50-day moving average on May 11, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 56%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AJRD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
The Aroon Indicator for AJRD entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 34 of 55 cases where AJRD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
Following a +2.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where AJRD advanced for three days, in 197 of 329 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
AJRD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 78%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.7.
The Tickeron Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.800) is normal, around the industry mean (4.596). P/E Ratio (21.322) is within average values for comparable stocks, (193.940). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (10.675). AJRD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.025). P/S Ratio (1.493) is also within normal values, averaging (163.460).
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. AJRD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 55 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 30 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
The average market capitalization across the Aerospace & Defense Industry is 8.7B. The market cap for tickers in the group ranges from 38.5K to 136.7B. RTX holds the highest valuation in this group at 136.7B. The lowest valued company is TURA at 38.5K.
The average weekly price growth across all stocks in the Aerospace & Defense Industry was -1.5%. For the same Industry, the average monthly price growth was -11.71%, and the average quarterly price growth was -12.69%. PSSR experienced the highest price growth at 32.45%, while BOMBF experienced the biggest fall at -61.81%.
- 3/23/22 4:50 AM: Aerojet Rocketdyne Holdings (AJRD, $40.15) was a top weekly gainer, with a +6.27% jump
- 3/8/22 8:37 AM: Aerojet Rocketdyne Holdings (AJRD, $40.69) was a top weekly gainer, with a +5.01% jump
- 3/1/22 7:32 AM: Aerojet Rocketdyne Holdings (AJRD, $38.75) was a top weekly gainer, with a +5.38% jump
The average weekly volume growth across all stocks in the Aerospace & Defense Industry was -45.58%. For the same stocks of the Industry, the average monthly volume growth was 69.23% and the average quarterly volume growth was 54.92%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 49%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.98.
31 stocks in the group of tickers exhibit a similar negative trend based on the MA50MA10 indicator with an average likelihood of 66%.
The most notable companies in this group are Lockheed Martin Corp (NYSE:LMT), Boeing Company (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), Spirit Aerosystems Holdings (NYSE:SPR), Maxar Technologies (NYSE:MAXR), Virgin Galactic Holdings (NYSE:SPCE).
The average market capitalization across the group is 15.7B. The market cap for tickers in the group ranges from 21.9M to 136.7B. RTX holds the highest valuation in this group at 136.7B. The lowest valued company is AIRI at 21.9M.
The average weekly price growth across all stocks in the group was 0.42%. For the same group, the average monthly price growth was -13.02%, and the average quarterly price growth was -15.51%. ISSC experienced the highest price growth at 24.35%, while RADA experienced the biggest fall at -20.93%.
- 5/12/22 5:38 AM: General Dynamics (GD, $226.94) was a top loser this week, declining -6.58%. Expect a Downtrend reversal
- 5/10/22 5:36 AM: Textron (TXT, $64.28) was a top loser this week, declining -8.26%. Expect a Downtrend continuation
- 5/5/22 4:57 AM: Virgin Galactic Holdings (SPCE, $8.26) was a top weekly gainer, with a +7.13% jump
The average weekly volume growth across all stocks in the group was -58.5%. For the same stocks of the group, the average monthly volume growth was -48.56% and the average quarterly volume growth was -1.78%
- 3/19/22 4:44 AM: The volume for AeroVironment stock increased for one day, resulting in a record-breaking daily growth of 266% of the 65-Day Volume Moving Average
- 3/8/22 8:32 AM: The volume for Curtiss-Wright stock increased for one day, resulting in a record-breaking daily growth of 280% of the 65-Day Volume Moving Average
- 2/25/22 6:56 AM: The volume for Air Industries Group stock increased for one day, resulting in a record-breaking daily growth of 243% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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