Spirit AeroSystems Holdings, Inc. (SPR) A Stock to Buy on Insider Confidence?

The Spirit AeroSystems Holdings, Inc. (NYSE:SPR) bulls won the day, but the reality is that the 1.5 points or 1.63 percent advance gave very little definitive technical indication of where the stock could be headed next. On 13 March, the shares traded at $93.4 with a light trade volume of 2.788 million shares. After opening the session at $92, the shares went as high as $94.29 and as low as $89.52, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.81 billion and now has 105.05 million shares outstanding. Spirit AeroSystems Holdings, Inc. (SPR) stock has lost -0.86 percent of market value in 21 trading days.

SPR stock has a trailing 3-year beta of 1.46, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.63 a share in the trailing twelve months. The stock’s value has surged 29.56 percent year to date (YTD) against a rise of 2.82 percent in 12 month’s time. The company’s shares still trade -6.92 percent away from its 1-year high of $100.34 and 44.85 percent up from 52-week low of $64.48. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Spirit AeroSystems Holdings, Inc. (SPR) will probably climb 11.7 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $115-month high price target. This represents a whopping 23.13 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $103, which represents a return potential of 10.28 percent when compared to the closing price of the stock of $93.4 on Wednesday, March 13. The lowest price target for the stock is $95 — slightly more than 1.71 percent from SPR’s current share price.

History has shown that shares in Spirit AeroSystems Holdings, Inc. have gone up on 21 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. Investors will get their next glimpse of SPR’s Q1 earnings on May 02. Analysts are forecasting revenue to climb 12 percent to $1.94B in the fiscal first quarter, while earnings are seen soaring by nearly 51.82 percent to $1.67 per share. It earned $1.85 per share, better than the $1.8, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.84B, worse than the $1.85B analysts expected. Earnings are estimated to increase by 72.4 percent this year, 10.37 percent next year and continue to increase by 11.9 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $90.52. Below this, the next support is placed in the zone of $87.63. Till the time, the SPR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.36 on daily chart, which may remain a cause for concern. If the price breaks below $87.63 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $95.29 mark may result into a pull-back move towards $97.17 level.

Shares of Spirit AeroSystems Holdings, Inc. (SPR) are trading at a P/E ratio of 16.32 times earnings reported for the past 12 months. The industry SPR operates in has an average P/E of 13.8. Its P/E ratio went as low as 8.86X and as high as 26.83 over the 5-year span.Further, it is sporting a 1.36 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.8. 15 percent is the gross profit margin for Spirit AeroSystems Holdings, Inc. and operating margin sits at 11.7 percent. Along with this, the net profit margin is 8.5 percent.