Cubic Corporation (CUB) Announces That They Will Acquire GATR Technologies and TeraLogics

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Cubic Corporation (NYSE:CUB) this morning announced that they have agreed to acquire a leading provider of real-time full motion video PED, TeraLogics, for $39 million and $9 million of contigent consideration. This acquisition will help Cubic Corporation (NYSE:CUB) further grow their defense systems business. Along with this acquisition, the company has also announced that they have entered into a definative agreement to acquire Alabama-based GATR Technologies for $232.5 million (includes $7.5 million in contigent consideration). GATR Technologies manufactures numerous deployable satellite communication solutions.

The stock closed at $45.42 during the last trading session. It is down 6.10% since May 18, 2015 and is downtrending. It has underperformed the S&P500 by 3.83%.

From a total of 3 analysts covering Cubic Corporation (NYSE:CUB) stock, 3 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $52 while the lowest target price is $48. The mean of all analyst targets is $50 which is 10.08% above today’s ($45.42) stock price. Cubic Corporation was the topic of 3 analyst reports since September 17, 2015 according to the firm StockzIntelligence Inc. Benchmark upgraded shares on November 25 to a “Buy” rating. Credit Suisse upgraded CUB stock in a recent report from September 17 to a “Outperform” rating.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.36, from 1.43 in 2015Q2. The ratio dropped, as 23 funds sold all their Cubic Corporation shares they owned while 46 reduced their positions. 16 funds bought stakes while 58 increased their total positions. Institutions now own 30.57 million shares which is 47.34% more than the previous share count of 20.74 million in 2015Q2.

Springbank Value Partners Lp holds 3.31% of its total portfolio in Cubic Corporation, equating to 41,197 shares. Value Holdings Lp owns 100,051 shares representing 3.04% of their total US portfolio. Moreover, Messner & Smith Theme Value Investment Management Ltd Ca has 2.55% of their total portfolio invested in the company, equating to 30,724 shares. The Florida-based Intrepid Capital Management Inc has a total of 2.17% of their portfolio invested in the stock. Stanley, a Alabama-based fund reported 174,401 shares owned.

Since June 24, 2015, the stock had 0 insider purchases, and 2 selling transactions for a total of $11.31 million in net activity. Zable Walter C sold 185,513 shares worth $8.21M.

Cubic Corporation is an international well-known provider of systems and solutions that address the mass transit and global defense markets. The company has a market cap of $1.22 billion. The Firm operates in three divisions: Cubic Transportation Systems (CTS), Mission Support Services (MSS) and Cubic Defense Systems (CDS). It has 53.32 P/E ratio. As of the September 30, 2013 (fiscal 2013), the Company’s CTS business accounted for approximately 38%; MSS and CDS accounted for approximately 62%.

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