Heico (NYSE:HEI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “HEICO Corp's share price outperformed its industry in the past 12 months. Increased demand for new products ranging from aftermarket replacement parts to repair and overhaul parts along with services product lines have been fueling organic growth. Its operational performance also exhibits solid inorganic growth history, thanks to the disciplined acquisition strategy followed by the company. A strong balance sheet and cash flow generation capacity also provides the company financial flexibility. However, intense competition may harm the company’s business operations. HEICO Corp. is subject to interest rate risk in connection with the issuance of debt. 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 HEICO Corp. A historical EV/EBITDA ratio reflects a relatively gloomy picture that might be a cause for investors’ concern.”
Separately, Vertical Research assumed coverage on shares of Heico in a research note on Tuesday, January 22nd. They issued a “buy” rating and a $91.00 target price for the company. Three investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Heico presently has an average rating of “Buy” and an average price target of $91.45.
Shares of HEI opened at $90.97 on Tuesday. The company has a market capitalization of $12.06 billion, a price-to-earnings ratio of 50.26, a PEG ratio of 3.50 and a beta of 0.87. Heico has a twelve month low of $60.65 and a twelve month high of $94.12. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.60 and a quick ratio of 1.18.
Heico (NYSE:HEI) last announced its earnings results on Monday, December 17th. The aerospace company reported $0.49 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.01. The company had revenue of $477.00 million during the quarter, compared to the consensus estimate of $462.91 million. Heico had a net margin of 14.58% and a return on equity of 16.39%. Heico’s revenue was up 13.3% compared to the same quarter last year. During the same period last year, the firm earned $0.62 earnings per share. On average, equities analysts predict that Heico will post 2.08 earnings per share for the current fiscal year.
In other news, VP Thomas S. Irwin sold 10,000 shares of Heico stock in a transaction on Thursday, January 10th. The shares were sold at an average price of $70.64, for a total transaction of $706,400.00. Following the completion of the sale, the vice president now directly owns 38,608 shares in the company, valued at $2,727,269.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Alan Schriesheim acquired 1,445 shares of the stock in a transaction dated Tuesday, January 22nd. The shares were bought at an average price of $79.59 per share, with a total value of $115,007.55. Following the completion of the purchase, the director now directly owns 24,700 shares of the company’s stock, valued at approximately $1,965,873. The disclosure for this purchase can be found here. Insiders own 9.88% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Parkside Financial Bank & Trust lifted its stake in shares of Heico by 8.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 2,084 shares of the aerospace company’s stock worth $161,000 after buying an additional 157 shares during the period. Verity Asset Management Inc. lifted its stake in shares of Heico by 6.3% during the fourth quarter. Verity Asset Management Inc. now owns 4,516 shares of the aerospace company’s stock worth $350,000 after buying an additional 266 shares during the period. Brown Advisory Securities LLC lifted its stake in shares of Heico by 7.2% during the fourth quarter. Brown Advisory Securities LLC now owns 4,217 shares of the aerospace company’s stock worth $320,000 after buying an additional 283 shares during the period. Trust Co. of Vermont lifted its stake in shares of Heico by 56.7% during the fourth quarter. Trust Co. of Vermont now owns 940 shares of the aerospace company’s stock worth $73,000 after buying an additional 340 shares during the period. Finally, Steinberg Global Asset Management lifted its stake in shares of Heico by 0.9% during the fourth quarter. Steinberg Global Asset Management now owns 41,268 shares of the aerospace company’s stock worth $3,197,000 after buying an additional 366 shares during the period. Institutional investors and hedge funds own 26.16% of the company’s stock.
HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company's Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components for aerospace and industrial original equipment manufacturers, and the United States government.
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