Huntington Ingalls Industries (NYSE:HII) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Huntington Ingalls, being the nation's largest military shipbuilder, the company has stable financials and regularly returns cash to shareholders. The company also maintains stable liquidity and capital resources to fund its operations. In addition, the company focuses on maximizing shareholder value, through both share repurchases and increased dividend payouts. During the third quarter, Huntington Ingalls secured $2.8 billion in new contracts, which resulted in total backlog of $22 billion. However, its exposure to debt, combined with the company’s ability to incur significant amounts of debt in the future, increases its vulnerability to adverse economic or industry conditions. The company's shares underperformed its industry in last 12 months.”
A number of other analysts have also recently weighed in on HII. Cowen restated a “buy” rating and issued a $260.00 price target on shares of Huntington Ingalls Industries in a research note on Monday, January 14th. Sanford C. Bernstein cut their price target on Huntington Ingalls Industries from $246.00 to $223.00 in a research note on Monday, November 12th. Citigroup cut their price target on Huntington Ingalls Industries from $260.00 to $240.00 and set a “buy” rating on the stock in a research note on Monday, January 14th. Drexel Hamilton reaffirmed a “buy” rating and set a $265.00 price objective on shares of Huntington Ingalls Industries in a report on Wednesday, November 14th. Finally, Bank of America dropped their price objective on Huntington Ingalls Industries from $335.00 to $305.00 and set a “buy” rating on the stock in a report on Friday, November 9th. Two analysts have rated the stock with a sell rating, five have given a hold rating and ten have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $250.14.
Huntington Ingalls Industries (NYSE:HII) last posted its quarterly earnings results on Thursday, November 8th. The aerospace company reported $5.29 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.14 by $1.15. Huntington Ingalls Industries had a return on equity of 43.71% and a net margin of 8.63%. The company had revenue of $2.08 billion for the quarter, compared to analysts’ expectations of $1.90 billion. During the same period last year, the firm earned $3.27 earnings per share. Huntington Ingalls Industries’s quarterly revenue was up 11.8% on a year-over-year basis. On average, research analysts expect that Huntington Ingalls Industries will post 18.21 earnings per share for the current fiscal year.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ayalon Holdings Ltd. purchased a new position in shares of Huntington Ingalls Industries during the third quarter worth about $110,000. Welch Group LLC purchased a new position in shares of Huntington Ingalls Industries during the third quarter worth about $110,000. NN Investment Partners Holdings N.V. purchased a new position in shares of Huntington Ingalls Industries during the third quarter worth about $117,000. Belpointe Asset Management LLC purchased a new position in shares of Huntington Ingalls Industries during the third quarter worth about $152,000. Finally, NEXT Financial Group Inc purchased a new position in shares of Huntington Ingalls Industries during the third quarter worth about $168,000. 85.20% of the stock is currently owned by hedge funds and other institutional investors.
Huntington Ingalls Industries Company Profile
Huntington Ingalls Industries, Inc engages in the designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S.
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