Hexcel (NYSE:HXL) Stock Dropped to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded Hexcel to “hold” from “buy,” while the broader analyst consensus remains “hold,” with an average price target of $101.67.
• Hexcel’s latest quarterly EPS of $0.50 slightly exceeded estimates, and revenue rose 8.8% year over year to $496.4 million, though revenue fell short of expectations.
• Shares opened at $79.45, well below the average analyst target, as investors weighed strong commercial aerospace demand against weaker defense sales and an unchanged full-year outlook.

Hexcel (NYSE:HXL - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other research analysts have also recently issued reports on HXL. TD Cowen cut their target price on shares of Hexcel from $115.00 to $90.00 and set a "hold" rating on the stock in a report on Friday, October 9th. Seaport Research Partners raised shares of Hexcel from a "neutral" rating to a "buy" rating and set a $104.00 target price for the company in a report on Sunday, October 11th. Bank of America cut Hexcel from a "peer perform" rating to a "market perform" rating and set a $110.00 target price for the company. in a report on Monday, August 3rd. UBS Group decreased their price objective on Hexcel from $123.00 to $117.00 and set a "buy" rating for the company in a report on Friday. Finally, Weiss Ratings upgraded Hexcel from a "hold (c)" rating to a "buy (b-)" rating in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $101.67.

Hexcel Stock Performance

NYSE HXL opened at $79.45 on Friday. The firm has a market cap of $6.01 billion, a price-to-earnings ratio of 35.63, a PEG ratio of 1.12 and a beta of 1.10. Hexcel has a 1-year low of $67.38 and a 1-year high of $111.74. The company has a current ratio of 2.57, a quick ratio of 1.37 and a debt-to-equity ratio of 0.71. The company has a 50 day moving average of $89.65 and a 200-day moving average of $93.28.

Hexcel (NYSE:HXL - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The aerospace company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.49 by $0.01. The firm had revenue of $496.40 million for the quarter, compared to analyst estimates of $501.95 million. Hexcel had a net margin of 8.50% and a return on equity of 13.57%. The company's revenue was up 8.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.37 EPS. On average, equities analysts forecast that Hexcel will post 2.37 earnings per share for the current fiscal year.

Insider Activity at Hexcel

In other Hexcel news, insider Gina Fitzsimons sold 9,675 shares of the business's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $103.14, for a total transaction of $997,879.50. Following the sale, the insider directly owned 7,712 shares in the company, valued at approximately $795,415.68. The trade was a 55.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Gail Lehman sold 13,829 shares of Hexcel stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $92.10, for a total transaction of $1,273,650.90. Following the sale, the insider owned 20,148 shares of the company's stock, valued at approximately $1,855,630.80. This trade represents a 40.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.84% of the company's stock.

Institutional Trading of Hexcel

A number of institutional investors have recently made changes to their positions in HXL. Inspire Investing LLC increased its stake in shares of Hexcel by 72.9% during the 3rd quarter. Inspire Investing LLC now owns 11,762 shares of the aerospace company's stock worth $987,000 after purchasing an additional 4,961 shares during the last quarter. Pinnacle Associates Ltd. lifted its stake in Hexcel by 5.7% in the 3rd quarter. Pinnacle Associates Ltd. now owns 115,713 shares of the aerospace company's stock worth $9,711,000 after purchasing an additional 6,286 shares in the last quarter. Willis Investment Counsel boosted its holdings in Hexcel by 10.7% during the 3rd quarter. Willis Investment Counsel now owns 42,214 shares of the aerospace company's stock valued at $3,543,000 after acquiring an additional 4,064 shares during the period. TD Waterhouse Canada Inc. lifted its position in shares of Hexcel by 541.7% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,540 shares of the aerospace company's stock worth $134,000 after purchasing an additional 1,300 shares during the period. Finally, Krilogy Financial LLC increased its stake in shares of Hexcel by 3.0% in the 3rd quarter. Krilogy Financial LLC now owns 5,887 shares of the aerospace company's stock worth $500,000 after acquiring an additional 170 shares in the last quarter. 95.47% of the stock is owned by institutional investors and hedge funds.

More Hexcel News

Here are the key news stories impacting Hexcel this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.50 per share, ahead of estimates, while net sales increased 8.8% year over year to $496.4 million. Commercial aerospace sales rose approximately 21%, supported by strong demand for the A350, 787, A320 and 737 MAX programs. Hexcel Q3 Earnings Surpass Estimates, Revenues Improve Y/Y
• Positive Sentiment: Management expects peak aircraft production to generate approximately $500 million in incremental annual sales, offering a potentially significant long-term growth opportunity. Hexcel: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Royal Bank of Canada lowered its price target from $105 to $100 but maintained an “outperform” rating, implying substantial upside based on the referenced share price. Royal Bank of Canada recommendations
• Neutral Sentiment: Hexcel declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and a yield of roughly 0.9%. Hexcel Reports 2026 Third Quarter Results
• Negative Sentiment: Revenue of $496.4 million missed consensus estimates near $502 million. Although earnings exceeded expectations, investors were disappointed that full-year guidance was reaffirmed rather than raised.
• Negative Sentiment: Fiscal 2026 revenue guidance of $2.025 billion-$2.125 billion is around or below the $2.1 billion consensus midpoint, while adjusted EPS guidance of $2.30-$2.40 is broadly in line with expectations. Defense, Space & Other sales declined about 9%, and accelerated hiring and training are creating near-term cost pressure. Hexcel slides after Q3 revenue miss and unchanged outlook

About Hexcel

Hexcel Corporation is an advanced materials company that develops and manufactures lightweight, high-performance composite materials and structural components. Its products are designed to improve strength, durability, fuel efficiency, and performance across demanding applications.

The company's portfolio includes carbon fiber, fiberglass, specialty reinforcements, prepregs, adhesives, honeycomb materials, engineered core products, and composite structures. These materials and components are used in commercial aircraft, military and space systems, helicopters, wind turbine blades, and various industrial applications.

Hexcel serves customers worldwide through manufacturing, research, and distribution operations in North America, Europe, Asia, and other international markets.

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