Wells Fargo & Company Issues Pessimistic Forecast for Hexcel (NYSE:HXL) Stock Price

Key Points

• Wells Fargo lowered Hexcel’s price target from $120 to $105 while maintaining an “overweight” rating, implying roughly 25% upside from the stock’s prior close.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $106; ratings include one Strong Buy, five Buys, nine Holds, and one Sell.
• Hexcel reported quarterly EPS of $0.66, beating the $0.57 consensus estimate, while revenue rose 8% year over year to $529.3 million. The stock recently traded at $83.91, well below its 52-week high of $111.74.

Hexcel (NYSE:HXL - Get Free Report) had its price objective dropped by equities research analysts at Wells Fargo & Company from $120.00 to $105.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the aerospace company's stock. Wells Fargo & Company's target price points to a potential upside of 25.14% from the stock's previous close.

Several other research firms have also issued reports on HXL. The Goldman Sachs Group increased their price target on shares of Hexcel from $88.00 to $97.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. Wall Street Zen downgraded Hexcel from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 16th. Bank of America cut Hexcel from a "peer perform" rating to a "market perform" rating and set a $110.00 price target for the company. in a report on Monday, August 3rd. Morgan Stanley lifted their price objective on Hexcel from $97.00 to $110.00 and gave the company an "equal weight" rating in a research report on Friday, July 31st. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $100.00 price objective on shares of Hexcel in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $106.00.

Hexcel Stock Performance

HXL stock traded down $0.45 during trading on Wednesday, reaching $83.91. 40,914 shares of the stock were exchanged, compared to its average volume of 1,092,582. Hexcel has a twelve month low of $60.82 and a twelve month high of $111.74. The company has a current ratio of 2.43, a quick ratio of 1.37 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $6.35 billion, a P/E ratio of 42.18, a price-to-earnings-growth ratio of 1.20 and a beta of 1.05. The stock has a 50 day simple moving average of $96.21 and a 200-day simple moving average of $92.59.

Hexcel (NYSE:HXL - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The aerospace company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.09. The company had revenue of $529.30 million for the quarter, compared to analyst estimates of $528.08 million. Hexcel had a return on equity of 12.34% and a net margin of 7.76%.Hexcel's revenue for the quarter was up 8.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.50 EPS. Hexcel has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, sell-side analysts anticipate that Hexcel will post 2.36 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Gina Fitzsimons sold 9,675 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $103.14, for a total transaction of $997,879.50. Following the transaction, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Gail Lehman sold 13,829 shares of Hexcel stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $92.10, for a total value of $1,273,650.90. Following the transaction, the insider owned 20,148 shares of the company's stock, valued at $1,855,630.80. This represents a 40.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.84% of the stock is owned by company insiders.

Institutional Trading of Hexcel

Hedge funds have recently added to or reduced their stakes in the stock. Sequoia Financial Advisors LLC grew its holdings in shares of Hexcel by 2.3% during the first quarter. Sequoia Financial Advisors LLC now owns 5,340 shares of the aerospace company's stock valued at $432,000 after buying an additional 119 shares during the last quarter. Central Pacific Bank Trust Division lifted its stake in Hexcel by 7.1% during the 2nd quarter. Central Pacific Bank Trust Division now owns 1,803 shares of the aerospace company's stock valued at $180,000 after acquiring an additional 120 shares during the period. Clearstead Advisors LLC increased its stake in shares of Hexcel by 18.2% in the fourth quarter. Clearstead Advisors LLC now owns 817 shares of the aerospace company's stock worth $60,000 after acquiring an additional 126 shares during the period. Waverly Advisors LLC grew its position in Hexcel by 3.9% during the 2nd quarter. Waverly Advisors LLC now owns 3,598 shares of the aerospace company's stock worth $360,000 after purchasing an additional 134 shares during the period. Finally, Parvin Asset Management LLC boosted its stake in shares of Hexcel by 16.3% in the first quarter. Parvin Asset Management LLC now owns 1,035 shares of the aerospace company's stock worth $84,000 after buying an additional 145 shares during the last quarter. Institutional investors and hedge funds own 95.47% of the company's stock.

About Hexcel

Hexcel Corporation NYSE: HXL develops and manufactures advanced composite materials and structural solutions for the aerospace, defense, space, and industrial markets. Its products are designed to help customers reduce weight, improve performance, and increase fuel efficiency in aircraft and other demanding applications.

The company's product portfolio includes carbon fiber, specialty reinforcements, prepreg materials, honeycomb cores, adhesives, and other composite technologies. Hexcel also produces engineered composite structures and components used in commercial aircraft, military aircraft, helicopters, launch vehicles, satellites, and various industrial applications, including wind energy and transportation.

Hexcel traces its roots to the development of lightweight honeycomb materials in the mid-20th century and has expanded through research, manufacturing, and acquisitions into a global composites supplier.

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