Hexcel Corporation (NYSE:HXL) Shares Set to Pay Quarterly Dividend of $0.18

Key Points

• Hexcel will pay a quarterly dividend of $0.18 per share on November 9 to shareholders of record as of November 2. The dividend implies an annualized payout of $0.72 and a 0.9% yield.
• The dividend appears well covered, with a current payout ratio of 28.6%; analysts expect next year’s earnings to support an estimated payout ratio of 21.1%.
• Hexcel shares fell 11.6% to $79.39, despite quarterly EPS of $0.50 exceeding estimates by $0.01. Revenue rose 8.8% year over year but came in below analysts’ expectations.

Hexcel Corporation (NYSE:HXL - Get Free Report) announced a quarterly dividend on Wednesday, October 21st. Shareholders of record on Monday, November 2nd will be paid a dividend of $0.18 per share by the aerospace company on Monday, November 9th. This represents a $0.72 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, November 2nd.

Hexcel has raised its dividend by an average of 0.3% annually over the last three years and has raised its dividend every year for the last 3 years. Hexcel has a dividend payout ratio of 28.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Hexcel to earn $3.41 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 21.1%.

Hexcel Stock Down 11.6%

Shares of HXL traded down $10.45 during mid-day trading on Thursday, reaching $79.39. The company's stock had a trading volume of 2,378,969 shares, compared to its average volume of 1,095,308. The company has a market cap of $6.00 billion, a price-to-earnings ratio of 39.81, a price-to-earnings-growth ratio of 1.25 and a beta of 1.10. Hexcel has a 1 year low of $63.21 and a 1 year high of $111.74. The company has a quick ratio of 1.37, a current ratio of 2.43 and a debt-to-equity ratio of 0.74. The business has a fifty day moving average of $90.55 and a 200 day moving average of $93.37.

Hexcel (NYSE:HXL - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The aerospace company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.01. Hexcel had a return on equity of 12.34% and a net margin of 7.76%. The firm had revenue of $496.40 million during the quarter, compared to the consensus estimate of $501.95 million. During the same period in the prior year, the business earned $0.37 EPS. The business's revenue for the quarter was up 8.8% on a year-over-year basis. As a group, analysts forecast that Hexcel will post 2.37 earnings per share for the current fiscal year.

Insider Transactions at Hexcel

In related news, insider Gina Fitzsimons sold 9,675 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $103.14, for a total value of $997,879.50. Following the completion of the sale, the insider owned 7,712 shares of the company's stock, valued at approximately $795,415.68. The trade was a 55.65% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Gail E. Lehman sold 13,829 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $92.10, for a total value of $1,273,650.90. Following the completion of the sale, the insider directly owned 20,148 shares of the company's stock, valued at approximately $1,855,630.80. The trade was a 40.70% decrease in their position. The SEC filing for this sale provides additional information. 1.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On Hexcel

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Hexcel during the 2nd quarter worth $1,422,742,000. Bank of America Corp DE raised its holdings in shares of Hexcel by 5.4% during the 1st quarter. Bank of America Corp DE now owns 2,264,427 shares of the aerospace company's stock valued at $183,260,000 after purchasing an additional 115,443 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Hexcel during the 2nd quarter valued at $51,460,000. The Manufacturers Life Insurance Company bought a new position in shares of Hexcel during the 2nd quarter valued at $39,649,000. Finally, Squarepoint Ops LLC lifted its stake in shares of Hexcel by 26.8% in the 2nd quarter. Squarepoint Ops LLC now owns 343,283 shares of the aerospace company's stock valued at $34,349,000 after purchasing an additional 72,660 shares during the last quarter. Institutional investors own 95.47% of the company's stock.

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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