141,150 Shares in Heico Corporation $HEI Purchased by Freestone Grove Partners LP

Key Points

• Freestone Grove Partners LP bought 141,150 HEICO shares worth approximately $50.3 million, establishing a 0.10% stake. Institutional investors now own 27.12% of the company.
• HEICO reported a strong fiscal third quarter, with revenue up 23% to $1.41 billion and EPS of $1.67, beating analyst estimates; net income rose 33% to a record $235.4 million.
• Despite a “Moderate Buy” consensus and average analyst price target of $378.29, HEICO trades at a premium valuation, with a P/E ratio near 58, increasing expectations for continued earnings growth.

Freestone Grove Partners LP acquired a new position in Heico Corporation (NYSE:HEI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 141,150 shares of the aerospace company's stock, valued at approximately $50,276,000. Freestone Grove Partners LP owned 0.10% of Heico at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. Diamant Asset Management Inc. raised its position in shares of Heico by 25,698.9% in the 1st quarter. Diamant Asset Management Inc. now owns 763,647 shares of the aerospace company's stock worth $209,392,000 after acquiring an additional 760,687 shares in the last quarter. Weitz Investment Management Inc. purchased a new stake in Heico in the second quarter worth $52,737,000. Bank of New York Mellon Corp bought a new position in Heico in the second quarter worth $54,386,000. Munro Partners raised its holdings in Heico by 44.2% in the fourth quarter. Munro Partners now owns 284,898 shares of the aerospace company's stock worth $92,190,000 after purchasing an additional 87,265 shares in the last quarter. Finally, CI Investments Inc. lifted its position in Heico by 40.0% during the fourth quarter. CI Investments Inc. now owns 164,036 shares of the aerospace company's stock valued at $53,080,000 after buying an additional 46,846 shares during the period. 27.12% of the stock is owned by institutional investors.

Insider Buying and Selling at Heico

In related news, CAO Bradley K. Rowen sold 1,326 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $241.63, for a total transaction of $320,401.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 4.86% of the stock is owned by company insiders.

Key Stories Impacting Heico

Here are the key news stories impacting Heico this week:

• Positive Sentiment: HEICO’s third-quarter revenue rose 23% year over year to $1.41 billion, exceeding the $1.35 billion consensus estimate. Earnings per share reached $1.67, beating expectations of $1.51 and increasing from $1.26 a year earlier. HEICO Corporation Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability was especially strong: net income increased 33% to a record $235.4 million, while operating income climbed 34%. Consolidated organic sales growth reached 14%, indicating that gains extended beyond acquisitions. HEICO Reports Record Fiscal Third-Quarter Results
• Positive Sentiment: HEICO subsidiary VPT expanded distribution through DigiKey for its military, avionics and space power-conversion products. The move could improve product accessibility and support future sales, although the near-term financial effect is likely limited. VPT Products Now Available on DigiKey
• Neutral Sentiment: The quarterly beat was driven by continued aerospace and defense demand, along with acquisitions. Investors will likely focus on whether HEICO can sustain its growth rate and margins in coming quarters. HEICO Third-Quarter Revenue Climbs
• Negative Sentiment: Despite the earnings beat, HEI trades at a high valuation, with a price-to-earnings ratio near 62 and a price-to-earnings-growth ratio of 3.56. That premium may be encouraging profit-taking and raising the bar for future earnings surprises.

Heico Stock Performance

Shares of HEI stock opened at $346.82 on Thursday. Heico Corporation has a one year low of $256.11 and a one year high of $376.86. The company's 50-day moving average is $353.86 and its 200 day moving average is $321.38. The company has a market capitalization of $48.44 billion, a price-to-earnings ratio of 57.71, a price-to-earnings-growth ratio of 3.54 and a beta of 1.04. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.36 and a current ratio of 2.92.

Heico (NYSE:HEI - Get Free Report) last released its quarterly earnings data on Tuesday, August 25th. The aerospace company reported $1.67 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.16. The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.36 billion. Heico had a net margin of 16.38% and a return on equity of 18.41%. Heico's revenue was up 23.1% compared to the same quarter last year. During the same period last year, the business earned $1.26 EPS. Sell-side analysts expect that Heico Corporation will post 6.02 EPS for the current fiscal year.

Heico Dividend Announcement

The company also recently declared a dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a dividend of $0.13 per share. The ex-dividend date was Wednesday, July 1st. This represents a dividend yield of 7.0%. Heico's dividend payout ratio is presently 4.64%.

Analysts Set New Price Targets

HEI has been the topic of a number of recent research reports. Morgan Stanley set a $370.00 target price on shares of Heico in a research report on Wednesday, July 15th. Wall Street Zen cut shares of Heico from a "buy" rating to a "hold" rating in a research report on Sunday. Zacks Research raised shares of Heico from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 9th. Jefferies Financial Group set a $430.00 target price on shares of Heico in a research note on Wednesday. Finally, Rothschild & Co Redburn set a $360.00 price target on Heico and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Three analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Heico presently has a consensus rating of "Moderate Buy" and an average target price of $378.29.

About Heico

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company's offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.

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