AlphaQuest LLC Decreases Stock Position in Heico Corporation $HEI

Key Points

• AlphaQuest LLC reduced its holding in Heico Corporation by 58.6%, owning 1,222 shares worth $327,000 after selling 1,731 shares in the first quarter.
• Heico increased its semi-annual dividend to $0.12 per share, up from $0.11, representing a yield of 10.0%.
• Following recent earnings, Heico reported $1.26 EPS, exceeding expectations, with a revenue increase of 15.7% year-over-year.

AlphaQuest LLC lowered its holdings in Heico Corporation (NYSE:HEI - Free Report) by 58.6% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,222 shares of the aerospace company's stock after selling 1,731 shares during the period. AlphaQuest LLC's holdings in Heico were worth $327,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Artemis Investment Management LLP bought a new stake in Heico during the 1st quarter valued at $7,612,000. Baker Avenue Asset Management LP bought a new stake in shares of Heico during the 1st quarter valued at $345,000. Freedom Day Solutions LLC purchased a new stake in Heico during the 1st quarter worth about $2,653,000. Praxis Investment Management Inc. boosted its stake in Heico by 24.9% in the 1st quarter. Praxis Investment Management Inc. now owns 8,830 shares of the aerospace company's stock worth $2,359,000 after purchasing an additional 1,760 shares during the period. Finally, Vantage Investment Partners LLC grew its holdings in Heico by 1.1% during the 1st quarter. Vantage Investment Partners LLC now owns 162,145 shares of the aerospace company's stock valued at $43,324,000 after buying an additional 1,772 shares in the last quarter. 27.12% of the stock is currently owned by hedge funds and other institutional investors.

Heico Price Performance

Shares of HEI traded up $3.89 during midday trading on Tuesday, reaching $315.91. The stock had a trading volume of 375,011 shares, compared to its average volume of 458,786. The company has a current ratio of 3.35, a quick ratio of 1.56 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $43.94 billion, a price-to-earnings ratio of 69.13, a price-to-earnings-growth ratio of 3.85 and a beta of 1.08. The company's 50-day moving average is $318.16 and its 200 day moving average is $284.17. Heico Corporation has a 12-month low of $216.68 and a 12-month high of $338.92.

Heico (NYSE:HEI - Get Free Report) last announced its quarterly earnings data on Monday, August 25th. The aerospace company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.12 by $0.14. The company had revenue of $1.15 billion for the quarter, compared to analysts' expectations of $1.11 billion. Heico had a return on equity of 16.29% and a net margin of 14.96%.Heico's revenue for the quarter was up 15.7% compared to the same quarter last year. During the same period last year, the firm posted $0.97 EPS. On average, equities analysts predict that Heico Corporation will post 4.2 EPS for the current fiscal year.

Heico Increases Dividend

The firm also recently disclosed a semi-annual dividend, which was paid on Tuesday, July 15th. Stockholders of record on Tuesday, July 1st were issued a $0.12 dividend. This represents a dividend yield of 10.0%. The ex-dividend date was Tuesday, July 1st. This is a positive change from Heico's previous semi-annual dividend of $0.11. Heico's dividend payout ratio (DPR) is presently 5.25%.

Analysts Set New Price Targets

HEI has been the topic of a number of recent analyst reports. Robert W. Baird increased their price target on shares of Heico from $360.00 to $400.00 and gave the stock an "outperform" rating in a report on Wednesday, August 27th. Morgan Stanley increased their target price on shares of Heico from $305.00 to $330.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 17th. Jefferies Financial Group restated a "buy" rating on shares of Heico in a research report on Monday, August 18th. Bank of America increased their price objective on Heico from $320.00 to $355.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Finally, Wall Street Zen raised Heico from a "hold" rating to a "buy" rating in a research note on Saturday. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $342.00.

Insider Activity

In other news, Chairman Laurans A. Mendelson sold 56,300 shares of the company's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $319.45, for a total value of $17,985,035.00. Following the completion of the sale, the chairman owned 1,253,127 shares of the company's stock, valued at approximately $400,311,420.15. This represents a 4.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 9.55% of the company's stock.

Heico Profile

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components.