Dearborn Partners LLC Invests $222,000 in Heico Corporation (NYSE:HEI)

Key Points

• Dearborn Partners LLC has made a new investment of $222,000 in Heico Corporation, acquiring 831 shares in the aerospace company during the first quarter.
• Heico recently reported an EPS of $1.12 for the quarter, exceeding analysts' estimates, and its revenue increased by 14.9% year-over-year.
• The company announced an increase in its semi-annual dividend from $0.11 to $0.12, reflecting a current dividend yield of 0.1%.

Dearborn Partners LLC purchased a new stake in shares of Heico Corporation (NYSE:HEI - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 831 shares of the aerospace company's stock, valued at approximately $222,000.

A number of other hedge funds have also made changes to their positions in HEI. Bain Capital Public Equity Management II LLC purchased a new position in shares of Heico during the 4th quarter valued at $110,503,000. EULAV Asset Management increased its stake in Heico by 1.8% in the first quarter. EULAV Asset Management now owns 461,693 shares of the aerospace company's stock valued at $123,360,000 after acquiring an additional 8,000 shares during the period. Two Sigma Advisers LP grew its stake in Heico by 2.3% during the fourth quarter. Two Sigma Advisers LP now owns 371,178 shares of the aerospace company's stock worth $88,244,000 after buying an additional 8,300 shares during the last quarter. Freestone Grove Partners LP bought a new stake in Heico during the fourth quarter worth about $71,030,000. Finally, Vantage Investment Partners LLC lifted its position in shares of Heico by 1.1% during the first quarter. Vantage Investment Partners LLC now owns 162,145 shares of the aerospace company's stock worth $43,324,000 after purchasing an additional 1,772 shares in the last quarter. Institutional investors and hedge funds own 27.12% of the company's stock.

Insider Activity at Heico

In related news, Director Alan Schriesheim sold 35,000 shares of Heico stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $298.36, for a total value of $10,442,600.00. Following the transaction, the director directly owned 122,197 shares in the company, valued at $36,458,696.92. The trade was a 22.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Chairman Laurans A. Mendelson sold 56,300 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was 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 directly owned 1,253,127 shares of the company's stock, valued at approximately $400,311,420.15. This trade represents a 4.30% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 91,656 shares of company stock valued at $28,534,115. Insiders own 9.55% of the company's stock.

Heico Stock Performance

HEI traded down $1.36 during trading on Friday, hitting $325.44. 371,374 shares of the stock were exchanged, compared to its average volume of 335,053. The firm has a market capitalization of $45.27 billion, a P/E ratio of 76.04, a PEG ratio of 4.05 and a beta of 1.11. Heico Corporation has a 1-year low of $216.68 and a 1-year high of $328.64. The stock has a fifty day moving average price of $312.82 and a two-hundred day moving average price of $271.74. The company has a quick ratio of 1.56, a current ratio of 3.43 and a debt-to-equity ratio of 0.56.

Heico (NYSE:HEI - Get Free Report) last posted its quarterly earnings results on Tuesday, May 27th. The aerospace company reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $1.03 by $0.09. Heico had a return on equity of 15.88% and a net margin of 14.54%. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.06 billion. During the same period in the previous year, the business earned $0.88 earnings per share. The company's revenue for the quarter was up 14.9% compared to the same quarter last year. As a group, sell-side analysts predict that Heico Corporation will post 4.2 earnings per share for the current year.

Heico Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st were issued a $0.12 dividend. This is an increase from Heico's previous semi-annual dividend of $0.11. This represents a yield of 10.0%. The ex-dividend date of this dividend was Tuesday, July 1st. Heico's dividend payout ratio (DPR) is currently 5.61%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on HEI shares. Wall Street Zen lowered shares of Heico from a "buy" rating to a "hold" rating in a report on Friday, July 18th. Barclays set a $280.00 price target on shares of Heico and gave the company an "equal weight" rating in a research note on Monday, June 2nd. Stifel Nicolaus set a $352.00 price target on shares of Heico and gave the company a "buy" rating in a report on Tuesday, June 24th. Truist Financial lifted their price objective on shares of Heico from $323.00 to $352.00 and gave the stock a "buy" rating in a research note on Friday, July 11th. Finally, Bank of America boosted their target price on shares of Heico from $320.00 to $355.00 and gave the company a "buy" rating in a research report on Thursday, July 3rd. Six equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $301.45.

About Heico

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.