Canada Pension Plan Investment Board Cuts Stake in Hexcel Corporation $HXL

Key Points

• The Canada Pension Plan Investment Board has reduced its shareholding in Hexcel Corporation by 16.3%, now owning approximately 68,700 shares valued at $3.76 million.
• Hexcel reported earnings per share of $0.50 for the last quarter, exceeding analyst expectations, but showed a 2.1% year-over-year revenue decline.
• The company recently declared a quarterly dividend of $0.17, translating to an annual yield of 1.1% and a payout ratio of 62.96%.

Canada Pension Plan Investment Board reduced its holdings in Hexcel Corporation (NYSE:HXL - Free Report) by 16.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 68,700 shares of the aerospace company's stock after selling 13,400 shares during the quarter. Canada Pension Plan Investment Board owned approximately 0.09% of Hexcel worth $3,762,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently made changes to their positions in the company. NBC Securities Inc. bought a new position in shares of Hexcel in the 1st quarter valued at about $61,000. Brooklyn Investment Group boosted its position in Hexcel by 320.2% during the first quarter. Brooklyn Investment Group now owns 1,164 shares of the aerospace company's stock worth $64,000 after purchasing an additional 887 shares during the period. Farther Finance Advisors LLC lifted its stake in shares of Hexcel by 71.2% during the 1st quarter. Farther Finance Advisors LLC now owns 1,200 shares of the aerospace company's stock worth $66,000 after buying an additional 499 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Hexcel by 413.7% during the first quarter. Caitong International Asset Management Co. Ltd now owns 1,536 shares of the aerospace company's stock worth $84,000 after buying an additional 1,237 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in Hexcel by 95.3% in the 1st quarter. GAMMA Investing LLC now owns 2,306 shares of the aerospace company's stock worth $126,000 after purchasing an additional 1,125 shares in the last quarter. Institutional investors and hedge funds own 95.47% of the company's stock.

Analyst Upgrades and Downgrades

HXL has been the topic of several recent research reports. UBS Group upgraded Hexcel from a "neutral" rating to a "buy" rating and raised their price target for the stock from $65.00 to $80.00 in a research report on Tuesday, September 2nd. Zacks Research upgraded Hexcel from a "strong sell" rating to a "hold" rating in a research note on Thursday. BMO Capital Markets increased their target price on shares of Hexcel from $52.00 to $67.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 29th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $70.00 price target (up from $65.00) on shares of Hexcel in a research report on Monday, July 28th. Finally, Morgan Stanley increased their price target on Hexcel from $50.00 to $55.00 and gave the company an "underweight" rating in a research report on Thursday, July 17th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $65.00.

Hexcel Stock Performance

Shares of NYSE:HXL traded down $0.72 during trading hours on Monday, hitting $64.17. The stock had a trading volume of 427,914 shares, compared to its average volume of 1,155,366. Hexcel Corporation has a 1-year low of $45.28 and a 1-year high of $71.05. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.50 and a current ratio of 2.69. The firm has a market capitalization of $5.10 billion, a price-to-earnings ratio of 59.50, a PEG ratio of 2.06 and a beta of 1.38. The stock's fifty day simple moving average is $60.99 and its 200 day simple moving average is $56.73.

Hexcel (NYSE:HXL - Get Free Report) last issued its earnings results on Thursday, July 24th. The aerospace company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.04. Hexcel had a return on equity of 9.76% and a net margin of 4.69%.The business had revenue of $489.90 million during the quarter, compared to analysts' expectations of $482.20 million. During the same period in the prior year, the firm posted $0.60 EPS. Hexcel's quarterly revenue was down 2.1% compared to the same quarter last year. Hexcel has set its FY 2025 guidance at 1.850-2.050 EPS. Sell-side analysts anticipate that Hexcel Corporation will post 2.14 earnings per share for the current fiscal year.

Hexcel Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 8th were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, August 8th. Hexcel's payout ratio is 62.96%.

Insider Buying and Selling

In related news, insider Thierry Merlot sold 8,897 shares of the firm's stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $63.86, for a total value of $568,162.42. Following the completion of the transaction, the insider owned 51,308 shares in the company, valued at $3,276,528.88. This trade represents a 14.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Gina Fitzsimons sold 911 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $65.00, for a total transaction of $59,215.00. Following the completion of the transaction, the insider owned 4,283 shares of the company's stock, valued at approximately $278,395. This trade represents a 17.54% decrease in their position. The disclosure for this sale can be found here. Insiders own 2.03% of the company's stock.

Hexcel Company Profile

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.