Hsbc Holdings PLC Reduces Stake in Huntington Ingalls Industries, Inc. $HII

Key Points

• Hsbc Holdings PLC reduced its stake in Huntington Ingalls Industries by 45.9% in Q1 2023, now holding approximately $15.56 million worth of shares.
• Huntington Ingalls Industries reported $3.86 earnings per share, surpassing analysts' estimates of $3.23, with revenues of $3.08 billion for the quarter.
• The company announced a quarterly dividend of $1.35, yielding about 2.0%, with the dividend payout ratio at 40.42%.

Hsbc Holdings PLC lowered its stake in Huntington Ingalls Industries, Inc. (NYSE:HII - Free Report) by 45.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 76,301 shares of the aerospace company's stock after selling 64,730 shares during the period. Hsbc Holdings PLC owned 0.19% of Huntington Ingalls Industries worth $15,558,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in HII. GAMMA Investing LLC boosted its position in Huntington Ingalls Industries by 75,182.7% in the first quarter. GAMMA Investing LLC now owns 492,349 shares of the aerospace company's stock valued at $1,004,590,000 after buying an additional 491,695 shares in the last quarter. D. E. Shaw & Co. Inc. lifted its holdings in shares of Huntington Ingalls Industries by 1,648.4% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 375,872 shares of the aerospace company's stock worth $71,029,000 after purchasing an additional 354,374 shares during the period. Auto Owners Insurance Co lifted its holdings in shares of Huntington Ingalls Industries by 273.2% during the first quarter. Auto Owners Insurance Co now owns 455,308 shares of the aerospace company's stock worth $92,901,000 after purchasing an additional 333,308 shares during the period. Jacobs Levy Equity Management Inc. lifted its holdings in shares of Huntington Ingalls Industries by 4,900.7% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 210,480 shares of the aerospace company's stock worth $39,774,000 after purchasing an additional 206,271 shares during the period. Finally, Earnest Partners LLC lifted its holdings in shares of Huntington Ingalls Industries by 32.6% during the fourth quarter. Earnest Partners LLC now owns 831,965 shares of the aerospace company's stock worth $157,216,000 after purchasing an additional 204,376 shares during the period. Institutional investors and hedge funds own 90.46% of the company's stock.

Huntington Ingalls Industries Stock Down 0.5%

Shares of NYSE HII traded down $1.46 during mid-day trading on Friday, reaching $272.46. 60,099 shares of the company's stock traded hands, compared to its average volume of 622,620. The stock has a market cap of $10.69 billion, a P/E ratio of 20.39, a PEG ratio of 1.58 and a beta of 0.33. The business has a 50-day simple moving average of $258.67 and a 200 day simple moving average of $225.70. Huntington Ingalls Industries, Inc. has a 1-year low of $158.88 and a 1-year high of $293.14. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.08 and a quick ratio of 1.00.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The aerospace company reported $3.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.23 by $0.63. Huntington Ingalls Industries had a net margin of 4.54% and a return on equity of 11.34%. The firm had revenue of $3.08 billion during the quarter, compared to analysts' expectations of $2.94 billion. During the same period last year, the company earned $4.38 earnings per share. The business's revenue was up 3.5% on a year-over-year basis. Huntington Ingalls Industries has set its FY 2025 guidance at EPS. On average, analysts expect that Huntington Ingalls Industries, Inc. will post 13.99 EPS for the current fiscal year.

Huntington Ingalls Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 29th will be issued a dividend of $1.35 per share. The ex-dividend date is Friday, August 29th. This represents a $5.40 annualized dividend and a yield of 2.0%. Huntington Ingalls Industries's payout ratio is 40.42%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on HII shares. Barclays lifted their price target on shares of Huntington Ingalls Industries from $235.00 to $295.00 and gave the stock an "equal weight" rating in a report on Monday, August 4th. Wall Street Zen raised shares of Huntington Ingalls Industries from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. The Goldman Sachs Group lifted their target price on shares of Huntington Ingalls Industries from $236.00 to $265.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. TD Cowen raised shares of Huntington Ingalls Industries from a "hold" rating to a "buy" rating and lifted their target price for the stock from $250.00 to $300.00 in a research note on Thursday, July 10th. Finally, Bank of America lifted their target price on shares of Huntington Ingalls Industries from $180.00 to $260.00 and gave the stock an "underperform" rating in a research note on Wednesday, August 13th. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $267.00.

Insiders Place Their Bets

In related news, VP Chad N. Boudreaux sold 1,965 shares of the business's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $228.94, for a total transaction of $449,867.10. Following the transaction, the vice president directly owned 21,228 shares in the company, valued at approximately $4,859,938.32. The trade was a 8.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.72% of the company's stock.

Huntington Ingalls Industries Profile

Huntington Ingalls Industries, Inc designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S.