Munro Partners Buys 87,265 Shares of Heico Corporation $HEI

Key Points

• Munro Partners increased its HEICO stake by 44.2% in the fourth quarter, adding 87,265 shares and bringing its total holding to 284,898 shares worth about $92.2 million.
• HEICO reported stronger-than-expected quarterly results, with EPS of $1.66 versus $1.33 expected and revenue of $1.38 billion versus $1.25 billion expected, while sales rose 25.3% year over year.
• Analysts remain broadly positive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $371.63, though recent insider sales and a dividend announcement were also noted.

Munro Partners lifted its stake in shares of Heico Corporation (NYSE:HEI - Free Report) by 44.2% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 284,898 shares of the aerospace company's stock after acquiring an additional 87,265 shares during the period. Heico makes up 2.4% of Munro Partners' investment portfolio, making the stock its 17th biggest position. Munro Partners owned about 0.20% of Heico worth $92,190,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently made changes to their positions in the stock. American Century Companies Inc. lifted its holdings in shares of Heico by 45.7% during the 3rd quarter. American Century Companies Inc. now owns 769,704 shares of the aerospace company's stock worth $248,476,000 after acquiring an additional 241,559 shares during the last quarter. Two Sigma Investments LP lifted its stake in Heico by 0.6% in the third quarter. Two Sigma Investments LP now owns 558,661 shares of the aerospace company's stock worth $180,347,000 after purchasing an additional 3,166 shares during the last quarter. Fisher Asset Management LLC lifted its stake in Heico by 12.1% in the fourth quarter. Fisher Asset Management LLC now owns 326,386 shares of the aerospace company's stock worth $105,615,000 after purchasing an additional 35,288 shares during the last quarter. Dixon Mitchell Investment Counsel Inc. lifted its stake in Heico by 1.2% in the third quarter. Dixon Mitchell Investment Counsel Inc. now owns 203,504 shares of the aerospace company's stock worth $65,695,000 after purchasing an additional 2,331 shares during the last quarter. Finally, CI Investments Inc. lifted its stake in Heico by 40.0% in the fourth quarter. CI Investments Inc. now owns 164,036 shares of the aerospace company's stock worth $53,080,000 after purchasing an additional 46,846 shares during the last quarter. 27.12% of the stock is owned by institutional investors.

Insider Activity

In related news, CAO Bradley K. Rowen sold 1,326 shares of the business's stock in a transaction dated 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 legal filing with the SEC, which is accessible through this link. Also, Director Julie Neitzel sold 676 shares of the business's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $223.00, for a total transaction of $150,748.00. The disclosure for this sale is available in the SEC filing. 4.86% of the stock is owned by insiders.

Heico Stock Performance

Shares of NYSE:HEI opened at $336.02 on Tuesday. The company has a market cap of $46.93 billion, a price-to-earnings ratio of 60.00, a price-to-earnings-growth ratio of 3.53 and a beta of 1.03. The company has a 50-day moving average price of $298.89 and a 200-day moving average price of $312.84. The company has a current ratio of 2.92, a quick ratio of 1.36 and a debt-to-equity ratio of 0.53. Heico Corporation has a 12 month low of $256.11 and a 12 month high of $361.69.

Heico (NYSE:HEI - Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The aerospace company reported $1.66 EPS for the quarter, beating the consensus estimate of $1.33 by $0.33. The firm had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.25 billion. Heico had a net margin of 16.08% and a return on equity of 17.52%. The company's quarterly revenue was up 25.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.12 earnings per share. As a group, equities analysts anticipate that Heico Corporation will post 5.78 EPS for the current year.

Heico Dividend Announcement

The business also recently declared a dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be given a dividend of $0.13 per share. The ex-dividend date is Wednesday, July 1st. This represents a dividend yield of 8.0%. Heico's payout ratio is currently 4.29%.

Analysts Set New Price Targets

Several research firms have weighed in on HEI. Weiss Ratings downgraded shares of Heico from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 22nd. Jefferies Financial Group reissued a "buy" rating and issued a $410.00 price target (up from $375.00) on shares of Heico in a research note on Thursday, May 28th. UBS Group reissued a "neutral" rating and issued a $390.00 price target (up from $371.00) on shares of Heico in a research note on Monday, June 1st. BNP Paribas Exane raised shares of Heico from a "neutral" rating to an "outperform" rating in a research note on Friday, February 27th. Finally, Susquehanna boosted their price target on shares of Heico from $321.00 to $365.00 and gave the stock a "neutral" rating in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $371.63.

Heico Profile

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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