Royal Bank of Canada Cuts Stake in Hexcel Corporation $HXL

Key Points

• Royal Bank of Canada reduced its Hexcel stake by 10.8% in the first quarter, selling 11,314 shares and retaining 93,874 shares valued at approximately $7.6 million. Institutional investors collectively own 95.47% of Hexcel.
• Analysts maintain a cautious outlook, with Hexcel receiving a consensus “Hold” rating and an average price target of $107.18. Recent ratings included multiple downgrades to neutral or market-perform despite higher price targets.
• Hexcel exceeded quarterly earnings expectations, reporting $0.66 EPS and $529.3 million in revenue, with revenue up 8% year over year. The company reaffirmed fiscal 2026 EPS guidance of $2.30–$2.40 and declared a quarterly dividend of $0.18 per share.

Royal Bank of Canada cut its holdings in shares of Hexcel Corporation (NYSE:HXL - Free Report) by 10.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 93,874 shares of the aerospace company's stock after selling 11,314 shares during the quarter. Royal Bank of Canada owned 0.12% of Hexcel worth $7,597,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC increased its position in shares of Hexcel by 2.3% during the first quarter. Sequoia Financial Advisors LLC now owns 5,340 shares of the aerospace company's stock worth $432,000 after acquiring an additional 119 shares during the period. Clearstead Advisors LLC boosted its holdings in Hexcel by 18.2% in the fourth quarter. Clearstead Advisors LLC now owns 817 shares of the aerospace company's stock valued at $60,000 after purchasing an additional 126 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in Hexcel by 1.1% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 11,928 shares of the aerospace company's stock valued at $881,000 after purchasing an additional 128 shares during the period. Geneos Wealth Management Inc. grew its stake in Hexcel by 21.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 924 shares of the aerospace company's stock worth $52,000 after purchasing an additional 165 shares in the last quarter. Finally, Covestor Ltd grew its stake in Hexcel by 42.1% during the 4th quarter. Covestor Ltd now owns 570 shares of the aerospace company's stock worth $42,000 after purchasing an additional 169 shares in the last quarter. Hedge funds and other institutional investors own 95.47% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. The Goldman Sachs Group increased their price target on Hexcel from $88.00 to $97.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Wolfe Research cut shares of Hexcel from an "outperform" rating to a "peer perform" rating in a report on Friday, July 31st. Bank of America downgraded shares of Hexcel from a "peer perform" rating to a "market perform" rating and set a $110.00 price target for the company. in a research note on Monday, August 3rd. TD Cowen boosted their price target on shares of Hexcel from $85.00 to $100.00 and gave the stock a "hold" rating in a report on Monday, July 13th. Finally, Morgan Stanley increased their price objective on shares of Hexcel from $97.00 to $110.00 and gave the company an "equal weight" rating in a research report on Friday, July 31st. Five analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Hexcel has a consensus rating of "Hold" and an average target price of $107.18.

Hexcel Trading Down 2.9%

NYSE HXL opened at $100.40 on Tuesday. The company has a debt-to-equity ratio of 0.74, a current ratio of 2.43 and a quick ratio of 1.37. The firm's fifty day moving average price is $99.86 and its 200 day moving average price is $91.20. The company has a market capitalization of $7.59 billion, a price-to-earnings ratio of 50.45, a price-to-earnings-growth ratio of 1.48 and a beta of 1.06. Hexcel Corporation has a 12 month low of $59.79 and a 12 month high of $111.74.

Hexcel (NYSE:HXL - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The aerospace company reported $0.66 earnings per share for the quarter, beating analysts' consensus estimates of $0.57 by $0.09. Hexcel had a net margin of 7.76% and a return on equity of 12.34%. The firm had revenue of $529.30 million during the quarter, compared to analysts' expectations of $528.08 million. During the same period in the previous year, the company earned $0.50 earnings per share. Hexcel's quarterly revenue was up 8.0% compared to the same quarter last year. Hexcel has set its FY 2026 guidance at 2.300-2.400 EPS. On average, sell-side analysts expect that Hexcel Corporation will post 2.36 earnings per share for the current fiscal year.

Hexcel Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Monday, August 10th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, August 10th. Hexcel's payout ratio is presently 36.18%.

Hexcel Profile

Hexcel Corporation is a global leader in advanced composite materials for aerospace and industrial applications. The company specializes in the development and manufacture of lightweight, high-performance products that enhance fuel efficiency, durability and structural strength. Its offerings are critical to the aerospace sector, where demand for lighter, more efficient aircraft drives continuous innovation in materials.

Hexcel's product portfolio encompasses carbon fiber reinforcements, pre-impregnated composites (prepregs), honeycomb core, engineered adhesives and structural film adhesives.

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