Heico (NYSE:HEI) Reaches New 52-Week High - Here's Why

Key Points

• Heico Corporation's shares reached a new 52-week high, trading at $335.27, following several analysts adjusting their price targets upward, with Bank of America raising its target to $355.00.
• The firm reported strong quarterly earnings, with a net revenue of $1.10 billion and EPS of $1.12, exceeding analyst expectations.
• Heico recently increased its semi-annual dividend from $0.11 to $0.12, reflecting a solid dividend yield of 10.0%.

Heico Corporation (NYSE:HEI - Get Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $334.15 and last traded at $335.27, with a volume of 93733 shares changing hands. The stock had previously closed at $325.09.

Wall Street Analyst Weigh In

Several research firms recently commented on HEI. 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. Wall Street Zen downgraded shares of Heico from a "buy" rating to a "hold" rating in a research report on Friday, July 18th. Bank of America increased their price objective 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. Wells Fargo & Company increased their price objective on shares of Heico from $244.00 to $278.00 and gave the company an "equal weight" rating in a research report on Friday, May 30th. Finally, Morgan Stanley increased their price objective on shares of Heico from $305.00 to $330.00 and gave the company an "equal weight" rating in a research report on Thursday, July 17th. Six research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat, Heico currently has a consensus rating of "Moderate Buy" and an average price target of $301.45.

Heico Trading Up 0.2%

The company has a debt-to-equity ratio of 0.56, a current ratio of 3.43 and a quick ratio of 1.56. The stock has a market cap of $43.66 billion, a price-to-earnings ratio of 73.32, a P/E/G ratio of 4.20 and a beta of 1.11. The business's fifty day simple moving average is $315.01 and its 200 day simple moving average is $273.29.

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

Heico Increases Dividend

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

Insider Activity at Heico

In related news, Director Alan Schriesheim sold 35,000 shares of Heico stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $298.36, for a total transaction of $10,442,600.00. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Laurans A. Mendelson sold 56,300 shares of Heico stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $319.45, for a total transaction of $17,985,035.00. Following the sale, the chairman owned 1,253,127 shares in the company, valued at approximately $400,311,420.15. This represents a 4.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 91,656 shares of company stock worth $28,534,115 over the last ninety days. 9.55% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Heico

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Ridgewood Investments LLC raised its position in Heico by 36.5% in the second quarter. Ridgewood Investments LLC now owns 131 shares of the aerospace company's stock worth $43,000 after acquiring an additional 35 shares in the last quarter. Barrett & Company Inc. raised its position in Heico by 1.6% in the second quarter. Barrett & Company Inc. now owns 3,216 shares of the aerospace company's stock worth $1,055,000 after acquiring an additional 50 shares in the last quarter. United Capital Financial Advisors LLC raised its position in Heico by 5.7% in the fourth quarter. United Capital Financial Advisors LLC now owns 1,043 shares of the aerospace company's stock worth $248,000 after acquiring an additional 56 shares in the last quarter. Emerald Advisers LLC raised its position in Heico by 1.9% in the second quarter. Emerald Advisers LLC now owns 3,000 shares of the aerospace company's stock worth $984,000 after acquiring an additional 56 shares in the last quarter. Finally, Moody Lynn & Lieberson LLC raised its position in Heico by 1.4% in the second quarter. Moody Lynn & Lieberson LLC now owns 4,230 shares of the aerospace company's stock worth $1,387,000 after acquiring an additional 60 shares in the last quarter. 27.12% of the stock is currently owned by institutional investors.

Heico Company Profile

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.