Heico (NYSE:HEI) Hits New 12-Month High - Should You Buy?

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%.

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

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Truist Financial raised their price target on Heico from $323.00 to $352.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Stifel Nicolaus set a $352.00 price target on Heico and gave the stock a "buy" rating in a research report on Tuesday, June 24th. Barclays set a $280.00 price target on Heico and gave the stock an "equal weight" rating in a research report on Monday, June 2nd. UBS Group raised their price target on Heico from $264.00 to $306.00 and gave the stock a "neutral" rating in a research report on Thursday, May 29th. Finally, Wall Street Zen lowered Heico from a "buy" rating to a "hold" rating in a research report on Friday, July 18th. Six analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to MarketBeat, Heico currently has a consensus rating of "Moderate Buy" and a consensus price target of $301.45.

Heico Stock Performance

The stock has a market capitalization of $43.61 billion, a PE ratio of 73.25, a price-to-earnings-growth ratio of 3.94 and a beta of 1.11. The stock has a fifty day moving average of $316.05 and a 200-day moving average of $274.64. The company has a quick ratio of 1.56, a current ratio of 3.43 and a debt-to-equity ratio of 0.56.

Heico (NYSE:HEI - Get Free Report) last released 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 firm had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.06 billion. Heico had a return on equity of 15.88% and a net margin of 14.54%. Heico's 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. Equities analysts anticipate that Heico Corporation will post 4.2 earnings per share for the current fiscal year.

Heico Increases Dividend

The firm also recently declared a semi-annual dividend, which was paid on Tuesday, July 15th. Shareholders of record on Tuesday, July 1st were paid a $0.12 dividend. This is a boost from Heico's previous semi-annual dividend of $0.11. This represents a yield of 10.0%. The ex-dividend date was Tuesday, July 1st. Heico's payout ratio is 5.61%.

Insider Buying and Selling at Heico

In other Heico news, Director Frank J. Schwitter sold 356 shares of the firm's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $299.10, for a total value of $106,479.60. Following the sale, the director directly owned 1,500 shares in the company, valued at $448,650. This trade represents a 19.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Laurans A. Mendelson sold 56,300 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $319.45, for a total value of $17,985,035.00. Following the completion of 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. Corporate insiders own 9.55% of the company's stock.

Institutional Trading of Heico

A number of hedge funds and other institutional investors have recently bought and sold shares of HEI. Ridgewood Investments LLC raised its stake in Heico by 92.0% in the first quarter. Ridgewood Investments LLC now owns 96 shares of the aerospace company's stock valued at $26,000 after buying an additional 46 shares in the last quarter. NBC Securities Inc. acquired a new stake in shares of Heico during the first quarter worth about $27,000. Costello Asset Management INC acquired a new stake in shares of Heico during the first quarter worth about $27,000. Banque Transatlantique SA acquired a new stake in shares of Heico during the fourth quarter worth about $44,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Heico by 17,800.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 179 shares of the aerospace company's stock worth $48,000 after purchasing an additional 178 shares in the last quarter. 27.12% of the stock is currently owned by institutional investors and hedge funds.

About Heico

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.