Heico (NYSE:HEI) Issues Earnings Results

Key Points

• Heico reported quarterly earnings of $1.26 per share, exceeding expectations by $0.14 and maintaining a net margin of 14.54%.
• The company raised its semi-annual dividend to $0.12, an increase from $0.11, translating to a yield of 10.0%.
• Insider trading activity included sales by Director Alan Schriesheim and Chairman Laurans A. Mendelson, with notable decreases in their stock positions of 22.27% and 4.30%, respectively.

Heico (NYSE:HEI - Get Free Report) released its quarterly earnings data on Monday. The aerospace company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.12 by $0.14, Zacks reports. Heico had a net margin of 14.54% and a return on equity of 15.88%.

Heico Stock Performance

Heico stock traded down $4.0530 during mid-day trading on Monday, hitting $305.5370. The company had a trading volume of 761,029 shares, compared to its average volume of 512,919. The company has a current ratio of 3.43, a quick ratio of 1.56 and a debt-to-equity ratio of 0.56. Heico has a 12-month low of $216.68 and a 12-month high of $338.92. The company's fifty day moving average is $317.63 and its 200-day moving average is $280.28. The company has a market capitalization of $42.50 billion, a price-to-earnings ratio of 71.39, a P/E/G ratio of 3.85 and a beta of 1.11.

Heico Increases Dividend

The company also recently announced a semi-annual dividend, which was paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st were given a $0.12 dividend. This is an increase 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 currently 5.61%.

Insider Activity

In related news, Director Alan Schriesheim sold 35,000 shares of the stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $298.36, for a total value of $10,442,600.00. Following the completion of the transaction, the director directly owned 122,197 shares of the company's stock, valued at approximately $36,458,696.92. This represents a 22.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Laurans A. Mendelson sold 56,300 shares of the 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 transaction, the chairman directly owned 1,253,127 shares of the company's stock, 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 91,656 shares of company stock worth $28,534,115 in the last quarter. Corporate insiders own 9.55% of the company's stock.

Institutional Trading of Heico

Hedge funds and other institutional investors have recently modified their holdings of the stock. IHT Wealth Management LLC increased its position in shares of Heico by 2.1% during the 2nd quarter. IHT Wealth Management LLC now owns 5,717 shares of the aerospace company's stock worth $1,875,000 after purchasing an additional 117 shares during the last quarter. Evergreen Capital Management LLC grew its position in Heico by 30.5% in the 2nd quarter. Evergreen Capital Management LLC now owns 1,121 shares of the aerospace company's stock valued at $368,000 after acquiring an additional 262 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S grew its position in Heico by 10.8% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 4,794 shares of the aerospace company's stock valued at $1,572,000 after acquiring an additional 468 shares in the last quarter. Acadian Asset Management LLC grew its position in Heico by 216.7% in the 1st quarter. Acadian Asset Management LLC now owns 1,381 shares of the aerospace company's stock valued at $368,000 after acquiring an additional 945 shares in the last quarter. Finally, Sandler Capital Management acquired a new position in Heico in the 2nd quarter valued at about $1,179,000. 27.12% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have commented on HEI. Wells Fargo & Company boosted their target price on shares of Heico from $244.00 to $278.00 and gave the company an "equal weight" rating in a research note on Friday, May 30th. Truist Financial boosted their target price on shares of Heico from $323.00 to $352.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Zacks Research raised shares of Heico to a "hold" rating in a research note on Monday, August 11th. Morgan Stanley boosted their target price on shares of Heico from $305.00 to $330.00 and gave the company an "equal weight" rating in a research note on Thursday, July 17th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Heico in a report on Monday, August 18th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $307.18.

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.

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