Heico (NYSE:HEI) Announces Quarterly Earnings Results, Beats Expectations By $0.14 EPS

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) issued its earnings results on Monday. The aerospace company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.12 by $0.14, Zacks reports. Heico had a net margin of 14.96% and a return on equity of 16.29%. The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter in the previous year, the company earned $0.97 EPS. The firm's revenue for the quarter was up 15.7% compared to the same quarter last year.

Heico Price Performance

Heico stock traded down $5.88 during midday trading on Friday, reaching $312.19. The company's stock had a trading volume of 427,040 shares, compared to its average volume of 505,436. Heico has a 52 week low of $216.68 and a 52 week high of $338.92. The company has a current ratio of 3.35, a quick ratio of 1.56 and a debt-to-equity ratio of 0.58. The business has a 50-day moving average price of $318.36 and a 200-day moving average price of $282.52. The stock has a market cap of $43.43 billion, a PE ratio of 68.31, a price-to-earnings-growth ratio of 3.94 and a beta of 1.11.

Heico Increases Dividend

The business also recently declared a semi-annual dividend, which was paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st were given a $0.12 dividend. The ex-dividend date was Tuesday, July 1st. This is an increase from Heico's previous semi-annual dividend of $0.11. This represents a dividend yield of 10.0%. Heico's dividend payout ratio (DPR) is 5.25%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on HEI. Truist Financial upped their price target on Heico from $352.00 to $366.00 and gave the company a "buy" rating in a research note on Wednesday. Royal Bank Of Canada set a $350.00 target price on Heico in a research note on Wednesday. Wall Street Zen raised Heico from a "hold" rating to a "buy" rating in a research note on Saturday. 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. Finally, Robert W. Baird upped their price target on Heico from $360.00 to $400.00 and gave the stock an "outperform" rating in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $340.18.

Insider Buying and Selling at Heico

In related news, Director Alan Schriesheim sold 35,000 shares of Heico stock in a transaction that occurred 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 transaction, the director directly owned 122,197 shares of the company's stock, valued at $36,458,696.92. The trade was a 22.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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 that occurred on Tuesday, July 15th. The stock was 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 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 90 days. Insiders own 9.55% of the company's stock.

Institutional Investors Weigh In On Heico

A number of hedge funds have recently added to or reduced their stakes in HEI. Acadian Asset Management LLC increased its holdings in Heico by 216.7% in the first quarter. Acadian Asset Management LLC now owns 1,381 shares of the aerospace company's stock worth $368,000 after purchasing an additional 945 shares in the last quarter. Evergreen Capital Management LLC increased its holdings in Heico by 30.5% in the second quarter. Evergreen Capital Management LLC now owns 1,121 shares of the aerospace company's stock worth $368,000 after purchasing an additional 262 shares in the last quarter. Sandler Capital Management bought a new stake in Heico in the second quarter worth approximately $1,179,000. BI Asset Management Fondsmaeglerselskab A S increased its holdings in shares of Heico by 10.8% during the second 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. Finally, IHT Wealth Management LLC increased its holdings in shares of Heico by 2.1% during the second quarter. IHT Wealth Management LLC now owns 5,717 shares of the aerospace company's stock valued at $1,875,000 after acquiring an additional 117 shares in the last quarter. 27.12% of the stock is currently owned by institutional investors.

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.