Heico (NYSE:HEI) Upgraded to Buy at Wall Street Zen

Key Points

• Heico has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, signaling increased investor confidence in the stock's potential.
• Analysts have adjusted their price targets for Heico, with Robert W. Baird increasing it from $360 to $400, while the consensus price target is now $340.18.
• In recent earnings, Heico reported a 15.7% year-over-year revenue increase, achieving $1.15 billion, and exceeding analysts' EPS expectations by $0.14.

Heico (NYSE:HEI - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts have also recently issued reports on HEI. Stifel Nicolaus set a $360.00 price objective on shares of Heico in a research report on Tuesday, August 26th. Robert W. Baird increased their price objective on Heico from $360.00 to $400.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 27th. Bank of America lifted their target price on 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 raised their price target on Heico from $244.00 to $278.00 and gave the company an "equal weight" rating in a research note on Friday, May 30th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Heico in a research note on Monday, August 18th. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $342.00.

Heico Trading Up 1.2%

NYSE:HEI traded up $3.91 during midday trading on Friday, hitting $322.75. 362,305 shares of the company traded hands, compared to its average volume of 428,498. The firm has a market capitalization of $44.89 billion, a P/E ratio of 70.62, a P/E/G ratio of 3.90 and a beta of 1.08. The firm's fifty day moving average is $318.21 and its 200-day moving average is $285.11. Heico has a 12-month low of $216.68 and a 12-month high of $338.92. The company has a current ratio of 3.35, a quick ratio of 1.51 and a debt-to-equity ratio of 0.58.

Heico (NYSE:HEI - Get Free Report) last posted its quarterly earnings data on Monday, August 25th. The aerospace company reported $1.26 EPS for the quarter, topping the consensus estimate of $1.12 by $0.14. The company had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.11 billion. Heico had a net margin of 14.96% and a return on equity of 16.29%. Heico's quarterly revenue was up 15.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.97 earnings per share. On average, sell-side analysts predict that Heico will post 4.2 EPS for the current year.

Insider Transactions at Heico

In other news, Chairman Laurans A. Mendelson sold 56,300 shares of the firm's stock in a transaction that occurred 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 owned 1,253,127 shares of the company's stock, valued at approximately $400,311,420.15. This trade represents a 4.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 9.55% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HEI. Bain Capital Public Equity Management II LLC purchased a new stake in shares of Heico in the fourth quarter valued at $110,503,000. Congress Asset Management Co. lifted its position in Heico by 366.0% during the second quarter. Congress Asset Management Co. now owns 308,457 shares of the aerospace company's stock valued at $101,174,000 after buying an additional 242,264 shares in the last quarter. American Century Companies Inc. increased its holdings in Heico by 68.9% in the 2nd quarter. American Century Companies Inc. now owns 528,145 shares of the aerospace company's stock valued at $173,232,000 after purchasing an additional 215,530 shares in the last quarter. Munro Partners purchased a new stake in shares of Heico during the 2nd quarter valued at about $59,720,000. Finally, Mackenzie Financial Corp acquired a new position in Heico in the 1st quarter worth $40,949,000. Institutional investors and hedge funds own 27.12% of the company's stock.

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.