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

Key Points

• HEICO shares reached a new 52-week high of $369.67, up from a prior close of $360.44. Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $374.56, while Jefferies and Citigroup raised their targets to $410.
• The company reported a strong quarter, with earnings per share of $1.66 versus the $1.33 consensus estimate and revenue of $1.38 billion versus $1.25 billion expected. Revenue increased 25.3% year over year, supported by a 16.08% net margin and 17.52% return on equity.
• HEICO’s valuation is elevated, with a market capitalization of $51.51 billion and a P/E ratio of 65.86. The company paid a $0.13 dividend, while institutional investors own 27.12% of shares and an insider recently sold stock.

Shares of Heico Corporation (NYSE:HEI - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $369.67 and last traded at $369.2210, with a volume of 153355 shares trading hands. The stock had previously closed at $360.44.

Analyst Ratings Changes

Several analysts recently commented on the company. Jefferies Financial Group reaffirmed a "buy" rating and set a $410.00 price objective (up from $375.00) on shares of Heico in a research note on Thursday, May 28th. Citigroup reissued a "buy" rating and issued a $410.00 target price (up from $403.00) on shares of Heico in a research note on Wednesday, July 1st. Zacks Research upgraded Heico from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 9th. Truist Financial raised Heico to a "strong-buy" rating in a research report on Friday, May 1st. Finally, Rothschild & Co Redburn set a $360.00 price objective on Heico and gave the company a "buy" rating in a report on Wednesday, May 13th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Heico presently has an average rating of "Moderate Buy" and an average target price of $374.56.

Heico Price Performance

The company has a debt-to-equity ratio of 0.53, a current ratio of 2.92 and a quick ratio of 1.36. The company's 50-day moving average price is $342.80 and its 200-day moving average price is $318.43. The company has a market cap of $51.51 billion, a P/E ratio of 65.86, a P/E/G ratio of 3.69 and a beta of 1.04.

Heico (NYSE:HEI - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The aerospace company reported $1.66 EPS for the quarter, beating the consensus estimate of $1.33 by $0.33. The business had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.25 billion. Heico had a net margin of 16.08% and a return on equity of 17.52%. The firm's revenue was up 25.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.12 EPS. As a group, sell-side analysts predict that Heico Corporation will post 5.95 earnings per share for the current fiscal year.

Heico Dividend Announcement

The company also recently declared a dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a $0.13 dividend. This represents a dividend yield of 7.0%. The ex-dividend date was Wednesday, July 1st. Heico's payout ratio is 4.64%.

Insider Buying and Selling at Heico

In other news, CAO Bradley K. Rowen sold 1,326 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $241.63, for a total transaction of $320,401.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 4.86% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Heico

Several institutional investors have recently bought and sold shares of HEI. Barrett & Company Inc. boosted its position in Heico by 75.0% during the 2nd quarter. Barrett & Company Inc. now owns 2,812 shares of the aerospace company's stock worth $1,002,000 after acquiring an additional 1,205 shares during the last quarter. CPC Advisors LLC raised its holdings in shares of Heico by 1.9% in the second quarter. CPC Advisors LLC now owns 9,366 shares of the aerospace company's stock valued at $3,336,000 after purchasing an additional 179 shares during the last quarter. Avidian Wealth Enterprises LLC acquired a new stake in shares of Heico in the second quarter valued at approximately $282,000. BankChampaign National Association lifted its position in shares of Heico by 6.3% in the second quarter. BankChampaign National Association now owns 2,834 shares of the aerospace company's stock worth $1,009,000 after purchasing an additional 169 shares in the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. acquired a new position in Heico during the second quarter worth $1,262,000. Institutional investors own 27.12% of the company's stock.

Heico Company Profile

HEICO Corporation is an aerospace, defense and electronics company that designs, manufactures, and sells a range of products and provides repair and aftermarket services. Headquartered in Hollywood, Florida, HEICO supplies replacement components, repair services and engineered systems for commercial and business aviation, military and space markets as well as for selected industrial and medical customers. The company's offerings are focused on sustaining and improving the reliability and availability of complex equipment across its end markets.

HEICO operates through two principal business areas.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source