Heico (NYSE:HEI) Sets New 52-Week High - Still a Buy?

Key Points

• Heico shares hit a new 52-week high, trading as high as $369.48 before ending near $365.35, extending a strong run for the aerospace company.
• Recent analyst sentiment remains positive, with several firms reiterating or raising price targets; the stock currently carries a Moderate Buy consensus and an average target of about $372.06.
• Heico reported better-than-expected quarterly results, posting $1.66 EPS on $1.38 billion in revenue, and it also announced a dividend of $0.13 per share payable July 15.

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 $369.48 and last traded at $365.35, with a volume of 410642 shares. The stock had previously closed at $362.09.

Wall Street Analyst Weigh In

HEI has been the topic of several research reports. Jefferies Financial Group reissued a "buy" rating and issued a $410.00 target price (up from $375.00) on shares of Heico in a report on Thursday, May 28th. Wells Fargo & Company set a $350.00 price objective on shares of Heico and gave the stock an "equal weight" rating in a research report on Monday, June 1st. Royal Bank Of Canada increased their price objective on shares of Heico from $375.00 to $390.00 and gave the company an "outperform" rating in a research note on Friday, May 29th. Citigroup restated a "buy" rating and set a $410.00 target price (up from $403.00) on shares of Heico in a report on Wednesday, July 1st. Finally, Rothschild & Co Redburn set a $360.00 target price on shares of Heico and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Three investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $372.06.

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 has a 50-day moving average price of $317.40 and a 200-day moving average price of $316.43. The firm has a market capitalization of $51.02 billion, a PE ratio of 65.24, a P/E/G ratio of 3.86 and a beta of 1.03.

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, topping analysts' consensus estimates of $1.33 by $0.33. Heico had a return on equity of 17.52% and a net margin of 16.08%.The firm had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.25 billion. During the same quarter last year, the business posted $1.12 EPS. The firm's quarterly revenue was up 25.3% compared to the same quarter last year. Sell-side analysts forecast that Heico Corporation will post 5.78 EPS for the current year.

Heico Announces Dividend

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

Insider Buying and Selling

In related news, Director Julie Neitzel sold 676 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $223.00, for a total transaction of $150,748.00. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Bradley K. Rowen sold 1,326 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $241.63, for a total transaction of $320,401.38. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.86% of the company's stock.

Institutional Investors Weigh In On Heico

Several hedge funds have recently made changes to their positions in HEI. Diamant Asset Management Inc. increased its stake in Heico by 25,698.9% in the first quarter. Diamant Asset Management Inc. now owns 763,647 shares of the aerospace company's stock valued at $209,392,000 after purchasing an additional 760,687 shares during the last quarter. Munro Partners grew its holdings in Heico by 44.2% in the 4th quarter. Munro Partners now owns 284,898 shares of the aerospace company's stock valued at $92,190,000 after buying an additional 87,265 shares during the period. CI Investments Inc. increased its stake in shares of Heico by 40.0% during the 4th quarter. CI Investments Inc. now owns 164,036 shares of the aerospace company's stock valued at $53,080,000 after acquiring an additional 46,846 shares during the last quarter. Balyasny Asset Management L.P. boosted its position in shares of Heico by 263.2% in the third quarter. Balyasny Asset Management L.P. now owns 60,469 shares of the aerospace company's stock worth $19,521,000 after acquiring an additional 43,821 shares during the last quarter. Finally, Fisher Asset Management LLC grew its holdings in Heico by 12.1% in the fourth quarter. Fisher Asset Management LLC now owns 326,386 shares of the aerospace company's stock valued at $105,615,000 after purchasing an additional 35,288 shares during the period. Institutional investors and hedge funds own 27.12% of the company's stock.

About Heico

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.

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