Hexcel Corporation (NYSE:HXL) Sees Significant Decline in Short Interest

Key Points

• Short interest fell sharply in March, down 14.0% to 4,994,376 shares (about 6.7% of shares sold short) with a days-to-cover ratio of 3.3.
• Earnings beat and guidance: Hexcel reported $0.52 EPS versus a $0.50 consensus and revenue of $491.3M (up 3.7% y/y), and set FY2026 guidance of $2.10–$2.30 while analysts expect about $2.14.
• Shares traded up roughly 5% to $80.88; the company has a $6.14B market cap and a P/E of 59.04, and it raised its quarterly dividend to $0.18 (annualized $0.72, ~0.9% yield).

Hexcel Corporation (NYSE:HXL - Get Free Report) was the recipient of a large decrease in short interest during the month of March. As of March 13th, there was short interest totaling 4,994,376 shares, a decrease of 14.0% from the February 26th total of 5,810,277 shares. Approximately 6.7% of the shares of the stock are sold short. Based on an average daily volume of 1,499,827 shares, the days-to-cover ratio is currently 3.3 days.

Hexcel Trading Up 5.0%

Shares of NYSE HXL traded up $3.82 during mid-day trading on Tuesday, hitting $80.88. The stock had a trading volume of 792,519 shares, compared to its average volume of 1,296,304. The business has a 50 day moving average price of $85.23 and a two-hundred day moving average price of $75.97. Hexcel has a 1 year low of $45.28 and a 1 year high of $95.22. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.25 and a current ratio of 2.26. The firm has a market cap of $6.14 billion, a P/E ratio of 59.04, a price-to-earnings-growth ratio of 1.22 and a beta of 1.01.

Hexcel (NYSE:HXL - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The aerospace company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.02. Hexcel had a net margin of 5.78% and a return on equity of 9.54%. The business had revenue of $491.30 million during the quarter, compared to analysts' expectations of $484.46 million. During the same quarter in the prior year, the company posted $0.52 EPS. The firm's revenue for the quarter was up 3.7% compared to the same quarter last year. Hexcel has set its FY 2026 guidance at 2.100-2.300 EPS. On average, equities analysts anticipate that Hexcel will post 2.14 EPS for the current fiscal year.

Hexcel Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 9th were paid a $0.18 dividend. The ex-dividend date of this dividend was Monday, February 9th. This is a boost from Hexcel's previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 0.9%. Hexcel's payout ratio is 52.17%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Royal Bank Of Canada lifted their price target on shares of Hexcel from $92.00 to $95.00 and gave the stock an "outperform" rating in a research note on Friday, January 30th. Jefferies Financial Group increased their target price on shares of Hexcel from $75.00 to $90.00 and gave the company a "hold" rating in a report on Sunday, February 1st. The Goldman Sachs Group boosted their price target on shares of Hexcel from $67.00 to $75.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 20th. Morgan Stanley upgraded shares of Hexcel from an "underweight" rating to an "equal weight" rating and upped their price target for the company from $67.00 to $90.00 in a research report on Friday, January 30th. Finally, UBS Group set a $99.00 price objective on Hexcel in a research note on Friday, January 30th. Three research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $82.17.

Insider Buying and Selling at Hexcel

In related news, insider Amy S. Evans sold 1,500 shares of the business's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $92.80, for a total value of $139,200.00. Following the completion of the sale, the insider owned 1,979 shares in the company, valued at $183,651.20. The trade was a 43.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 2.03% of the company's stock.

Institutional Investors Weigh In On Hexcel

Several institutional investors and hedge funds have recently bought and sold shares of the business. MMA Asset Management LLC purchased a new position in shares of Hexcel during the third quarter valued at approximately $35,000. Optiver Holding B.V. lifted its stake in Hexcel by 469.3% in the third quarter. Optiver Holding B.V. now owns 575 shares of the aerospace company's stock worth $36,000 after acquiring an additional 474 shares during the period. Prosperity Bancshares Inc bought a new stake in Hexcel in the fourth quarter valued at $36,000. Transamerica Financial Advisors LLC increased its position in Hexcel by 181.1% during the 4th quarter. Transamerica Financial Advisors LLC now owns 506 shares of the aerospace company's stock valued at $37,000 after purchasing an additional 326 shares during the period. Finally, Smartleaf Asset Management LLC increased its position in Hexcel by 8,671.4% during the 3rd quarter. Smartleaf Asset Management LLC now owns 614 shares of the aerospace company's stock valued at $38,000 after purchasing an additional 607 shares during the period. Hedge funds and other institutional investors own 95.47% of the company's stock.

About Hexcel

Hexcel Corporation is a global leader in advanced composite materials for aerospace and industrial applications. The company specializes in the development and manufacture of lightweight, high-performance products that enhance fuel efficiency, durability and structural strength. Its offerings are critical to the aerospace sector, where demand for lighter, more efficient aircraft drives continuous innovation in materials.

Hexcel's product portfolio encompasses carbon fiber reinforcements, pre-impregnated composites (prepregs), honeycomb core, engineered adhesives and structural film adhesives.

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