Hexcel (NYSE:HXL) Raised to "Hold" at Zacks Research

Key Points

• Hexcel has been upgraded by Zacks Research from a "strong sell" rating to a "hold" rating, indicating a more positive outlook for the stock.
• Research analysts have varied opinions on Hexcel, with three analysts giving it a "buy" rating, seven a "hold" rating, and one a "sell" rating, while the consensus price target is set at $65.00.
• The company reported earnings of $0.50 per share for the latest quarter, exceeding expectations, although revenue fell 2.1% year-over-year.

Hexcel (NYSE:HXL - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Thursday, September 4th,Zacks.com reports.

HXL has been the subject of a number of other research reports. UBS Group raised shares of Hexcel from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $65.00 to $80.00 in a research report on Tuesday, September 2nd. Morgan Stanley lifted their target price on shares of Hexcel from $50.00 to $55.00 and gave the stock an "underweight" rating in a research report on Thursday, July 17th. BMO Capital Markets lifted their target price on shares of Hexcel from $52.00 to $67.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 29th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $70.00 target price (up previously from $65.00) on shares of Hexcel in a research report on Monday, July 28th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Hexcel presently has a consensus rating of "Hold" and a consensus target price of $65.00.

Hexcel Price Performance

Shares of HXL traded up $1.02 during mid-day trading on Thursday, reaching $62.93. 217,007 shares of the stock traded hands, compared to its average volume of 1,151,012. Hexcel has a 1 year low of $45.28 and a 1 year high of $71.05. The company has a current ratio of 2.69, a quick ratio of 1.50 and a debt-to-equity ratio of 0.53. The company has a market cap of $5.01 billion, a price-to-earnings ratio of 58.19, a price-to-earnings-growth ratio of 1.99 and a beta of 1.38. The firm has a fifty day moving average price of $61.35 and a 200 day moving average price of $56.82.

Hexcel (NYSE:HXL - Get Free Report) last released its quarterly earnings data on Thursday, July 24th. The aerospace company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.04. The firm had revenue of $489.90 million for the quarter, compared to analysts' expectations of $482.20 million. Hexcel had a net margin of 4.69% and a return on equity of 9.76%. The company's revenue for the quarter was down 2.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.60 earnings per share. Hexcel has set its FY 2025 guidance at 1.850-2.050 EPS. As a group, equities research analysts predict that Hexcel will post 2.14 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Thierry Merlot sold 8,897 shares of the stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $63.86, for a total value of $568,162.42. Following the completion of the sale, the insider directly owned 51,308 shares of the company's stock, valued at $3,276,528.88. This represents a 14.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Gina Fitzsimons sold 911 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $65.00, for a total transaction of $59,215.00. Following the completion of the sale, the insider directly owned 4,283 shares of the company's stock, valued at approximately $278,395. This trade represents a 17.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.39% of the company's stock.

Hedge Funds Weigh In On Hexcel

Large investors have recently made changes to their positions in the company. Trust Co. of Toledo NA OH purchased a new stake in Hexcel in the 2nd quarter valued at about $26,000. NewSquare Capital LLC grew its stake in Hexcel by 379.0% in the 2nd quarter. NewSquare Capital LLC now owns 479 shares of the aerospace company's stock worth $27,000 after acquiring an additional 379 shares in the last quarter. Park Place Capital Corp grew its stake in Hexcel by 65.1% in the 2nd quarter. Park Place Capital Corp now owns 497 shares of the aerospace company's stock worth $28,000 after acquiring an additional 196 shares in the last quarter. Hantz Financial Services Inc. bought a new position in Hexcel in the 2nd quarter worth about $28,000. Finally, Parkside Financial Bank & Trust grew its stake in Hexcel by 325.0% in the 2nd quarter. Parkside Financial Bank & Trust now owns 493 shares of the aerospace company's stock worth $28,000 after acquiring an additional 377 shares in the last quarter. 95.47% of the stock is owned by hedge funds and other institutional investors.

About Hexcel

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.