Insider Buying: Heico (NYSE:HEI) Director Buys 795 Shares of Company Stock

Key Points

• Insider purchase: Heico Director Nandakumar Cheruvatath bought 795 shares at an average price of $220.30, investing $175,138.50 and increasing his ownership by 19.48% to 4,877 shares.
• Strong quarterly results: Heico reported quarterly EPS of $1.67, beating estimates of $1.51, while revenue reached $1.41 billion and grew 23.1% year over year.
• Analyst outlook remains positive: The stock has a consensus “Moderate Buy” rating and an average price target of $387, compared with a recent trading price of $297.21.

Heico Corporation (NYSE:HEI - Get Free Report) Director Nandakumar Cheruvatath bought 795 shares of the stock in a transaction on Thursday, October 8th. The shares were acquired at an average cost of $220.30 per share, for a total transaction of $175,138.50. Following the purchase, the director owned 4,877 shares in the company, valued at $1,074,403.10. The trade was a 19.48% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

Heico Price Performance

Shares of NYSE HEI traded up $0.12 during mid-day trading on Tuesday, reaching $297.21. The company's stock had a trading volume of 477,999 shares, compared to its average volume of 578,031. The stock has a 50-day moving average of $328.21 and a two-hundred day moving average of $320.11. The stock has a market capitalization of $41.54 billion, a P/E ratio of 49.45, a P/E/G ratio of 2.51 and a beta of 1.09. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.27 and a current ratio of 2.72. Heico Corporation has a 1-year low of $256.11 and a 1-year high of $376.86.

Heico (NYSE:HEI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 25th. The aerospace company reported $1.67 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.16. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.36 billion. Heico had a net margin of 16.38% and a return on equity of 18.00%. The company's revenue for the quarter was up 23.1% on a year-over-year basis. During the same period last year, the firm posted $1.26 earnings per share. On average, equities research analysts anticipate that Heico Corporation will post 6.25 EPS for the current fiscal year.

Institutional Trading of Heico

Hedge funds and other institutional investors have recently made changes to their positions in the company. DSM Capital Partners LLC raised its position in shares of Heico by 5.4% during the 1st quarter. DSM Capital Partners LLC now owns 807 shares of the aerospace company's stock valued at $221,000 after buying an additional 41 shares during the period. Fortress Financial Solutions LLC increased its stake in Heico by 2.8% during the first quarter. Fortress Financial Solutions LLC now owns 1,796 shares of the aerospace company's stock worth $493,000 after acquiring an additional 49 shares during the last quarter. Bayban increased its stake in Heico by 19.6% during the first quarter. Bayban now owns 330 shares of the aerospace company's stock worth $90,000 after acquiring an additional 54 shares during the last quarter. Athena Wealth Management LLC increased its stake in Heico by 5.8% during the third quarter. Athena Wealth Management LLC now owns 996 shares of the aerospace company's stock worth $302,000 after acquiring an additional 55 shares during the last quarter. Finally, Mirador Capital Partners LP raised its position in Heico by 1.2% in the second quarter. Mirador Capital Partners LP now owns 5,742 shares of the aerospace company's stock valued at $2,045,000 after purchasing an additional 66 shares during the period. Institutional investors and hedge funds own 27.12% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Citigroup boosted their target price on Heico from $429.00 to $441.00 and gave the stock a "buy" rating in a report on Friday, August 28th. Wells Fargo & Company cut their price target on Heico from $350.00 to $335.00 and set an "equal weight" rating for the company in a report on Wednesday, September 30th. Weiss Ratings upgraded Heico from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. Jefferies Financial Group set a $430.00 price objective on Heico and gave the stock a "buy" rating in a research report on Wednesday, August 26th. Finally, Stifel Nicolaus set a $410.00 target price on Heico in a research note on Thursday, August 27th. Three research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $387.00.

About Heico

HEICO Corporation is an aerospace, defense, and electronics company that designs, manufactures, and distributes specialized products for commercial aviation, defense, space, medical, telecommunications, and other industrial markets. Founded in 1957, the company is headquartered in Hollywood, Florida, and serves customers worldwide, including airlines, original equipment manufacturers, government agencies, and defense contractors.

HEICO operates through two primary segments. Its Flight Support Group produces FAA-approved replacement parts for jet engines and aircraft components, as well as provides aircraft and engine component repair, overhaul, and maintenance services.

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