L3Harris Technologies (NYSE:LHX) Trading Down 10.8% - Should You Sell?

Key Points

• L3Harris shares fell 10.8% to about $265 despite a strong second-quarter report, suggesting investors may have been disappointed that revenue guidance was not raised more aggressively or may be taking profits.
• Second-quarter adjusted EPS of $3.13 and revenue of $5.88 billion exceeded estimates, while orders reached $7.3 billion and backlog climbed to a record $42 billion.
• Management raised 2026 EPS guidance to $11.80–$12.00; analysts retain a “Moderate Buy” consensus with an average price target of $368, though the stock’s sharp decline indicates elevated near-term investor expectations.

L3Harris Technologies Inc (NYSE:LHX - Get Free Report)'s share price dropped 10.8% on Thursday . The company traded as low as $269.41 and last traded at $265.3520. 299,313 shares traded hands during trading, a decline of 79% from the average session volume of 1,437,087 shares. The stock had previously closed at $297.53.

Key Headlines Impacting L3Harris Technologies

Here are the key news stories impacting L3Harris Technologies this week:

• Positive Sentiment: Second-quarter adjusted EPS was $3.13, exceeding the $2.80 consensus estimate and rising from $2.78 a year earlier. Revenue reached approximately $5.88 billion, above the $5.81 billion estimate and up 8.4% year over year. L3Harris Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand indicators were particularly strong: orders totaled $7.3 billion, book-to-bill was 1.2 times, and backlog rose to a record $42 billion. The results point to sustained demand for defense and weapons-related systems. L3Harris Reports Second-Quarter Results
• Positive Sentiment: Profitability and cash generation improved. Operating margin was 11.1%, segment operating margin was 16.0%, operating cash flow was $879 million, and free cash flow was $771 million, with both cash-flow measures up 37% year over year. L3Harris Tops Estimates and Raises Outlook
• Positive Sentiment: Management raised fiscal 2026 EPS guidance to $11.80–$12.00, up 40 cents from its prior outlook and above the $11.67 consensus. Revenue guidance is now $23.2–$23.7 billion, broadly consistent with the $23.5 billion consensus. L3Harris Raises Guidance
• Neutral Sentiment: Analysts maintain a generally constructive view, with L3Harris receiving a consensus “Moderate Buy” rating, though the stock’s reaction indicates investors may have already priced in much of the favorable defense-demand outlook. L3Harris Receives Moderate Buy Consensus
• Negative Sentiment: L3Harris shares slipped despite the earnings and guidance beats. The decline suggests profit-taking or disappointment that the revenue outlook was not raised more aggressively, especially after strong order and backlog figures. L3Harris Shares Slip Despite Earnings Beat

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wall Street Zen raised L3Harris Technologies from a "hold" rating to a "buy" rating in a research note on Saturday, April 11th. UBS Group lowered their price target on shares of L3Harris Technologies from $362.00 to $330.00 and set a "neutral" rating on the stock in a research note on Friday, May 1st. Sanford C. Bernstein reduced their price objective on shares of L3Harris Technologies to $405.00 and set an "outperform" rating for the company in a research note on Monday, May 4th. Weiss Ratings downgraded shares of L3Harris Technologies from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Finally, Truist Financial raised L3Harris Technologies to a "strong-buy" rating in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $368.00.

L3Harris Technologies Stock Performance

The company has a current ratio of 1.03, a quick ratio of 0.89 and a debt-to-equity ratio of 0.47. The firm has a market cap of $49.44 billion, a PE ratio of 28.82, a P/E/G ratio of 1.55 and a beta of 0.51. The stock's 50 day moving average price is $298.92 and its 200 day moving average price is $328.39.

L3Harris Technologies (NYSE:LHX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.80 by $0.33. L3Harris Technologies had a return on equity of 10.65% and a net margin of 7.71%.The firm had revenue of $5.88 billion during the quarter, compared to the consensus estimate of $5.81 billion. During the same period in the prior year, the firm earned $2.78 EPS. The firm's quarterly revenue was up 8.4% compared to the same quarter last year. L3Harris Technologies has set its FY 2026 guidance at 11.800-12.000 EPS. As a group, equities analysts forecast that L3Harris Technologies Inc will post 11.54 earnings per share for the current fiscal year.

L3Harris Technologies Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be issued a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, September 4th. L3Harris Technologies's dividend payout ratio (DPR) is presently 54.29%.

Insider Buying and Selling

In other news, VP Melanie Rakita sold 2,180 shares of L3Harris Technologies stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $310.45, for a total transaction of $676,781.00. Following the sale, the vice president owned 4,192 shares in the company, valued at $1,301,406.40. This trade represents a 34.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.68% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Whitener Capital Management Inc. boosted its stake in shares of L3Harris Technologies by 8.9% during the 2nd quarter. Whitener Capital Management Inc. now owns 3,239 shares of the company's stock valued at $941,000 after buying an additional 264 shares during the last quarter. Tema ETFs LLC boosted its stake in L3Harris Technologies by 16.1% during the 2nd quarter. Tema ETFs LLC now owns 3,300 shares of the company's stock valued at $959,000 after acquiring an additional 458 shares during the last quarter. Doliver Advisors LP grew its holdings in L3Harris Technologies by 1.3% during the 2nd quarter. Doliver Advisors LP now owns 5,720 shares of the company's stock worth $1,662,000 after acquiring an additional 73 shares in the last quarter. City Holding Co. grew its holdings in L3Harris Technologies by 3.4% during the 2nd quarter. City Holding Co. now owns 10,526 shares of the company's stock worth $3,059,000 after acquiring an additional 344 shares in the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors increased its position in shares of L3Harris Technologies by 1.2% in the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 7,124 shares of the company's stock worth $2,070,000 after purchasing an additional 83 shares during the last quarter. Hedge funds and other institutional investors own 84.76% of the company's stock.

L3Harris Technologies Company Profile

L3Harris Technologies NYSE: LHX is an American aerospace and defense company formed in 2019 through the combination of L3 Technologies and Harris Corporation. Headquartered in Melbourne, Florida, the company designs, manufactures and supports a broad range of technology solutions for government and commercial customers, with a particular emphasis on defense, intelligence and public safety applications.

The company's offerings span communications systems, avionics, electronic warfare, intelligence, surveillance and reconnaissance (ISR) sensors, space systems and mission integration.

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