Heico (NYSE:HEI) Stock Breaks Above Two Hundred Day Moving Average - Here's Why

Key Points

• Heico shares broke above their 200-day moving average, trading as high as $327.47 and last changing hands near $326.62, up 5.1%.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $387.33; targets range from $335 to $491.
• Heico exceeded quarterly expectations, reporting $1.67 in EPS versus $1.51 expected and $1.41 billion in revenue, up 23.1% year over year.

Shares of Heico Corporation (NYSE:HEI - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $320.16 and traded as high as $327.47. Heico shares last traded at $326.6210, with a volume of 521,783 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Jefferies Financial Group set a $430.00 price target on shares of Heico and gave the stock a "buy" rating in a research report on Wednesday, August 26th. UBS Group restated a "neutral" rating and issued a $396.00 target price (up from $382.00) on shares of Heico in a research report on Thursday, August 27th. The Goldman Sachs Group restated a "buy" rating and issued a $491.00 price target on shares of Heico in a research note on Monday, August 31st. Deutsche Bank Aktiengesellschaft raised their price target on shares of Heico from $421.00 to $425.00 and gave the company a "buy" rating in a research note on Friday, August 28th. Finally, Wells Fargo & Company cut their price target on Heico from $350.00 to $335.00 and set an "equal weight" rating on the stock in a report on Wednesday, September 30th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $387.33.

Heico Trading Up 5.1%

The business's 50 day moving average price is $312.85 and its two-hundred day moving average price is $320.16. The company has a market capitalization of $45.65 billion, a price-to-earnings ratio of 54.35, a price-to-earnings-growth ratio of 2.60 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 (NYSE:HEI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The aerospace company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.16. Heico had a return on equity of 18.00% and a net margin of 16.38%. The company had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.36 billion. During the same period last year, the firm earned $1.26 EPS. The firm's revenue for the quarter was up 23.1% on a year-over-year basis. Equities analysts forecast that Heico Corporation will post 6.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Heico news, Director Adolfo Henriques acquired 795 shares of the stock in a transaction dated Thursday, October 8th. The shares were bought at an average price of $220.30 per share, with a total value of $175,138.50. Following the purchase, the director directly owned 24,864 shares of the company's stock, valued at approximately $5,477,539.20. This trade represents a 3.30% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Nanda Kumar Cheruvatath bought 795 shares of the company's stock in a transaction that occurred on Thursday, October 8th. The stock was acquired at an average price of $220.30 per share, for a total transaction of $175,138.50. Following the completion of the acquisition, the director directly owned 4,877 shares in the company, valued at approximately $1,074,403.10. This represents a 19.48% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 5,362 shares of company stock worth $1,225,430 in the last ninety days. Insiders own 4.86% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in HEI. Bank of New York Mellon Corp acquired a new position in shares of Heico during the 2nd quarter worth $54,386,000. Weitz Investment Management Inc. acquired a new stake in shares of Heico in the 2nd quarter valued at $52,737,000. Freestone Grove Partners LP acquired a new stake in shares of Heico in the 2nd quarter valued at $50,276,000. Liontrust Investment Partners LLP acquired a new stake in shares of Heico in the 2nd quarter valued at $29,744,000. Finally, Bath Savings Trust Co boosted its holdings in Heico by 5.4% in the third quarter. Bath Savings Trust Co now owns 49,570 shares of the aerospace company's stock worth $15,029,000 after purchasing an additional 2,542 shares in the last quarter. Institutional investors and hedge funds own 27.12% of the company's stock.

Heico Company Profile

HEICO Corporation NYSE: HEI is an aerospace, defense, electronics and specialty industrial company headquartered in Hollywood, Florida. Founded in 1957, the company serves commercial aviation, defense, space, medical, telecommunications and other specialized markets.

HEICO operates through two primary business groups. Its Flight Support Group produces and distributes FAA-approved aircraft replacement parts, jet-engine components, specialized aircraft equipment and other products used by commercial and military aircraft operators.

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