Helios Technologies (NYSE:HLIO) Shares Gap Down After Analyst Downgrade

Key Points

• Helios shares fell sharply, opening at $51.09 versus the prior close of $60.09, after analyst price-target cuts; they later traded around $54.30.
• The company reported record third-quarter sales of $229.7 million, up 4.3% year over year, and EPS of $0.80, beating the $0.75 consensus. Helios also raised its full-year 2026 sales outlook.
• Analyst views were mixed: KeyCorp cut its target to $85 but kept an “overweight” rating, while Baird downgraded the stock to “neutral” and lowered its target to $65.

Shares of Helios Technologies, Inc (NYSE:HLIO - Get Free Report) gapped down prior to trading on Friday after KeyCorp lowered their price target on the stock from $95.00 to $85.00. The stock had previously closed at $60.09, but opened at $51.09. KeyCorp currently has an overweight rating on the stock. Helios Technologies shares last traded at $54.2970, with a volume of 101,857 shares trading hands.

HLIO has been the topic of a number of other reports. Robert W. Baird lowered shares of Helios Technologies from an "outperform" rating to a "neutral" rating and lowered their price target for the stock from $90.00 to $65.00 in a research report on Friday. Wall Street Zen downgraded shares of Helios Technologies from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 8th. JPMorgan Chase & Co. increased their target price on shares of Helios Technologies from $100.00 to $110.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Weiss Ratings raised shares of Helios Technologies from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Finally, Zacks Research cut shares of Helios Technologies from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 20th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $88.75.

Helios Technologies News Summary

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

• Positive Sentiment: Helios reported record third-quarter sales of $229.7 million, up 4.3% year over year, and earnings of $0.80 per share, topping the $0.75 consensus estimate and last year’s $0.72. The company said sales exceeded the high end of its outlook and raised its full-year 2026 sales outlook. Helios Technologies Q3 2026 results
• Neutral Sentiment: KeyCorp lowered its price target to $85 from $95 but maintained an “overweight” rating, signaling continued optimism despite a more cautious valuation. KeyCorp price target update
• Negative Sentiment: Baird downgraded HLIO from “outperform” to “neutral” and cut its price target to $65 from $90. The downgrade and sharp target reduction could dampen investor confidence despite the quarterly beat. Baird downgrade and price target

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Helios Technologies in the second quarter valued at about $231,414,000. William Blair Investment Management LLC bought a new stake in Helios Technologies during the second quarter worth about $74,454,000. Bank of America Corp DE bought a new stake in Helios Technologies during the second quarter worth about $36,693,000. Jupiter Topco LLC bought a new stake in Helios Technologies during the second quarter worth about $36,438,000. Finally, Jennison Associates LLC grew its stake in Helios Technologies by 30.1% during the first quarter. Jennison Associates LLC now owns 1,035,977 shares of the company's stock worth $67,038,000 after buying an additional 239,876 shares in the last quarter. Institutional investors own 94.72% of the company's stock.

Helios Technologies Price Performance

The stock has a market capitalization of $1.77 billion, a price-to-earnings ratio of 25.07 and a beta of 1.28. The company has a quick ratio of 1.53, a current ratio of 2.74 and a debt-to-equity ratio of 0.35. The business's 50 day simple moving average is $68.82 and its 200-day simple moving average is $73.42.

Helios Technologies (NYSE:HLIO - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.75 by $0.05. The company had revenue of $229.70 million during the quarter. Helios Technologies had a net margin of 8.01% and a return on equity of 11.43%. Helios Technologies's quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.72 earnings per share. On average, research analysts forecast that Helios Technologies, Inc will post 3.17 earnings per share for the current year.

Helios Technologies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Tuesday, October 13th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, October 13th. Helios Technologies's dividend payout ratio (DPR) is 22.43%.

About Helios Technologies

Helios Technologies, Inc develops and manufactures industrial technology products for the hydraulics and electronics markets. Its offerings include hydraulic cartridge valves, manifolds and electro-hydraulic controls, as well as electronic control systems, displays, instrumentation and related connectivity solutions used in mobile equipment, industrial machinery and other specialized applications.

The company serves original equipment manufacturers and other industrial customers through a portfolio that has included the Sun Hydraulics and Enovation Controls brands.

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