Honeywell Aerospace (NASDAQ:HONA) Stock Price Down 11% - Should You Sell?

Key Points

• Honeywell Aerospace shares fell about 11% to roughly $157.47, with trading volume below average. The stock has a market capitalization of approximately $51.1 billion and a high P/E ratio of 86.5.
• Despite the selloff, third-quarter revenue rose 2% to $4.6 billion and adjusted EPS of $2.21 exceeded the $1.90 consensus estimate. Management also raised full-year adjusted EPS guidance to $7.85–$8.00 and introduced a quarterly dividend of $0.40 per share.
• Analyst sentiment is mixed, with five Buy, eleven Hold and two Sell ratings; the consensus rating is Hold with an average price target of $201.93, well above the current share price.

Honeywell Aerospace (NASDAQ:HONA - Get Free Report)'s share price dropped 11% during trading on Thursday. The stock traded as low as $153.00 and last traded at $157.4720. Approximately 1,122,841 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 3,486,729 shares. The stock had previously closed at $177.03.

Honeywell Aerospace News Roundup

Here are the key news stories impacting Honeywell Aerospace this week:

• Positive Sentiment: Honeywell Aerospace reported third-quarter revenue of $4.6 billion, up 2% year over year, and adjusted EPS of $2.21, beating the $1.90 consensus estimate. Backlog rose 12% to $19.3 billion, supporting longer-term demand. Honeywell Aerospace reports third quarter results
• Positive Sentiment: Management raised full-year pro forma standalone adjusted EPS guidance to $7.85-$8.00 and increased its second-half free-cash-flow outlook. The company also announced its inaugural quarterly dividend of $0.40 per share, or $1.60 annualized. Honeywell Aerospace lifts free cash flow forecast
• Positive Sentiment: A planned $500 million, 300,000-square-foot manufacturing facility in Tempe, Arizona, is intended to expand capacity for commercial aviation and defense programs and create approximately 600 jobs. Honeywell Aerospace Tempe manufacturing facility

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on HONA shares. Evercore set a $210.00 target price on shares of Honeywell Aerospace in a research note on Thursday, August 6th. The Goldman Sachs Group assumed coverage on shares of Honeywell Aerospace in a research note on Wednesday, October 7th. They set a "neutral" rating and a $190.00 price objective for the company. Wells Fargo & Company set a $195.00 target price on shares of Honeywell Aerospace in a research note on Monday, August 10th. Melius Research set a $190.00 price target on shares of Honeywell Aerospace in a research report on Monday, September 14th. Finally, Weiss Ratings began coverage on Honeywell Aerospace in a research report on Friday, September 11th. They issued a "sell (d)" rating on the stock. Five investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $201.93.

Honeywell Aerospace Stock Down 8.9%

The firm has a market capitalization of $51.09 billion and a PE ratio of 86.51. The company has a 50 day moving average of $160.44.

Honeywell Aerospace (NASDAQ:HONA - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $2.21 earnings per share for the quarter, topping the consensus estimate of $1.90 by $0.31. The business had revenue of $4.64 billion during the quarter. Equities research analysts forecast that Honeywell Aerospace will post 7.77 earnings per share for the current year.

Honeywell Aerospace Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, November 13th.

Institutional Investors Weigh In On Honeywell Aerospace

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Honeywell Aerospace in the 2nd quarter worth approximately $5,253,341,000. State Street Corp purchased a new stake in shares of Honeywell Aerospace in the 2nd quarter worth about $2,945,044,000. Wellington Management Group LLP purchased a new position in shares of Honeywell Aerospace during the second quarter valued at about $1,705,882,000. Bank of America Corp DE purchased a new stake in Honeywell Aerospace in the second quarter worth about $1,034,187,000. Finally, Bank of New York Mellon Corp purchased a new stake in Honeywell Aerospace in the second quarter worth $644,412,000.

About Honeywell Aerospace

Honeywell Aerospace develops and supplies aerospace technologies for commercial aviation, business and general aviation, defense, and space customers. Its portfolio includes aircraft engines and auxiliary power units, avionics, flight controls, navigation and communication systems, environmental and thermal-management equipment, wheels and brakes, and other propulsion and mechanical systems.

The company also provides aftermarket support, including maintenance, repair and overhaul services, replacement parts, upgrades, technical assistance, and digital solutions designed to improve aircraft performance and operational efficiency.

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