Huntington Ingalls Industries (NYSE:HII) Reaches New 52-Week Low - Time to Sell?

Key Points

• Huntington Ingalls Industries fell to a new 52-week low of $262.41, with the stock trading below its 50-day and 200-day moving averages. Its market rating remains “Moderate Buy,” with an average analyst price target of $367.12.
• The company reported stronger-than-expected quarterly results, posting $5.27 in adjusted EPS versus the $3.79 consensus estimate and $3.42 billion in revenue, up 10.9% year over year.
• HII pays a quarterly dividend of $1.38 per share, equivalent to a 2.1% annualized yield. CEO Christopher Kastner sold 13,070 shares under a pre-arranged trading plan, while institutional investors collectively own 90.46% of the stock.

Huntington Ingalls Industries, Inc. (NYSE:HII - Get Free Report)'s share price reached a new 52-week low during trading on Friday. The company traded as low as $262.41 and last traded at $263.0580, with a volume of 27853 shares changing hands. The stock had previously closed at $266.00.

Analyst Ratings Changes

Several research analysts have issued reports on HII shares. Wolfe Research raised Huntington Ingalls Industries from a "peer perform" rating to an "outperform" rating and set a $364.00 target price on the stock in a research report on Friday, July 31st. Wells Fargo & Company increased their price objective on shares of Huntington Ingalls Industries from $325.00 to $340.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 4th. TD Cowen dropped their price objective on shares of Huntington Ingalls Industries from $420.00 to $360.00 and set a "buy" rating on the stock in a report on Monday, July 13th. Citigroup boosted their target price on shares of Huntington Ingalls Industries from $349.00 to $379.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Finally, Sanford C. Bernstein reduced their target price on shares of Huntington Ingalls Industries from $341.00 to $327.00 and set a "market perform" rating for the company in a report on Wednesday. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $367.12.

Huntington Ingalls Industries Stock Down 0.6%

The company has a quick ratio of 1.14, a current ratio of 1.23 and a debt-to-equity ratio of 0.51. The company has a fifty day simple moving average of $295.64 and a 200-day simple moving average of $324.58. The firm has a market cap of $10.42 billion, a P/E ratio of 15.77, a price-to-earnings-growth ratio of 1.02 and a beta of 0.23.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The aerospace company reported $5.27 EPS for the quarter, topping the consensus estimate of $3.79 by $1.48. The firm had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.15 billion. Huntington Ingalls Industries had a return on equity of 12.89% and a net margin of 5.01%.The business's revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter last year, the company earned $3.86 earnings per share. On average, equities analysts anticipate that Huntington Ingalls Industries, Inc. will post 18.47 earnings per share for the current year.

Huntington Ingalls Industries Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, August 28th were issued a dividend of $1.38 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $5.52 annualized dividend and a yield of 2.1%. Huntington Ingalls Industries's payout ratio is currently 32.90%.

Insider Buying and Selling at Huntington Ingalls Industries

In other Huntington Ingalls Industries news, CEO Christopher Kastner sold 13,070 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $324.92, for a total value of $4,246,704.40. Following the completion of the transaction, the chief executive officer directly owned 11,224 shares in the company, valued at $3,646,902.08. This represents a 53.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Rothschild Investment LLC boosted its stake in Huntington Ingalls Industries by 478.1% during the fourth quarter. Rothschild Investment LLC now owns 5,295 shares of the aerospace company's stock worth $1,801,000 after buying an additional 4,379 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Huntington Ingalls Industries by 71.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 365,760 shares of the aerospace company's stock worth $124,384,000 after purchasing an additional 152,624 shares during the period. Martingale Asset Management L P grew its holdings in Huntington Ingalls Industries by 29.5% during the 4th quarter. Martingale Asset Management L P now owns 45,782 shares of the aerospace company's stock valued at $15,569,000 after purchasing an additional 10,419 shares during the last quarter. TD Asset Management Inc raised its position in Huntington Ingalls Industries by 67.6% in the 4th quarter. TD Asset Management Inc now owns 51,320 shares of the aerospace company's stock worth $17,452,000 after purchasing an additional 20,691 shares during the period. Finally, Kingsview Wealth Management LLC purchased a new position in shares of Huntington Ingalls Industries during the fourth quarter valued at approximately $4,470,000. Hedge funds and other institutional investors own 90.46% of the company's stock.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc NYSE: HII is a U.S. defense company focused on designing, building, modernizing and maintaining military ships and providing technology services to government customers. It is the largest military shipbuilding company in the United States and one of the few companies capable of designing and constructing nuclear-powered aircraft carriers and submarines.

HII operates through three primary businesses: Newport News Shipbuilding, Ingalls Shipbuilding and Mission Technologies.

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