Zacks Investment Research lowered shares of Huntington Ingalls Industries (NYSE:HII) from a buy rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “Being the nation’s largest military shipbuilder, Huntington Ingalls continues to boast stable financials and regular cash returns to shareholders. It is the sole designer and manufacturer of nuclear powered aircraft carriers in the United States, with more than 70% of the active U.S. Navy fleet consisting of Huntington Ingalls ships. Its solid capital resources fund operations, which allow the company to consistently generate improved cash flow. However, Huntington Ingalls' limited commercial exposure and high dependence on the government might dent margins amid uncertain U.S. defense spending trends. Moreover the company is overvalued compared to its broader industry, in terms of EV/EBITDA multiple. It also underperformed the broader industry over a year.”
A number of other equities research analysts also recently weighed in on HII. Cowen reaffirmed a hold rating and set a $225.00 price objective on shares of Huntington Ingalls Industries in a research report on Friday, October 6th. Citigroup reaffirmed a neutral rating and set a $233.00 price objective (up previously from $224.00) on shares of Huntington Ingalls Industries in a research report on Monday, October 9th. Credit Suisse Group reaffirmed a neutral rating and set a $241.00 price objective (up previously from $211.00) on shares of Huntington Ingalls Industries in a research report on Thursday, November 9th. Finally, ValuEngine raised shares of Huntington Ingalls Industries from a hold rating to a buy rating in a research report on Sunday, December 31st. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $220.29.
Shares of Huntington Ingalls Industries (HII) traded up $8.16 during trading hours on Tuesday, hitting $247.43. 423,738 shares of the company were exchanged, compared to its average volume of 847,172. The company has a current ratio of 1.52, a quick ratio of 1.38 and a debt-to-equity ratio of 0.75. Huntington Ingalls Industries has a twelve month low of $183.42 and a twelve month high of $253.44. The company has a market cap of $10,829.66, a P/E ratio of 18.69, a PEG ratio of 1.28 and a beta of 1.18.
Huntington Ingalls Industries (NYSE:HII) last announced its quarterly earnings data on Wednesday, November 8th. The aerospace company reported $3.27 earnings per share for the quarter, beating analysts’ consensus estimates of $2.78 by $0.49. Huntington Ingalls Industries had a net margin of 8.31% and a return on equity of 33.37%. The business had revenue of $1.86 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter in the prior year, the firm earned $2.27 EPS. The company’s revenue for the quarter was up 10.7% compared to the same quarter last year. analysts expect that Huntington Ingalls Industries will post 12.09 earnings per share for the current fiscal year.
Huntington Ingalls Industries declared that its board has initiated a share repurchase plan on Tuesday, November 7th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the aerospace company to purchase shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.
In other news, Director Philip M. Bilden bought 2,200 shares of Huntington Ingalls Industries stock in a transaction on Friday, November 24th. The stock was purchased at an average cost of $234.11 per share, with a total value of $515,042.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP D R. Wyatt sold 800 shares of the business’s stock in a transaction dated Monday, November 13th. The shares were sold at an average price of $240.33, for a total transaction of $192,264.00. Following the transaction, the vice president now directly owns 19,065 shares of the company’s stock, valued at $4,581,891.45. The disclosure for this sale can be found here. Insiders own 2.22% of the company’s stock.
A number of institutional investors have recently bought and sold shares of the business. Schwab Charles Investment Management Inc. lifted its stake in shares of Huntington Ingalls Industries by 1.4% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 153,858 shares of the aerospace company’s stock worth $28,643,000 after acquiring an additional 2,062 shares during the period. Pacer Advisors Inc. lifted its stake in shares of Huntington Ingalls Industries by 7.0% in the 2nd quarter. Pacer Advisors Inc. now owns 889 shares of the aerospace company’s stock worth $165,000 after acquiring an additional 58 shares during the period. Eaton Vance Management acquired a new stake in shares of Huntington Ingalls Industries in the 2nd quarter worth approximately $248,000. Alliancebernstein L.P. lifted its stake in shares of Huntington Ingalls Industries by 4.4% in the 2nd quarter. Alliancebernstein L.P. now owns 35,015 shares of the aerospace company’s stock worth $6,518,000 after acquiring an additional 1,470 shares during the period. Finally, Riverhead Capital Management LLC lifted its stake in shares of Huntington Ingalls Industries by 12.5% in the 2nd quarter. Riverhead Capital Management LLC now owns 13,130 shares of the aerospace company’s stock worth $2,444,000 after acquiring an additional 1,460 shares during the period. 83.95% of the stock is owned by hedge funds and other institutional investors.
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Huntington Ingalls Industries Company Profile
Huntington Ingalls Industries, Inc is a military shipbuilding company and a provider of professional services to partners in government and industry. The Company’s business consists of the design, construction, repair and maintenance of nuclear-powered ships and non-nuclear ships for the United States Navy and coastal defense surface ships for the United States Coast Guard, as well as the refueling and overhaul and inactivation of nuclear-powered ships for the United States Navy.
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