Huntington Ingalls Industries Inc. (NYSE:HII), operating in the aerospace sector, has made positive headway this year in terms of both revenue and earnings following its recent quarterly report. The company received an average recommendation from nine research firms that are tracking HII as “Hold”, according to Bloomberg reports. While two equities researchers provided a sell rating, four deemed it appropriate to give the stock a hold recommendation while two analysts labelled it worthy of a buy rating.
The target price for the stock averaged out to $245.86, according to brokerages issuing reports on the company over the last 12 months. During Q1 of 2021, Huntington Ingalls Industries posted revenue of $2.67 billion compared to the consensus estimate of $2.60 billion, showing growth of around 3.8% YoY.
Meanwhile, the aerospace company’s earnings per share performed better than expected during Q1 of this year with an EPS result of $3.23 as opposed to analyst predictions of an EPS result closer to $3.00, representing a positive deviation by $0.23.
As for investors’ feelings towards Huntington Ingalls Industries during Q1 2021; many decided they wanted a piece of the pie by either buying or selling its shares including institutional investors with big stakes in HII such as Grey Fox Wealth Advisors LLC as well as smaller ones like Almanack Investment Partners LLC who acquired shares worth about $42k each.
Despite these reportedly impressive numbers and buying by various parties however, there was no change in HII’s market valuation in May, which remained stable at around 170 points until June when we saw moderate fluctuations before eventually settling back near 170 points once more towards the end of June.
While external factors could heavily influence an aerospace company like Huntington Ingalls Industries Inc., its investor outlooks remain relatively steady within industry parameters thanks in part to strong quarterly performance figures even amidst a turbulent market.
Mixed Reviews for Huntington Ingalls Industries (HII)’s Stock Value
Huntington Ingalls Industries (HII) has recently received mixed reviews from research analysts regarding their stock value. While StockNews.com downgraded HII from a “buy” rating to a “hold” rating, TheStreet upgraded the aerospace company’s shares from a “c+” rating to a “b-” rating. Credit Suisse Group also dropped their price objective for HII, setting a “neutral” rating for the company. Finally, Sanford C. Bernstein gave HII’s stocks a “market perform” rating and cut their price objective from $247.00 to $236.00.
Despite these mixed signals, HII boasts impressive financials with 12-month highs at $260.02 and a market cap of $7.90 billion. However, it currently carries debt-to-equity ratio of 0.70.
Institutional investors have recently taken interest in buying and selling HII shares as well. For instance, Mitsubishi UFJ Morgan Stanley Securities Co Ltd increased its holdings by 175% during Q4 while Tanglewood Legacy Advisors LLC purchased new stakes in the aerospace company worth approximately $26,000.
Most notably, HII announced on May 15th that they would be paying out quarterly dividends to investors; investors of record as of May 26th would receive a dividend payout of $1.24 per share on June 9th, marking an annualized yield of 2.50%.
In light of this news regarding dividends and institutional investment growth as well as insider trading activity- particularly VP D.R.Wyatt who sold his shares twice-, potential investors might feel more inclined to consider investing in Huntington Ingalls Industries at this point in time despite the recent news about downgrades and lowered price objectives from some research analysts in order to take advantage of possible gains in the future when further good news arrives surrounding them .
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