Huntington Ingalls Industries (HII) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Huntington Ingalls Industries (NYSE:HII) from a buy rating to a hold rating in a research report sent to investors 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 analysts also recently weighed in on HII. ValuEngine upgraded Huntington Ingalls Industries from a hold rating to a buy rating in a research note on Sunday, December 31st. Citigroup restated a neutral rating and issued a $233.00 price target (up from $224.00) on shares of Huntington Ingalls Industries in a research note on Monday, October 9th. Cowen restated a hold rating and issued a $225.00 price target on shares of Huntington Ingalls Industries in a research note on Friday, October 6th. Finally, Credit Suisse Group restated a neutral rating and issued a $241.00 price target (up from $211.00) on shares of Huntington Ingalls Industries in a research note on Thursday, November 9th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating to the company. Huntington Ingalls Industries currently has an average rating of Hold and a consensus target price of $220.29.

Shares of Huntington Ingalls Industries (HII) traded up $8.16 during mid-day trading on Tuesday, hitting $247.43. The company’s stock had a trading volume of 423,738 shares, compared to its average volume of 847,172. Huntington Ingalls Industries has a one year low of $183.42 and a one year high of $253.44. The stock has a market cap of $10,829.66, a P/E ratio of 18.69, a P/E/G ratio of 1.28 and a beta of 1.18. The company has a quick ratio of 1.38, a current ratio of 1.52 and a debt-to-equity ratio of 0.75.

Huntington Ingalls Industries (NYSE:HII) last announced its earnings results on Wednesday, November 8th. The aerospace company reported $3.27 earnings per share for the quarter, beating the consensus estimate of $2.78 by $0.49. Huntington Ingalls Industries had a return on equity of 33.37% and a net margin of 8.31%. The company had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same period last year, the business posted $2.27 EPS. The company’s revenue was up 10.7% on a year-over-year basis. research analysts expect that Huntington Ingalls Industries will post 12.09 EPS for the current year.

Huntington Ingalls Industries announced that its board has approved a share buyback program on Tuesday, November 7th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the aerospace company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

In other Huntington Ingalls Industries news, VP D R. Wyatt sold 800 shares of the business’s stock in a transaction on Monday, November 13th. The stock was sold at an average price of $240.33, for a total transaction of $192,264.00. Following the sale, the vice president now directly owns 19,065 shares in the company, valued at $4,581,891.45. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Philip M. Bilden bought 2,200 shares of the firm’s stock in a transaction on Friday, November 24th. The shares were purchased at an average price of $234.11 per share, for a total transaction of $515,042.00. The disclosure for this purchase can be found here. 2.22% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Howe & Rusling Inc. raised its holdings in shares of Huntington Ingalls Industries by 4,844.4% in the third quarter. Howe & Rusling Inc. now owns 445 shares of the aerospace company’s stock worth $101,000 after acquiring an additional 436 shares during the last quarter. Toronto Dominion Bank raised its holdings in shares of Huntington Ingalls Industries by 6.8% in the second quarter. Toronto Dominion Bank now owns 565 shares of the aerospace company’s stock worth $105,000 after acquiring an additional 36 shares during the last quarter. Pacer Advisors Inc. raised its holdings in shares of Huntington Ingalls Industries by 7.0% in the second 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 last quarter. Sigma Planning Corp acquired a new position in shares of Huntington Ingalls Industries in the third quarter worth $214,000. Finally, Fox Run Management L.L.C. acquired a new position in shares of Huntington Ingalls Industries in the third quarter worth $226,000. Institutional investors own 83.95% of the company’s stock.

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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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