Analysts from Zacks Research have revised their earnings per share (EPS) estimate for Heico Corporation (NYSE: HEI) for the second quarter of 2026, increasing it from $1.28 to $1.31. This update, released on November 13, 2023, reflects a positive outlook for the aerospace company, which has been experiencing robust growth in the sector.
Heico, which specializes in aerospace, defense, and electronic-related products, is currently projected to achieve full-year earnings of $4.20 per share. Zacks Research maintains a “Hold” rating on the stock, suggesting a cautious approach for investors.
Several other financial institutions have also weighed in on Heico’s stock performance. On August 26, 2023, Stifel Nicolaus set a price target of $360.00, while the Goldman Sachs Group raised its target from $337.00 to $382.00, reaffirming a “buy” rating. In contrast, BNP Paribas Exane initiated coverage with a “neutral” rating and a target price of $330.00.
In a further boost to investor confidence, Robert W. Baird upgraded its target price from $360.00 to $400.00, rating Heico as “outperform.” Barclays also increased its target from $280.00 to $300.00, assigning an “equal weight” rating. These assessments indicate a generally favorable sentiment among analysts, with ten giving a “Buy” rating and seven issuing a “Hold” rating. According to MarketBeat, the average rating stands at “Moderate Buy,” with a mean price target of $344.75.
Stock Performance and Financial Metrics
On November 13, shares of Heico opened at $310.20. Over the past year, the stock has fluctuated significantly, with a low of $216.68 and a high of $338.92. The company’s market capitalization is currently estimated at $43.18 billion, with a price-to-earnings (P/E) ratio of 67.88 and a price-to-earnings-growth (PEG) ratio of 3.64.
Heico’s financial health is supported by a quick ratio of 1.51, a current ratio of 3.35, and a debt-to-equity ratio of 0.58. The stock’s fifty-day moving average is $317.10, while its 200-day moving average is $310.23.
In the last quarter, which concluded on August 25, 2023, Heico reported earnings of $1.26 per share, exceeding analysts’ expectations of $1.12 by $0.14. The company achieved a net margin of 14.96% and a return on equity of 16.29%. Revenue for the quarter reached $1.15 billion, surpassing the forecast of $1.11 billion, marking a 15.7% increase compared to the same quarter last year.
Insider Activity and Institutional Investments
Recent insider transactions show increased confidence among Heico’s directors. On October 21, 2023, Director Mark H. Hildebrandt purchased 400 shares at an average price of $248.76, totaling $99,504. Following this acquisition, Hildebrandt holds 1,181 shares valued at approximately $293,785.56, representing a 51.22% increase in his position.
Additionally, Director Carol F. Fine bought 672 shares on October 10, 2023, at an average cost of $243.93 per share, amounting to about $163,920.96. Insiders have collectively acquired 4,448 shares valued at $1,086,933 in the last quarter, with insider ownership currently at 9.55%.
Institutional investors have also been active, with several firms adjusting their stakes in Heico. Avalon Capital Management increased its holdings by 0.9%, now owning 3,895 shares valued at $1,278,000 after acquiring an additional 33 shares. Ridgewood Investments LLC boosted its position by 36.5%, while Simon Quick Advisors LLC grew its holdings by 5.8%.
Overall, institutional investors and hedge funds currently own 27.12% of Heico’s stock, indicating strong institutional interest in the company’s future growth prospects.
Heico Corporation continues to demonstrate solid financial performance and investor confidence, making it an attractive option for those interested in the aerospace sector.
