Huntington Ingalls Industries (HII) Shares Down 7% Following Weak Earnings

Huntington Ingalls Industries Inc (NYSE:HII) shares were down 7% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $200.57 and last traded at $207.63. Approximately 881,243 shares traded hands during mid-day trading, an increase of 140% from the average daily volume of 366,972 shares. The stock had previously closed at $223.14.

The aerospace company reported $2.85 EPS for the quarter, missing analysts’ consensus estimates of $3.27 by ($0.42). Huntington Ingalls Industries had a net margin of 10.23% and a return on equity of 49.48%. The business had revenue of $2.08 billion during the quarter, compared to analysts’ expectations of $1.95 billion. During the same quarter last year, the business posted $3.48 earnings per share. The company’s quarterly revenue was up 11.0% compared to the same quarter last year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 7th. Shareholders of record on Friday, May 24th will be paid a $0.86 dividend. This represents a $3.44 dividend on an annualized basis and a yield of 1.62%. The ex-dividend date is Thursday, May 23rd. Huntington Ingalls Industries’s dividend payout ratio (DPR) is presently 18.02%.

A number of equities research analysts have commented on HII shares. JPMorgan Chase & Co. started coverage on Huntington Ingalls Industries in a research note on Monday, January 7th. They issued a “neutral” rating and a $230.00 price target for the company. Cowen reiterated a “buy” rating and issued a $260.00 price target on shares of Huntington Ingalls Industries in a research note on Monday, January 14th. Citigroup decreased their price target on Huntington Ingalls Industries from $260.00 to $240.00 and set a “buy” rating for the company in a research note on Monday, January 14th. Zacks Investment Research upgraded Huntington Ingalls Industries from a “hold” rating to a “buy” rating and set a $220.00 price target for the company in a research note on Tuesday, January 15th. Finally, Barclays cut Huntington Ingalls Industries from an “overweight” rating to an “underweight” rating and decreased their price target for the company from $245.00 to $215.00 in a research note on Wednesday, January 23rd. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and nine have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $248.00.

In other news, Director Thomas B. Fargo sold 700 shares of the firm’s stock in a transaction dated Wednesday, February 20th. The stock was sold at an average price of $220.57, for a total value of $154,399.00. Following the completion of the transaction, the director now directly owns 648 shares in the company, valued at $142,929.36. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP Brian J. Cuccias sold 3,543 shares of the firm’s stock in a transaction dated Friday, March 1st. The stock was sold at an average price of $210.39, for a total value of $745,411.77. Following the completion of the transaction, the vice president now owns 55,229 shares of the company’s stock, valued at $11,619,629.31. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 12,451 shares of company stock valued at $2,602,287. Company insiders own 2.65% of the company’s stock.

Large investors have recently made changes to their positions in the company. Athena Capital Advisors LLC acquired a new stake in Huntington Ingalls Industries during the fourth quarter worth about $28,000. CSat Investment Advisory L.P. grew its holdings in Huntington Ingalls Industries by 89.9% during the fourth quarter. CSat Investment Advisory L.P. now owns 150 shares of the aerospace company’s stock worth $29,000 after acquiring an additional 71 shares during the period. Howe & Rusling Inc. grew its holdings in Huntington Ingalls Industries by 433.3% during the first quarter. Howe & Rusling Inc. now owns 160 shares of the aerospace company’s stock worth $33,000 after acquiring an additional 130 shares during the period. Dubuque Bank & Trust Co. grew its holdings in Huntington Ingalls Industries by 56.4% during the first quarter. Dubuque Bank & Trust Co. now owns 208 shares of the aerospace company’s stock worth $43,000 after acquiring an additional 75 shares during the period. Finally, Cypress Capital Management LLC WY acquired a new stake in Huntington Ingalls Industries during the fourth quarter worth about $42,000. Hedge funds and other institutional investors own 85.77% of the company’s stock.

The firm has a market capitalization of $9.27 billion, a P/E ratio of 11.11 and a beta of 1.15. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.95 and a quick ratio of 0.88.

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Huntington Ingalls Industries Company Profile (NYSE:HII)

Huntington Ingalls Industries, Inc engages in the designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S.

See Also: Return on Equity (ROE)

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