Huntington Ingalls Industries (HII) Upgraded to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Huntington Ingalls Industries (NYSE:HII) from a hold rating to a buy rating in a report released on Thursday morning. They currently have $266.00 price objective on the aerospace company’s stock.

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.”

Several other analysts have also issued reports on the stock. Credit Suisse Group reissued a neutral rating and issued a $241.00 price target (up previously from $211.00) on shares of Huntington Ingalls Industries in a research report on Thursday, November 9th. Cowen reissued a hold rating and issued a $225.00 price target on shares of Huntington Ingalls Industries in a research report on Friday, October 6th. Citigroup reissued a neutral rating and issued a $233.00 price target (up previously from $224.00) on shares of Huntington Ingalls Industries in a research report on Monday, October 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 given a hold rating and three have issued a buy rating to the company’s stock. The stock presently 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 Thursday, reaching $247.43. 423,700 shares of the company’s stock traded hands, compared to its average volume of 681,061. The company has a market capitalization of $11,200.00, a price-to-earnings ratio of 18.63, a price-to-earnings-growth ratio of 1.33 and a beta of 1.18. 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.

Huntington Ingalls Industries (NYSE:HII) last posted its quarterly earnings results on Wednesday, November 8th. The aerospace company reported $3.27 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.80 billion. During the same quarter in the previous year, the firm posted $2.27 earnings per share. The company’s quarterly revenue 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 year.

Huntington Ingalls Industries announced that its board has initiated a stock repurchase plan on Tuesday, November 7th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the aerospace company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

In related news, VP D R. Wyatt sold 800 shares of the business’s stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $240.33, for a total transaction of $192,264.00. Following the completion of the transaction, the vice president now owns 19,065 shares of the company’s stock, valued at $4,581,891.45. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Philip M. Bilden acquired 2,200 shares of Huntington Ingalls Industries stock in a transaction that occurred on Friday, November 24th. The shares were purchased at an average cost of $234.11 per share, with a total value of $515,042.00. The disclosure for this purchase can be found here. Insiders own 2.22% of the company’s stock.

A number of large investors have recently modified their holdings of the stock. BlackRock Inc. grew its stake in Huntington Ingalls Industries by 2.7% during the second quarter. BlackRock Inc. now owns 4,572,209 shares of the aerospace company’s stock valued at $851,165,000 after acquiring an additional 120,171 shares in the last quarter. State Street Corp grew its stake in Huntington Ingalls Industries by 0.4% during the second quarter. State Street Corp now owns 2,921,169 shares of the aerospace company’s stock valued at $543,803,000 after acquiring an additional 12,014 shares in the last quarter. FMR LLC grew its stake in Huntington Ingalls Industries by 4.1% during the second quarter. FMR LLC now owns 2,881,190 shares of the aerospace company’s stock valued at $536,363,000 after acquiring an additional 114,098 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Huntington Ingalls Industries by 6.1% during the second quarter. Goldman Sachs Group Inc. now owns 928,427 shares of the aerospace company’s stock valued at $172,836,000 after acquiring an additional 53,288 shares in the last quarter. Finally, Discovery Capital Management LLC CT grew its stake in Huntington Ingalls Industries by 82.4% during the second quarter. Discovery Capital Management LLC CT now owns 576,347 shares of the aerospace company’s stock valued at $107,293,000 after acquiring an additional 260,408 shares in the last quarter. 84.00% of the stock is owned by 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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