HEICO (NYSE:HEI) Shares Gap Down - Here's Why

HEICO Co. (NYSE:HEI - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $259.80, but opened at $250.44. HEICO shares last traded at $242.15, with a volume of 402,018 shares.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Benchmark restated a "buy" rating and set a $245.00 price target on shares of HEICO in a report on Tuesday, August 27th. Royal Bank of Canada raised their price objective on shares of HEICO from $250.00 to $272.00 and gave the company an "outperform" rating in a research note on Wednesday, August 28th. UBS Group started coverage on shares of HEICO in a report on Tuesday, October 15th. They issued a "neutral" rating and a $277.00 target price for the company. Truist Financial increased their price target on shares of HEICO from $264.00 to $282.00 and gave the company a "buy" rating in a report on Friday, October 18th. Finally, Morgan Stanley boosted their price objective on shares of HEICO from $245.00 to $265.00 and gave the stock an "equal weight" rating in a report on Friday, October 18th. Three research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $270.70.

HEICO Stock Down 8.7 %

The company has a quick ratio of 1.47, a current ratio of 3.30 and a debt-to-equity ratio of 0.63. The company has a market cap of $32.88 billion, a PE ratio of 69.57, a PEG ratio of 3.14 and a beta of 1.24. The company's fifty day moving average is $262.66 and its 200-day moving average is $247.81.

HEICO (NYSE:HEI - Get Free Report) last released its quarterly earnings results on Tuesday, December 17th. The aerospace company reported $0.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.97 by $0.02. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.03 billion. HEICO had a return on equity of 14.51% and a net margin of 12.64%. The company's revenue for the quarter was up 8.2% on a year-over-year basis. During the same period last year, the business posted $0.74 EPS. On average, analysts predict that HEICO Co. will post 3.64 EPS for the current year.

HEICO Announces Dividend

The firm also recently declared a semi-annual dividend, which will be paid on Friday, January 17th. Stockholders of record on Friday, January 3rd will be given a dividend of $0.11 per share. This represents a dividend yield of 0.1%. The ex-dividend date is Friday, January 3rd. HEICO's payout ratio is currently 6.45%.

Insider Buying and Selling

In related news, insider Victor H. Mendelson bought 726 shares of the firm's stock in a transaction that occurred on Friday, October 18th. The shares were bought at an average cost of $262.94 per share, with a total value of $190,894.44. Following the acquisition, the insider now owns 1,234,950 shares in the company, valued at $324,717,753. This trade represents a 0.06 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Laurans A. Mendelson purchased 725 shares of the business's stock in a transaction on Friday, October 18th. The shares were bought at an average cost of $262.94 per share, with a total value of $190,631.50. Following the acquisition, the chief executive officer now directly owns 929,984 shares of the company's stock, valued at $244,529,992.96. This trade represents a 0.08 % increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders have acquired 2,175 shares of company stock valued at $571,895. 8.10% of the stock is owned by insiders.

Institutional Investors Weigh In On HEICO

Several hedge funds and other institutional investors have recently added to or reduced their stakes in HEI. Morse Asset Management Inc boosted its position in shares of HEICO by 0.6% in the third quarter. Morse Asset Management Inc now owns 6,207 shares of the aerospace company's stock worth $1,623,000 after purchasing an additional 38 shares during the period. Centaurus Financial Inc. boosted its holdings in HEICO by 8.9% in the 3rd quarter. Centaurus Financial Inc. now owns 731 shares of the aerospace company's stock worth $191,000 after buying an additional 60 shares during the period. Moody Lynn & Lieberson LLC boosted its holdings in HEICO by 1.8% in the 3rd quarter. Moody Lynn & Lieberson LLC now owns 4,186 shares of the aerospace company's stock worth $1,095,000 after buying an additional 73 shares during the period. MGB Wealth Management LLC increased its stake in HEICO by 3.6% in the 3rd quarter. MGB Wealth Management LLC now owns 2,900 shares of the aerospace company's stock worth $758,000 after buying an additional 100 shares in the last quarter. Finally, Coldstream Capital Management Inc. raised its holdings in HEICO by 6.6% during the third quarter. Coldstream Capital Management Inc. now owns 1,719 shares of the aerospace company's stock valued at $451,000 after acquiring an additional 106 shares during the period. 27.12% of the stock is owned by hedge funds and other institutional investors.

About HEICO

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components.