Zacks Investment Research Lowers Harris Corp. (HRS) to Sell
Harris Corp. (NYSE:HRS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Harris Corporation has reported lower-than-expected revenues for four consecutive quarters. We expect the top-line to remain under pressure in the first quarter of fiscal 2017 as well. Additionally, the company's lower-than-expected earnings and revenue guidance for fiscal 2017 is disappointing. Foreign currency risks and economic slowdown in several major economies continue to affect its top line. Weak energy markets have hit the company's critical networks segment. However, considerable number of order wins and a strong tactical radio order pipeline are likely to act as tailwinds. Moreover, the company's decision to approve a dividend hike, earlier this year, is encouraging.”
A number of other research firms have also issued reports on HRS. Citigroup Inc. reduced their target price on shares of Harris Corp. from $112.00 to $95.00 and set a “buy” rating for the company in a research note on Tuesday, September 6th. Jefferies Group reissued a “buy” rating and set a $100.00 target price (up from $95.00) on shares of Harris Corp. in a research note on Wednesday, August 3rd. JPMorgan Chase & Co. set a $93.00 target price on shares of Harris Corp. and gave the company a “buy” rating in a research note on Wednesday, August 3rd. Finally, Drexel Hamilton reissued a “buy” rating on shares of Harris Corp. in a research note on Friday, June 17th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and eight have given a buy rating to the company. Harris Corp. presently has a consensus rating of “Buy” and an average target price of $98.29.
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Shares of Harris Corp. (NYSE:HRS) opened at 92.62 on Tuesday. The stock has a 50 day moving average of $91.40 and a 200 day moving average of $83.94. The firm has a market capitalization of $11.51 billion, a price-to-earnings ratio of 35.87 and a beta of 1.22. Harris Corp. has a 52-week low of $70.97 and a 52-week high of $94.09.
Harris Corp. (NYSE:HRS) last posted its earnings results on Tuesday, August 2nd. The company reported $1.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.44 by $0.01. The firm earned $1.90 billion during the quarter, compared to analyst estimates of $1.94 billion. Harris Corp. had a net margin of 4.34% and a return on equity of 21.77%. Harris Corp.’s revenue was up 24.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.32 EPS. On average, analysts predict that Harris Corp. will post $5.78 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 21st. Investors of record on Friday, September 9th were issued a $0.53 dividend. This is an increase from Harris Corp.’s previous quarterly dividend of $0.50. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.29%. The ex-dividend date was Wednesday, September 7th. Harris Corp.’s payout ratio is presently 82.49%.
In related news, insider William H. Gattle sold 1,366 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $93.75, for a total value of $128,062.50. Following the sale, the insider now directly owns 4,851 shares in the company, valued at approximately $454,781.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Sheldon J. Fox sold 17,700 shares of the business’s stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $88.02, for a total transaction of $1,557,954.00. Following the completion of the sale, the senior vice president now owns 62,060 shares in the company, valued at $5,462,521.20. The disclosure for this sale can be found here. 1.71% of the stock is currently owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in HRS. Aperio Group LLC increased its stake in Harris Corp. by 3.7% in the first quarter. Aperio Group LLC now owns 39,976 shares of the company’s stock worth $3,113,000 after buying an additional 1,412 shares during the last quarter. Pacad Investment Ltd. acquired a new stake in Harris Corp. during the first quarter worth approximately $483,000. Ngam Advisors L.P. increased its stake in Harris Corp. by 253.4% in the first quarter. Ngam Advisors L.P. now owns 73,841 shares of the company’s stock worth $5,749,000 after buying an additional 52,948 shares during the last quarter. Stratos Wealth Partners LTD. increased its stake in Harris Corp. by 13.0% in the first quarter. Stratos Wealth Partners LTD. now owns 4,363 shares of the company’s stock worth $340,000 after buying an additional 502 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in Harris Corp. by 1.8% in the first quarter. JPMorgan Chase & Co. now owns 4,203,481 shares of the company’s stock worth $327,282,000 after buying an additional 73,684 shares during the last quarter. Institutional investors and hedge funds own 88.92% of the company’s stock.
About Harris Corp.
Harris Corporation (Harris) together with its subsidiaries is engaged in providing technology-based solutions to government and commercial customers. As of July 3, 2015, the Company operated through four business segments: RF Communications, Government Communications Systems, Integrated Network Solutions and Exelis.
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