Zacks Investment Research Downgrades Honeywell International Inc. (HON) to Sell
Honeywell International Inc. (NYSE:HON) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.
According to Zacks, “Honeywell is susceptible to material price inflation, which in turn affects its profitability. Adverse foreign currency translations and volatility in commodity prices related to Brexit are likely to peg back Honeywell’s growth momentum. High R&D costs could also be a drag on its Aerospace segment margin. In addition, Honeywell is highly dependent on its supply chain, and any operating snag in one of the links might have an adverse impact. Nevertheless, Honeywell has managed to beat estimates thrice over the trailing four quarters, for a modest average positive surprise of 0.97%. Honeywell’s diversified business portfolio lends it the potential to earn consistent above-average returns in the upcoming quarters and mitigates operating risks. Honeywell is also divesting its $1.3 billion resins and chemicals business to focus on high-margin businesses and realigning its ACS business segment into two new segments.”
Several other equities analysts have also recently issued reports on HON. Credit Suisse Group AG reiterated a “hold” rating on shares of Honeywell International in a report on Saturday, July 9th. Barclays PLC raised their price target on Honeywell International from $127.00 to $131.00 and gave the company an “overweight” rating in a report on Monday, July 25th. Stifel Nicolaus decreased their price target on Honeywell International from $129.00 to $125.00 and set a “buy” rating on the stock in a report on Monday, July 25th. Citigroup Inc. reiterated a “buy” rating and issued a $132.00 price target on shares of Honeywell International in a report on Tuesday, July 26th. Finally, Oppenheimer Holdings Inc. reiterated an “outperform” rating and issued a $128.00 price target on shares of Honeywell International in a report on Monday, July 25th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and sixteen have assigned a buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $123.00.
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Shares of Honeywell International (NYSE:HON) opened at 109.00 on Monday. The firm’s 50-day moving average price is $114.03 and its 200 day moving average price is $114.93. Honeywell International has a 12-month low of $93.71 and a 12-month high of $120.02. The firm has a market cap of $82.94 billion, a P/E ratio of 17.24 and a beta of 1.05.
Honeywell International (NYSE:HON) last announced its earnings results on Friday, July 22nd. The company reported $1.66 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.64 by $0.02. Honeywell International had a return on equity of 26.84% and a net margin of 12.60%. The company earned $9.78 billion during the quarter, compared to analyst estimates of $10.13 billion. During the same period last year, the company posted $1.51 earnings per share. The firm’s quarterly revenue was up 2.2% compared to the same quarter last year. On average, equities analysts expect that Honeywell International will post $6.68 earnings per share for the current fiscal year.
In related news, SVP Katherine L. Adams sold 108,712 shares of the business’s stock in a transaction that occurred on Monday, August 15th. The stock was sold at an average price of $116.13, for a total transaction of $12,624,724.56. Following the transaction, the senior vice president now directly owns 224,530 shares of the company’s stock, valued at approximately $26,074,668.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Jennifer H. Mak sold 277 shares of the business’s stock in a transaction that occurred on Friday, July 29th. The stock was sold at an average price of $115.54, for a total value of $32,004.58. Following the transaction, the vice president now directly owns 420 shares in the company, valued at $48,526.80. The disclosure for this sale can be found here. Company insiders own 1.83% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Capstone Asset Management Co. raised its position in Honeywell International by 5.8% in the second quarter. Capstone Asset Management Co. now owns 129,863 shares of the company’s stock worth $15,106,000 after buying an additional 7,168 shares during the last quarter. Ferguson Wellman Capital Management Inc. raised its position in Honeywell International by 7.0% in the second quarter. Ferguson Wellman Capital Management Inc. now owns 145,296 shares of the company’s stock worth $16,901,000 after buying an additional 9,517 shares during the last quarter. National Pension Service raised its position in Honeywell International by 4.2% in the first quarter. National Pension Service now owns 383,695 shares of the company’s stock worth $42,993,000 after buying an additional 15,529 shares during the last quarter. LPL Financial LLC raised its position in Honeywell International by 52.7% in the first quarter. LPL Financial LLC now owns 416,083 shares of the company’s stock worth $46,510,000 after buying an additional 143,685 shares during the last quarter. Finally, Panagora Asset Management Inc. raised its position in Honeywell International by 31.6% in the first quarter. Panagora Asset Management Inc. now owns 317,482 shares of the company’s stock worth $35,574,000 after buying an additional 76,249 shares during the last quarter. 76.49% of the stock is currently owned by institutional investors and hedge funds.
Honeywell International Company Profile
Honeywell International Inc (Honeywell) is a technology and manufacturing company. The Company operates in three segments: Aerospace, Automation and Control Solutions (ACS), and Performance Materials and Technologies (PMT). Its Aerospace segment supplies aircraft engines, integrated avionics, systems and service solutions, and related products and services for aircraft manufacturers, airlines, aircraft operators, military services, and defense and space contractors.
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