Huntington Ingalls Industries, Inc. (NYSE:HII) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

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 U.S., with more than 70% of the active U.S. Navy fleet consisting of Huntington Ingalls ships. Its solid capital resources fund its operations, which allow the company to consistently generate improved cash flow from operating activities. It also outperformed the broader industry in past one year. However, Huntington Ingalls' limited commercial exposure and high dependence on the government might be a heavy blow to margins amid uncertain U.S. defense spending trends. Moreover, weakness in Newport News unit weigh heavily on the company's overall results.”

A number of other analysts also recently commented on the stock. ValuEngine upgraded shares of Huntington Ingalls Industries from a “hold” rating to a “buy” rating in a report on Friday, September 1st. BidaskClub upgraded shares of Huntington Ingalls Industries from a “sell” rating to a “hold” rating in a report on Wednesday, July 12th. Cowen and Company reiterated a “hold” rating and issued a $225.00 target price on shares of Huntington Ingalls Industries in a report on Friday, October 6th. Deutsche Bank AG reiterated a “buy” rating and issued a $240.00 target price (up from $230.00) on shares of Huntington Ingalls Industries in a report on Wednesday, August 9th. Finally, Citigroup Inc. reiterated a “neutral” rating and issued a $233.00 target price (up from $224.00) on shares of Huntington Ingalls Industries in a report on Monday, October 9th. Two analysts have rated the stock with a sell rating, six have given a hold rating and three have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $209.00.

Huntington Ingalls Industries (NYSE HII) traded up 0.55% during mid-day trading on Tuesday, hitting $235.86. 56,093 shares of the stock traded hands. Huntington Ingalls Industries has a 12-month low of $146.52 and a 12-month high of $236.94. The stock has a 50 day moving average price of $224.60 and a 200 day moving average price of $205.83. The firm has a market cap of $10.71 billion, a PE ratio of 19.27 and a beta of 1.18.

Huntington Ingalls Industries (NYSE:HII) last released its earnings results on Thursday, August 3rd. The aerospace company reported $3.21 EPS for the quarter, topping analysts’ consensus estimates of $2.62 by $0.59. Huntington Ingalls Industries had a net margin of 7.93% and a return on equity of 31.12%. The business had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.79 billion. During the same period in the previous year, the firm earned $2.32 EPS. The business’s revenue for the quarter was up 9.3% on a year-over-year basis. On average, analysts expect that Huntington Ingalls Industries will post $11.57 earnings per share for the current fiscal year.

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In other news, VP William R. Ermatinger sold 2,985 shares of the business’s stock in a transaction that occurred on Monday, August 14th. The shares were sold at an average price of $215.10, for a total transaction of $642,073.50. Following the sale, the vice president now owns 32,810 shares in the company, valued at $7,057,431. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP D R. Wyatt sold 800 shares of the business’s stock in a transaction that occurred on Friday, August 11th. The shares were sold at an average price of $214.83, for a total transaction of $171,864.00. Following the sale, the vice president now owns 19,865 shares in the company, valued at approximately $4,267,597.95. The disclosure for this sale can be found here. 2.22% of the stock is owned by insiders.

Hedge funds have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Holdings Inc. raised its holdings in shares of Huntington Ingalls Industries by 2.7% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 147,599 shares of the aerospace company’s stock valued at $27,477,000 after acquiring an additional 3,925 shares during the period. State Board of Administration of Florida Retirement System raised its holdings in shares of Huntington Ingalls Industries by 4.5% during the second quarter. State Board of Administration of Florida Retirement System now owns 71,437 shares of the aerospace company’s stock valued at $13,299,000 after acquiring an additional 3,078 shares during the period. Swiss National Bank raised its holdings in shares of Huntington Ingalls Industries by 2.1% during the second quarter. Swiss National Bank now owns 167,700 shares of the aerospace company’s stock valued at $31,219,000 after acquiring an additional 3,400 shares during the period. Wells Fargo & Company MN raised its holdings in shares of Huntington Ingalls Industries by 6.9% during the second quarter. Wells Fargo & Company MN now owns 732,828 shares of the aerospace company’s stock valued at $136,423,000 after acquiring an additional 47,379 shares during the period. Finally, Schwab Charles Investment Management Inc. raised its holdings in shares of Huntington Ingalls Industries by 1.4% during the second quarter. Schwab Charles Investment Management Inc. now owns 153,858 shares of the aerospace company’s stock valued at $28,643,000 after acquiring an additional 2,062 shares during the period. Institutional investors and hedge funds own 85.43% of the company’s stock.

About Huntington Ingalls Industries

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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