Heico (NYSE:HEI) Stock: Insider Nandakumar Cheruvatath Purchases 795 Shares

Heico Corporation (NYSE:HEI) Director Nanda Kumar Cheruvatath purchased 795 shares of the stock in a transaction dated Thursday, October 8th. The stock was acquired at an average cost of $220.30 per share, for a total transaction of $175,138.50. Following the transaction, the director owned 4,877 shares of the company’s stock, valued at approximately $1,074,403.10. This trade represents a 19.48% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link.

Heico Stock Performance

Shares of HEI stock opened at $298.64 on Thursday. The firm’s 50 day moving average is $325.40 and its 200 day moving average is $320.42. The stock has a market capitalization of $41.74 billion, a P/E ratio of 49.69, a PEG ratio of 2.49 and a beta of 1.09. Heico Corporation has a 12 month low of $256.11 and a 12 month high of $376.86. The company has a current ratio of 2.72, a quick ratio of 1.27 and a debt-to-equity ratio of 0.51.

Heico (NYSE:HEI) last released its quarterly earnings data on Tuesday, August 25th. The aerospace company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.51 by $0.16. Heico had a net margin of 16.38% and a return on equity of 18.00%. The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the business earned $1.26 EPS. Heico’s revenue was up 23.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Heico Corporation will post 6.28 earnings per share for the current year.

Heico News Roundup

Here are the key news stories impacting Heico this week:

• Positive Sentiment: Seven Heico directors reported open-market purchases dated October 8. Six directors each bought 795 shares at a reported average of $220.30, while Julie Neitzel purchased 592 shares at $294.93. The combined purchases totaled approximately $1.23 million and increased each director’s existing stake, potentially signaling confidence after recent share-price weakness. Heico insider buying report
• Positive Sentiment: Co-CEOs and Co-Chairmen Eric A. Mendelson and Victor H. received the Wright Brothers Memorial Award for their contributions to aerospace. The recognition supports Heico’s leadership reputation, although it has no immediate effect on earnings or cash flow. Wright Brothers Memorial Award announcement
• Neutral Sentiment: Heico’s latest reported quarter showed strong operating momentum: revenue increased 23.1% year over year to $1.41 billion, while EPS of $1.67 exceeded the $1.51 consensus estimate. However, those results were released previously and are likely already reflected in the stock.
• Neutral Sentiment: Analyst sentiment remains favorable overall, with a MarketBeat average rating of “Moderate Buy” and an average target of $387. However, TD Cowen recently lowered its target to $330 and maintained a “Hold” rating, underscoring near-term valuation concerns.
• Negative Sentiment: At roughly $297, Heico trades at about 49 times earnings and below its 50-day average of $326.78 and 200-day average of $320.23. The premium valuation leaves the stock vulnerable if aerospace growth slows or investors reduce expectations.

Hedge Funds Weigh In On Heico

A number of large investors have recently modified their holdings of HEI. DSM Capital Partners LLC grew its stake in Heico by 5.4% during the first quarter. DSM Capital Partners LLC now owns 807 shares of the aerospace company’s stock valued at $221,000 after acquiring an additional 41 shares in the last quarter. Fortress Financial Solutions LLC lifted its stake in Heico by 2.8% in the 1st quarter. Fortress Financial Solutions LLC now owns 1,796 shares of the aerospace company’s stock worth $493,000 after purchasing an additional 49 shares in the last quarter. Bayban lifted its stake in Heico by 19.6% in the 1st quarter. Bayban now owns 330 shares of the aerospace company’s stock worth $90,000 after purchasing an additional 54 shares in the last quarter. Athena Wealth Management LLC lifted its stake in Heico by 5.8% in the 3rd quarter. Athena Wealth Management LLC now owns 996 shares of the aerospace company’s stock worth $302,000 after purchasing an additional 55 shares in the last quarter. Finally, Mirador Capital Partners LP lifted its stake in Heico by 1.2% in the 2nd quarter. Mirador Capital Partners LP now owns 5,742 shares of the aerospace company’s stock worth $2,045,000 after purchasing an additional 66 shares in the last quarter. 27.12% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

HEI has been the subject of a number of analyst reports. Wall Street Zen lowered Heico from a “buy” rating to a “hold” rating in a report on Saturday, October 3rd. The Goldman Sachs Group reiterated a “buy” rating and issued a $491.00 price target on shares of Heico in a research report on Monday, August 31st. Stifel Nicolaus set a $410.00 price objective on Heico in a research note on Thursday, August 27th. Guggenheim assumed coverage on Heico in a report on Monday, September 14th. They set a “neutral” rating on the stock. Finally, Citigroup increased their price objective on Heico from $429.00 to $441.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Three investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Heico presently has a consensus rating of “Moderate Buy” and a consensus target price of $387.00.

About Heico

HEICO Corporation is an aerospace, defense, and electronics company that designs, manufactures, and distributes specialized products for commercial aviation, defense, space, medical, telecommunications, and other industrial markets. Founded in 1957, the company is headquartered in Hollywood, Florida, and serves customers worldwide, including airlines, original equipment manufacturers, government agencies, and defense contractors.

HEICO operates through two primary segments. Its Flight Support Group produces FAA-approved replacement parts for jet engines and aircraft components, as well as provides aircraft and engine component repair, overhaul, and maintenance services.