Harris Corp. (HRS) Lowered to “Sell” at Zacks Investment Research
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.”
Several other research firms also recently commented on HRS. Citigroup Inc. started coverage on shares of Harris Corp. in a report on Friday, June 10th. They issued a buy rating and a $95.00 price objective for the company. Drexel Hamilton reaffirmed a buy rating on shares of Harris Corp. in a report on Friday, June 17th. Jefferies Group reaffirmed a buy rating and issued a $100.00 price objective (up from $95.00) on shares of Harris Corp. in a report on Wednesday, August 3rd. Finally, JPMorgan Chase & Co. set a $93.00 price objective on shares of Harris Corp. and gave the stock a buy rating in a report on Wednesday, August 3rd. One analyst has rated the stock with a sell rating, one has given a hold rating and eight have given a buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus target price of $98.29.
Shares of Harris Corp. (NYSE:HRS) traded up 0.21% on Tuesday, hitting $91.45. 134,060 shares of the stock traded hands. Harris Corp. has a 52 week low of $70.97 and a 52 week high of $94.09. The firm has a market cap of $11.36 billion, a P/E ratio of 35.42 and a beta of 1.22. The stock has a 50-day moving average price of $91.23 and a 200 day moving average price of $83.72.
Harris Corp. (NYSE:HRS) last released its quarterly earnings data on Tuesday, August 2nd. The company reported $1.45 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.44 by $0.01. The company earned $1.90 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 24.0% on a year-over-year basis. During the same period last year, the firm earned $1.32 EPS. Equities research analysts predict that Harris Corp. will post $5.78 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 21st. Shareholders of record on Friday, September 9th were given a $0.53 dividend. This is a boost from Harris Corp.’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Wednesday, September 7th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.32%. Harris Corp.’s payout ratio is presently 82.49%.
In other Harris Corp. news, insider William H. Gattle sold 1,366 shares of the business’s stock in a transaction dated Tuesday, September 6th. The shares were sold at an average price of $93.75, for a total value of $128,062.50. Following the transaction, the insider now owns 4,851 shares in the company, valued at $454,781.25. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Dana A. Mehnert sold 27,000 shares of the business’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $88.02, for a total transaction of $2,376,540.00. Following the completion of the transaction, the senior vice president now owns 89,492 shares in the company, valued at approximately $7,877,085.84. The disclosure for this sale can be found here. 1.71% of the stock is currently owned by company insiders.
Several institutional investors have recently added to or reduced their stakes in the stock. Blue Chip Partners Inc. boosted its position in Harris Corp. by 0.5% in the second quarter. Blue Chip Partners Inc. now owns 6,081 shares of the company’s stock worth $507,000 after buying an additional 32 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD boosted its position in Harris Corp. by 0.6% in the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 9,357 shares of the company’s stock worth $780,000 after buying an additional 54 shares during the last quarter. Moody Lynn & Lieberson LLC boosted its position in Harris Corp. by 1.3% in the second quarter. Moody Lynn & Lieberson LLC now owns 5,538 shares of the company’s stock worth $462,000 after buying an additional 71 shares during the last quarter. Mn Services Vermogensbeheer B.V. boosted its position in Harris Corp. by 2.4% in the second quarter. Mn Services Vermogensbeheer B.V. now owns 3,149 shares of the company’s stock worth $237,000 after buying an additional 75 shares during the last quarter. Finally, Boston Private Wealth LLC boosted its position in Harris Corp. by 0.3% in the second quarter. Boston Private Wealth LLC now owns 33,124 shares of the company’s stock worth $2,764,000 after buying an additional 91 shares during the last quarter. Hedge funds and other institutional investors own 88.92% of the company’s stock.
Harris Corp. Company Profile
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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