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

According to Zacks, “Huntington Ingalls' third-quarter 2016 results missed the Zacks Consensus Estimate on both the top and bottom-line fronts. On a year-over-year basis as well, the company delivered a miserable performance will earnings as well as revenues. However, the recent dividend hike of 20% reflects the company’s strong capital structure and smooth capital deployment strategy.  Being the nation’s largest military shipbuilder, Huntington Ingalls continues to boast stable financials and regular cash returns to shareholders. In addition, its multi-year stability in shipbuilding is likely to lead to robust cash flow. That said, Huntington Ingalls' limited commercial exposure and high dependence on the government may deal a heavy blow to margins amid uncertain U.S. defense spending trends. Moreover, the Universal Pegasus acquisition turned out to be ill-timed, given the struggle in the energy markets”

Several other equities analysts also recently issued reports on the stock. Cowen and Company downgraded shares of Huntington Ingalls Industries from an “outperform” rating to a “market perform” rating and cut their price target for the company from $185.00 to $165.00 in a report on Tuesday, September 20th. Citigroup Inc. lifted their price target on shares of Huntington Ingalls Industries from $180.00 to $191.00 and gave the company a “buy” rating in a report on Tuesday, September 6th. Wells Fargo & Co. downgraded shares of Huntington Ingalls Industries from an “outperform” rating to a “market perform” rating in a report on Friday, August 5th. They noted that the move was a valuation call. Finally, Deutsche Bank AG reissued a “buy” rating and set a $190.00 price target (up from $167.00) on shares of Huntington Ingalls Industries in a report on Monday, July 11th. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and three have issued a buy rating to the stock. Huntington Ingalls Industries has an average rating of “Hold” and an average price target of $159.00.

Analyst Recommendations for Huntington Ingalls Industries (NYSE:HII)

Shares of Huntington Ingalls Industries (NYSE:HII) opened at 169.44 on Tuesday. The firm has a market capitalization of $7.93 billion, a price-to-earnings ratio of 18.78 and a beta of 1.15. Huntington Ingalls Industries has a 1-year low of $118.20 and a 1-year high of $177.10. The company’s 50-day moving average is $155.74 and its 200 day moving average is $160.43.

Huntington Ingalls Industries (NYSE:HII) last released its quarterly earnings data on Thursday, November 3rd. The company reported $2.27 EPS for the quarter, missing analysts’ consensus estimates of $2.40 by $0.13. The business had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.68 billion. Huntington Ingalls Industries had a return on equity of 29.26% and a net margin of 6.04%. Huntington Ingalls Industries’s revenue was down 6.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.98 earnings per share. On average, analysts expect that Huntington Ingalls Industries will post $10.42 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 9th. Stockholders of record on Friday, November 25th will be given a dividend of $0.60 per share. This is a boost from Huntington Ingalls Industries’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Tuesday, November 22nd. This represents a $2.40 annualized dividend and a dividend yield of 1.43%. Huntington Ingalls Industries’s payout ratio is currently 22.22%.

In other news, VP Jerri F. Dickseski sold 625 shares of Huntington Ingalls Industries stock in a transaction that occurred on Monday, October 3rd. The shares were sold at an average price of $153.25, for a total transaction of $95,781.25. Following the completion of the sale, the vice president now owns 34,045 shares in the company, valued at approximately $5,217,396.25. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 2.76% of the company’s stock.

Several large investors have recently modified their holdings of the company. Arizona State Retirement System boosted its stake in shares of Huntington Ingalls Industries by 3.0% in the first quarter. Arizona State Retirement System now owns 24,099 shares of the company’s stock valued at $3,300,000 after buying an additional 700 shares in the last quarter. Babson Capital Management LLC boosted its stake in shares of Huntington Ingalls Industries by 5.0% in the first quarter. Babson Capital Management LLC now owns 20,920 shares of the company’s stock valued at $2,865,000 after buying an additional 1,000 shares in the last quarter. Panagora Asset Management Inc. boosted its stake in shares of Huntington Ingalls Industries by 24.2% in the first quarter. Panagora Asset Management Inc. now owns 199,856 shares of the company’s stock valued at $27,368,000 after buying an additional 38,922 shares in the last quarter. Barclays PLC boosted its stake in shares of Huntington Ingalls Industries by 138.2% in the first quarter. Barclays PLC now owns 9,760 shares of the company’s stock valued at $1,327,000 after buying an additional 5,662 shares in the last quarter. Finally, Metropolitan Life Insurance Co. NY boosted its stake in shares of Huntington Ingalls Industries by 2.4% in the first quarter. Metropolitan Life Insurance Co. NY now owns 44,711 shares of the company’s stock valued at $6,123,000 after buying an additional 1,063 shares in the last quarter. Institutional investors own 88.76% of the company’s stock.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries, Inc (HII) designs, builds, overhauls and repairs ships for the United States Navy and the United States Coast Guard. The Company is the designer, builder and refueler of nuclear powered aircraft carriers, a builder of amphibious assault and expeditionary warfare ships for the United States Navy and the sole builder of National Security Cutters (NSCs) for the United States Coast Guard.

5 Day Chart for NYSE:HII

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