Honeywell Aerospace (NASDAQ:HONA) Shares Down 11% Following Analyst Downgrade

Honeywell Aerospace (NASDAQ:HONA)’s share price was down 11% on Thursday after BMO Capital Markets downgraded the stock from an outperform rating to a market perform rating. BMO Capital Markets now has a $181.00 price target on the stock, down from their previous price target of $213.00. Honeywell Aerospace traded as low as $153.00 and last traded at $157.4720. 1,122,841 shares were traded during trading, a decline of 68% from the average session volume of 3,486,729 shares. The stock had previously closed at $177.03.

HONA has been the topic of several other reports. TD Cowen reduced their price objective on Honeywell Aerospace from $180.00 to $170.00 and set a “hold” rating on the stock in a report on Friday, October 9th. Wall Street Zen raised Honeywell Aerospace to a “hold” rating in a research report on Sunday, July 12th. Melius Research set a $190.00 price target on Honeywell Aerospace in a research note on Monday, September 14th. Wells Fargo & Company set a $195.00 price target on Honeywell Aerospace in a research note on Monday, August 10th. Finally, BNP Paribas Exane decreased their price objective on Honeywell Aerospace from $210.00 to $160.00 and set a “neutral” rating for the company in a report on Tuesday, October 6th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $196.80.

Key Honeywell Aerospace News

Here are the key news stories impacting Honeywell Aerospace this week:

• Positive Sentiment: Honeywell Aerospace reported third-quarter revenue of approximately $4.6 billion, a 2% year-over-year increase, and adjusted EPS of $2.21, exceeding the $1.90 consensus estimate. Backlog grew 12% to $19.3 billion, supporting longer-term demand. Honeywell Aerospace Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $7.85-$8.00, above the $7.77 analyst consensus, and expects stronger production growth in 2027. HONA Q3 Earnings Call Highlights
• Positive Sentiment: The company announced its first quarterly dividend of $0.40 per share and plans a roughly $500 million manufacturing expansion in Tempe, Arizona, providing shareholder returns and potential capacity growth. Honeywell Aerospace Dividend and Tempe Expansion
• Neutral Sentiment: Several law firms are publicizing a securities class-action lawsuit involving investors who purchased HONA between June 29 and September 1, with a November 23 lead-plaintiff deadline. These notices largely repeat existing information and do not establish wrongdoing, but they add headline risk. HONA Class Action Notice
• Negative Sentiment: BMO Capital Markets downgraded HONA from “outperform” to “market perform” and cut its price target to $181 from $213. JPMorgan also reduced its target to $210 from $235 and maintained a neutral rating, reinforcing investor caution. BMO Capital Markets Recommendation
• Negative Sentiment: Adjusted EBIT rose only 1%, while mechanical supplier constraints continue to limit deliveries. Tariff refunds, deal timing and higher standalone costs—including interest and separation expenses—also made the quarterly profit quality appear less robust. With HONA trading at a high earnings multiple, investors appear to be demanding faster growth than the company currently forecasts. Why Honeywell Aerospace Stock Fell

Institutional Trading of Honeywell Aerospace

Institutional investors have recently modified their holdings of the company. Ameliora Wealth Management Ltd. acquired a new position in shares of Honeywell Aerospace in the second quarter valued at approximately $25,000. Leo H. Evart Inc. acquired a new stake in shares of Honeywell Aerospace during the second quarter worth $26,000. Outlook Capital Management LLC purchased a new position in Honeywell Aerospace in the 2nd quarter valued at $26,000. Security National Bank of SO Dak purchased a new position in Honeywell Aerospace in the 2nd quarter valued at $27,000. Finally, Cherry Tree Wealth Management LLC acquired a new position in Honeywell Aerospace in the 2nd quarter valued at $28,000.

Honeywell Aerospace Price Performance

The stock has a market capitalization of $48.87 billion and a P/E ratio of 82.43. The stock’s 50 day simple moving average is $159.99.

Honeywell Aerospace (NASDAQ:HONA) last issued its earnings results on Wednesday, October 28th. The company reported $2.21 earnings per share for the quarter, beating the consensus estimate of $1.90 by $0.31. The firm had revenue of $4.64 billion during the quarter. On average, analysts forecast that Honeywell Aerospace will post 7.90 earnings per share for the current fiscal year.

Honeywell Aerospace Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 13th will be given a dividend of $0.40 per share. The ex-dividend date is Friday, November 13th. This represents a $1.60 annualized dividend and a yield of 1.0%.

About Honeywell Aerospace

Honeywell Aerospace develops and supplies aerospace technologies for commercial aviation, business and general aviation, defense, and space customers. Its portfolio includes aircraft engines and auxiliary power units, avionics, flight controls, navigation and communication systems, environmental and thermal-management equipment, wheels and brakes, and other propulsion and mechanical systems.

The company also provides aftermarket support, including maintenance, repair and overhaul services, replacement parts, upgrades, technical assistance, and digital solutions designed to improve aircraft performance and operational efficiency.