Zacks Investment Research cut shares of Huntington Ingalls Industries (NYSE:HII) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.

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 United States, with more than 70% of the active U.S. Navy fleet consisting of Huntington Ingalls ships. Its solid capital resources fund operations, which allow the company to consistently generate improved cash flow. However, Huntington Ingalls' limited commercial exposure and high dependence on the government might dent margins amid uncertain U.S. defense spending trends. Moreover the company is overvalued compared to its broader industry, in terms of EV/EBITDA multiple. It also underperformed the broader industry over a year.”

Several other analysts have also commented on HII. Cowen reissued a hold rating and set a $225.00 target price on shares of Huntington Ingalls Industries in a research note on Friday, October 6th. Citigroup reissued a neutral rating and set a $233.00 target price (up from $224.00) on shares of Huntington Ingalls Industries in a research note on Monday, October 9th. Credit Suisse Group reissued a neutral rating and set a $241.00 target price (up from $211.00) on shares of Huntington Ingalls Industries in a research note on Thursday, November 9th. Finally, ValuEngine raised shares of Huntington Ingalls Industries from a hold rating to a buy rating in a research note on Sunday, December 31st. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $220.29.

Huntington Ingalls Industries (NYSE:HII) traded up $8.16 during mid-day trading on Tuesday, reaching $247.43. 423,738 shares of the company traded hands, compared to its average volume of 847,172. Huntington Ingalls Industries has a fifty-two week low of $183.42 and a fifty-two week high of $253.44. The firm has a market capitalization of $10,829.66, a price-to-earnings ratio of 18.69, a PEG ratio of 1.28 and a beta of 1.18. The company has a current ratio of 1.52, a quick ratio of 1.38 and a debt-to-equity ratio of 0.75.

Huntington Ingalls Industries (NYSE:HII) last released its earnings results on Wednesday, November 8th. The aerospace company reported $3.27 EPS for the quarter, beating the consensus estimate of $2.78 by $0.49. Huntington Ingalls Industries had a net margin of 8.31% and a return on equity of 33.37%. The business had revenue of $1.86 billion during the quarter, compared to analyst estimates of $1.80 billion. During the same period in the prior year, the business earned $2.27 earnings per share. The business’s quarterly revenue was up 10.7% on a year-over-year basis. equities analysts forecast that Huntington Ingalls Industries will post 12.09 earnings per share for the current year.

Huntington Ingalls Industries announced that its board has initiated a share buyback plan on Tuesday, November 7th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the aerospace company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

In other news, VP D R. Wyatt sold 800 shares of the business’s stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $240.33, for a total transaction of $192,264.00. Following the sale, the vice president now owns 19,065 shares in the company, valued at $4,581,891.45. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Philip M. Bilden purchased 2,200 shares of the business’s stock in a transaction dated Friday, November 24th. The shares were purchased at an average price of $234.11 per share, for a total transaction of $515,042.00. The disclosure for this purchase can be found here. 2.22% of the stock is owned by insiders.

Several hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. raised its holdings in shares of Huntington Ingalls Industries by 2.7% during the second quarter. BlackRock Inc. now owns 4,572,209 shares of the aerospace company’s stock valued at $851,165,000 after acquiring an additional 120,171 shares during the period. State Street Corp increased its stake in Huntington Ingalls Industries by 0.4% in the 2nd quarter. State Street Corp now owns 2,921,169 shares of the aerospace company’s stock valued at $543,803,000 after buying an additional 12,014 shares during the period. FMR LLC increased its stake in Huntington Ingalls Industries by 4.1% in the 2nd quarter. FMR LLC now owns 2,881,190 shares of the aerospace company’s stock valued at $536,363,000 after buying an additional 114,098 shares during the period. Goldman Sachs Group Inc. increased its stake in Huntington Ingalls Industries by 6.1% in the 2nd quarter. Goldman Sachs Group Inc. now owns 928,427 shares of the aerospace company’s stock valued at $172,836,000 after buying an additional 53,288 shares during the period. Finally, Discovery Capital Management LLC CT increased its stake in Huntington Ingalls Industries by 82.4% in the 2nd quarter. Discovery Capital Management LLC CT now owns 576,347 shares of the aerospace company’s stock valued at $107,293,000 after buying an additional 260,408 shares during the period. Institutional investors and hedge funds own 83.95% of the company’s stock.

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Huntington Ingalls Industries Company Profile

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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