Hexcel (NYSE:HXL) Shares Up 3.4% Following Strong Earnings

Hexcel Co. (NYSE:HXL) shares shot up 3.4% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $66.98 and last traded at $65.75. 351,852 shares were traded during trading, a decline of 59% from the average session volume of 862,886 shares. The stock had previously closed at $63.60.

The aerospace company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.01. The company had revenue of $457.00 million for the quarter, compared to the consensus estimate of $457.07 million. Hexcel had a return on equity of 9.55% and a net margin of 5.78%. The firm’s quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the company earned $0.38 EPS.

Hexcel Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Friday, November 1st will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.96%. The ex-dividend date of this dividend is Friday, November 1st. Hexcel’s dividend payout ratio is presently 51.28%.

Analyst Upgrades and Downgrades

HXL has been the subject of a number of recent research reports. Stifel Nicolaus dropped their target price on Hexcel from $86.00 to $84.00 and set a “buy” rating for the company in a report on Tuesday, July 2nd. Royal Bank of Canada cut Hexcel from an “outperform” rating to a “sector perform” rating and dropped their target price for the stock from $76.00 to $68.00 in a report on Wednesday, August 14th. Morgan Stanley dropped their target price on Hexcel from $63.00 to $61.00 and set an “underweight” rating for the company in a report on Monday, July 22nd. BMO Capital Markets dropped their target price on Hexcel from $71.00 to $70.00 and set a “market perform” rating for the company in a report on Monday, September 30th. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on Hexcel from $65.00 to $62.00 and set a “hold” rating for the company in a report on Thursday, October 3rd. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $71.77.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fidelis Capital Partners LLC purchased a new stake in Hexcel during the 1st quarter valued at about $36,000. Centerpoint Advisors LLC grew its stake in Hexcel by 44.6% during the 1st quarter. Centerpoint Advisors LLC now owns 723 shares of the aerospace company’s stock valued at $53,000 after purchasing an additional 223 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in Hexcel during the 1st quarter valued at about $54,000. Eastern Bank purchased a new stake in Hexcel during the 3rd quarter valued at about $62,000. Finally, GAMMA Investing LLC grew its stake in Hexcel by 34.8% during the 2nd quarter. GAMMA Investing LLC now owns 1,068 shares of the aerospace company’s stock valued at $67,000 after purchasing an additional 276 shares during the last quarter. 95.47% of the stock is currently owned by hedge funds and other institutional investors.

Hexcel Trading Down 2.6 %

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.55 and a current ratio of 2.75. The company has a 50 day simple moving average of $61.64 and a two-hundred day simple moving average of $64.29. The firm has a market cap of $5.21 billion, a PE ratio of 53.59, a P/E/G ratio of 1.38 and a beta of 1.29.

Hexcel Company Profile

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.