Honeywell (HON) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Honeywell (NYSE:HON) from a buy rating to a hold rating in a research note issued to investors on Friday.

According to Zacks, “Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positive attributes amid a challenging macroeconomic environment. With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions. In a year’s time, the stock has outperformed the industry. However, the company is susceptible to material price inflation, which erodes its profitability. Given its international presence, Honeywell also faces unfavorable foreign currency movements, making an impact on its top-line growth. A geopolitical impasse due to various conflicts and disruptions may further affect the company’s international operations in key markets.”

A number of other research firms have also recently commented on HON. ValuEngine cut shares of Honeywell from a buy rating to a hold rating in a research report on Wednesday, May 2nd. Stifel Nicolaus reaffirmed a buy rating and issued a $165.00 price target on shares of Honeywell in a report on Friday, February 16th. Bank of America raised their price target on shares of Honeywell from $117.12 to $168.00 and gave the stock a buy rating in a report on Friday, January 26th. TheStreet raised shares of Honeywell from a c+ rating to an a- rating in a report on Friday, April 20th. Finally, Barclays initiated coverage on shares of Honeywell in a report on Thursday, February 15th. They issued an overweight rating and a $170.00 price target for the company. Four analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. The company currently has an average rating of Buy and an average target price of $167.53.



NYSE:HON traded down $0.42 during midday trading on Friday, reaching $150.66. 1,934,405 shares of the stock traded hands, compared to its average volume of 2,520,505. Honeywell has a 12-month low of $131.42 and a 12-month high of $165.13. The company has a quick ratio of 1.11, a current ratio of 1.36 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $112.85 billion, a price-to-earnings ratio of 21.19, a PEG ratio of 2.03 and a beta of 0.98.

Honeywell (NYSE:HON) last posted its earnings results on Friday, April 20th. The conglomerate reported $1.95 EPS for the quarter, beating the Zacks’ consensus estimate of $1.89 by $0.06. Honeywell had a net margin of 4.26% and a return on equity of 29.25%. The company had revenue of $10.39 billion during the quarter, compared to analysts’ expectations of $10.03 billion. During the same quarter in the prior year, the company posted $1.71 earnings per share. Honeywell’s revenue for the quarter was up 9.5% compared to the same quarter last year. analysts expect that Honeywell will post 8.02 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 8th. Investors of record on Friday, May 18th will be issued a dividend of $0.745 per share. The ex-dividend date of this dividend is Thursday, May 17th. This represents a $2.98 annualized dividend and a dividend yield of 1.98%. Honeywell’s dividend payout ratio (DPR) is presently 41.91%.

In related news, Director Jaime Chico /Fa Pardo sold 2,868 shares of the firm’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $156.36, for a total transaction of $448,440.48. Following the completion of the transaction, the director now owns 41,092 shares of the company’s stock, valued at $6,425,145.12. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 1.33% of the company’s stock.

Several institutional investors have recently modified their holdings of the stock. Webster Bank N. A. grew its position in Honeywell by 3.5% during the fourth quarter. Webster Bank N. A. now owns 9,175 shares of the conglomerate’s stock valued at $1,407,000 after buying an additional 314 shares during the period. IFC Holdings Incorporated FL grew its position in Honeywell by 15.4% during the fourth quarter. IFC Holdings Incorporated FL now owns 2,367 shares of the conglomerate’s stock valued at $365,000 after buying an additional 316 shares during the period. Congress Asset Management Co. MA grew its position in Honeywell by 19.0% during the fourth quarter. Congress Asset Management Co. MA now owns 2,040 shares of the conglomerate’s stock valued at $313,000 after buying an additional 325 shares during the period. SVA Plumb Wealth Management LLC grew its position in Honeywell by 1.0% during the fourth quarter. SVA Plumb Wealth Management LLC now owns 33,844 shares of the conglomerate’s stock valued at $5,190,000 after buying an additional 342 shares during the period. Finally, North Star Investment Management Corp. grew its position in Honeywell by 5.3% during the fourth quarter. North Star Investment Management Corp. now owns 6,894 shares of the conglomerate’s stock valued at $1,057,000 after buying an additional 348 shares during the period. 74.46% of the stock is owned by hedge funds and other institutional investors.

About Honeywell

Honeywell International Inc operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. The Aerospace segment supplies products, software, and services for aircraft and vehicles that it sells to original equipment manufacturers and other customers in various markets, including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, defense and space contractors, and automotive and truck manufacturers.

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