Harris Corp. (NYSE:HRS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Harris Corporation has reported lower-than-expected revenues for four consecutive quarters. We expect the top-line to remain under pressure in the first quarter of fiscal 2017 as well. Additionally, the company's lower-than-expected earnings and revenue guidance for fiscal 2017 is disappointing. Foreign currency risks and economic slowdown in several major economies continue to affect its top line. Weak energy markets have hit the company's critical networks segment. However, considerable number of order wins and a strong tactical radio order pipeline are likely to act as tailwinds. Moreover, the company's decision to approve a dividend hike, earlier this year, is encouraging.”
Several other research firms also recently issued reports on HRS. Citigroup Inc. cut their price target on Harris Corp. from $112.00 to $95.00 and set a “buy” rating for the company in a research note on Tuesday, September 6th. JPMorgan Chase & Co. set a $93.00 price target on Harris Corp. and gave the stock a “buy” rating in a research note on Wednesday, August 3rd. Jefferies Group reaffirmed a “buy” rating and set a $100.00 price target (up previously from $95.00) on shares of Harris Corp. in a research note on Wednesday, August 3rd. Finally, Drexel Hamilton reissued a “buy” rating on shares of Harris Corp. in a research note on Friday, June 17th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and eight have assigned a buy rating to the company’s stock. Harris Corp. has an average rating of “Buy” and a consensus price target of $98.29.
Harris Corp. (NYSE:HRS) opened at 91.79 on Tuesday. The firm’s 50-day moving average is $91.28 and its 200 day moving average is $83.78. The stock has a market cap of $11.40 billion, a price-to-earnings ratio of 35.55 and a beta of 1.22. Harris Corp. has a 52 week low of $70.97 and a 52 week high of $94.09.
Harris Corp. (NYSE:HRS) last released its quarterly earnings results on Tuesday, August 2nd. The company reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.01. The business earned $1.90 billion during the quarter, compared to the consensus estimate of $1.94 billion. Harris Corp. had a return on equity of 21.77% and a net margin of 4.34%. The business’s revenue was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.32 EPS. On average, equities research analysts expect that Harris Corp. will post $5.78 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 21st. Stockholders of record on Friday, September 9th were paid a dividend of $0.53 per share. The ex-dividend date of this dividend was Wednesday, September 7th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.31%. This is an increase from Harris Corp.’s previous quarterly dividend of $0.50. Harris Corp.’s dividend payout ratio is currently 82.49%.
In other news, insider William H. Gattle sold 1,366 shares of the company’s stock in a transaction dated Tuesday, September 6th. The shares were sold at an average price of $93.75, for a total transaction of $128,062.50. Following the completion of the transaction, the insider now owns 4,851 shares of the company’s stock, valued at approximately $454,781.25. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Dana A. Mehnert sold 27,000 shares of the company’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $88.02, for a total transaction of $2,376,540.00. Following the transaction, the senior vice president now directly owns 89,492 shares of the company’s stock, valued at approximately $7,877,085.84. The disclosure for this sale can be found here. Insiders own 1.71% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Global X Management Co. LLC increased its position in Harris Corp. by 81.0% in the second quarter. Global X Management Co. LLC now owns 1,419 shares of the company’s stock worth $118,000 after buying an additional 635 shares in the last quarter. Mizuho Asset Management Co. Ltd. increased its position in Harris Corp. by 178.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,661 shares of the company’s stock worth $139,000 after buying an additional 1,064 shares in the last quarter. Huntington National Bank increased its position in Harris Corp. by 24.1% in the second quarter. Huntington National Bank now owns 1,702 shares of the company’s stock worth $142,000 after buying an additional 330 shares in the last quarter. Seven Eight Capital LLC bought a new position in Harris Corp. during the first quarter worth approximately $160,000. Finally, SevenBridge Financial Group LLC bought a new position in Harris Corp. during the second quarter worth approximately $200,000. 88.92% of the stock is owned by institutional investors.
Harris Corp. Company Profile
Harris Corporation (Harris) together with its subsidiaries is engaged in providing technology-based solutions to government and commercial customers. As of July 3, 2015, the Company operated through four business segments: RF Communications, Government Communications Systems, Integrated Network Solutions and Exelis.
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