NEWPORT NEWS, Va.—Frank R. Jimenez, a director at Huntington Ingalls (NYSE:HII) Industries, Inc. (NYSE:HII), recently acquired 550 shares of the company's common stock. The transaction took place on November 5, with a purchase price of $188.91 per share, amounting to a total investment of approximately $103,900. Following this acquisition, Jimenez's direct ownership in the company stands at 550 shares.
Huntington Ingalls, a major player in the ship and boat building and repairing industry, is headquartered in Newport News, Virginia. The company remains a significant presence in the manufacturing sector, and this recent transaction reflects ongoing insider activity within the organization.
In other recent news, Huntington Ingalls Industries faced a downgrade from TD Cowen, moving its rating from Buy to Hold due to persistent shipbuilding execution challenges. The firm's new price target for the company is $180, down from the previous $290, indicating concerns over the company's near-term financial performance.
Recent developments also include a decrease in Huntington Ingalls' third-quarter earnings for 2024, with earnings per share dropping to $2.56 from $3.70 in the same quarter of the previous year. Alongside this, the company's revenue saw a 2.4% year-on-year decline to $2.7 billion. Despite these setbacks, Huntington Ingalls announced a significant $9.6 billion contract award for amphibious warships, increasing its backlog to $49.4 billion.
In response to operational challenges, the company revised its full-year guidance for shipbuilding revenue to $8.8 billion and adjusted its free cash flow expectations to range between zero and $100 million. Huntington Ingalls also anticipates submarine contract agreements in late 2024, aiming for mid to long-term shipbuilding margins of 9-10%.
As part of its strategy, the company plans to consolidate Mission Technologies to enhance competitiveness and reduce costs. Amid these changes, Huntington Ingalls remains confident in its future growth, driven by strategic investments in workforce and infrastructure.
InvestingPro Insights
Frank R. Jimenez's recent acquisition of Huntington Ingalls Industries (NYSE:HII) shares comes at an interesting time for the company. According to InvestingPro data, HII's stock is currently trading near its 52-week low, with a significant price decline of 25.04% over the past three months. This context suggests that Jimenez's purchase may be viewed as a vote of confidence in the company's future prospects.
Despite recent market challenges, HII maintains a solid financial foundation. The company boasts a P/E ratio of 10.81, which is relatively low compared to its near-term earnings growth potential. This is highlighted by one of the InvestingPro Tips, which notes that HII is "Trading at a low P/E ratio relative to near-term earnings growth."
Additionally, HII has demonstrated a commitment to shareholder returns. An InvestingPro Tip reveals that the company "Has raised its dividend for 13 consecutive years," with a current dividend yield of 2.83%. This consistent dividend growth may be attractive to long-term investors like Jimenez.
It's worth noting that HII's revenue for the last twelve months stands at $11.71 billion, with a revenue growth of 5.58% over the same period. However, the company faces some challenges, as indicated by another InvestingPro Tip stating that HII "Suffers from weak gross profit margins."
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips on Huntington Ingalls Industries, providing a deeper understanding of the company's financial health and market position.
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