NEWPORT NEWS, VA—Wyatt D R, Corporate Vice President and Treasurer at Huntington Ingalls (NYSE:HII) Industries, Inc. (NYSE:HII), has sold 400 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a price of $205.24 each, amounting to a total transaction value of $82,096. Following this sale, Wyatt retains ownership of 19,626.508 shares of Huntington Ingalls Industries.
In other recent news, Huntington Ingalls Industries (HII) reported a decrease in third-quarter earnings for 2024, with earnings per share dropping to $2.56 from $3.70 in the same quarter of the previous year. HII's revenue also saw a 2.4% year-on-year decline to $2.7 billion. Despite these financial setbacks, the company announced a significant $9.6 billion contract award for amphibious warships, boosting its backlog to $49.4 billion.
In a recent move, TD Cowen downgraded HII from Buy to Hold, citing persistent shipbuilding execution challenges that are expected to continue impacting the company's margin levels. The firm also significantly reduced the price target for HII to $180 from the previous $290.
In terms of leadership transitions, Kari Wilkinson will take over as president of HII's Newport News Shipbuilding division starting January 1, 2025, succeeding Jennifer Boykin, who is retiring after 37 years with the company. Brian Blanchette, who has been with Ingalls since 1996, has been elected to succeed Wilkinson as executive vice president of HII and president of Ingalls Shipbuilding.
In response to operational challenges, HII revised its full-year guidance for shipbuilding revenue to $8.8 billion and updated its free cash flow expectations to range between zero and $100 million. The company is focusing on workforce training and supply chain improvements to address these performance challenges.
In addition, HII secured a $197 million contract to enhance U.S. Army combat vehicles, part of the DoD Information Analysis Center's multiple-award contract vehicle. This contract is expected to contribute to the DTIC repository and serve the broader science and technology community.
InvestingPro Insights
In light of Wyatt D R's recent stock sale, it's worth examining some key financial metrics and trends for Huntington Ingalls Industries (NYSE:HII). According to InvestingPro data, the company currently has a market capitalization of $8.03 billion and a P/E ratio of 11.54, suggesting a relatively low valuation compared to its earnings.
One notable InvestingPro Tip highlights that HII has raised its dividend for 13 consecutive years, demonstrating a commitment to returning value to shareholders. This is particularly relevant given the recent insider sale, as it may provide some reassurance to investors about the company's financial stability and shareholder-friendly policies.
However, it's important to note that HII's stock has faced some headwinds recently. InvestingPro data shows that the company's 3-month price total return stands at -21.29%, indicating a significant decline in share price over the short term. This context adds perspective to the insider's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Huntington Ingalls Industries, providing a deeper understanding of the company's financial health and market position.
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