Christopher E. Kubasik, Chair and CEO of L3Harris Technologies Inc. (NYSE:LHX), recently sold 21,351 shares of the company's common stock. The shares were sold at an average price of $248.11, amounting to a total transaction value of approximately $5.3 million. This sale followed the exercise of non-qualified stock options, which allowed Kubasik to acquire the same number of shares at a price of $129.85 per share, totaling about $2.8 million.
After these transactions, Kubasik holds 130,506.36 shares directly. Additionally, he retains indirect ownership of 28,808 shares through a grantor retained annuity trust. The stock sales were executed as part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a trading plan for selling stocks they own.
In other recent news, L3Harris Technologies has made significant strides in its Aerojet Rocketdyne rocket motor unit, substantially increasing its output through key investments. This comes after a period of underinvestment and delivery delays. The company's investments have led to a revenue increase for the unit, which reported $598 million in the third quarter, a 23.6% increase from five years ago.
In the realm of stock analysis, BofA Securities upgraded L3Harris Technologies' stock from a Neutral to a Buy rating, while Jefferies maintained a Buy rating on the company's stock and increased the price target. Both firms acknowledge the company's successful implementation of cost-saving strategies and anticipate continued growth.
Truist Securities also increased its price target for L3Harris, maintaining a "Buy" rating. This revision followed the company's strong third-quarter results, which exhibited record bookings and an 8% year-over-year revenue increase.
Aerojet Rocketdyne, a subsidiary of L3Harris, has seen a significant increase in rocket motor production, doubling its monthly production rate due to high global demand. This surge in production comes after the acquisition of Aerojet by L3Harris in December 2022.
These recent developments reflect L3Harris Technologies' potential for sustained growth and profitability in the coming years. The company's financial trajectory is further supported by the projection of substantial free cash flow growth and an increase in defense margins.
InvestingPro Insights
L3Harris Technologies Inc. (NYSE:LHX) has demonstrated strong financial performance and market positioning, as reflected in recent InvestingPro data. The company's market capitalization stands at $46.86 billion, underlining its significant presence in the Aerospace & Defense industry. L3Harris has shown impressive revenue growth, with a 13.32% increase over the last twelve months, reaching $21.14 billion. This growth trend is further supported by a 7.67% quarterly revenue increase in Q3 2024.
InvestingPro Tips highlight L3Harris's commitment to shareholder value. The company has raised its dividend for 23 consecutive years and has maintained dividend payments for 54 consecutive years. This consistent dividend policy aligns with CEO Christopher E. Kubasik's recent stock transactions, suggesting confidence in the company's financial stability and future prospects.
The stock's performance has been noteworthy, with a 35.98% total return over the past year and a 19.14% return year-to-date. This positive momentum is reflected in the stock trading at 95.43% of its 52-week high, indicating strong investor confidence.
While the P/E ratio of 38.85 suggests a premium valuation, the adjusted P/E ratio for the last twelve months as of Q3 2024 is lower at 27.34. This could indicate that the market is pricing in future growth expectations, which is supported by the InvestingPro Tip that net income is expected to grow this year.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for L3Harris Technologies, providing a deeper understanding of the company's financial health and market position.
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