Honeywell International Inc. (HON) looking to reclaim success with recent performance

Honeywell International Inc. (NASDAQ: HON) stock fell -0.60% on Friday to $173.25 against a previous-day closing price of $174.30. With 2.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.58 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $174.74 whereas the lowest price it dropped to was $172.02. The 52-week range on HON shows that it touched its highest point at $228.26 and its lowest point at $167.35 during that stretch. It currently has a 1-year price target of $205.08. With its current market cap of 116.39 billion, HON has annualized dividend of $3.92 while the current yield stands at 2.26%. Beta for the stock currently stands at 1.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HON was down-trending over the past week, with a drop of -2.04%, but this was down by -12.30% over a month. Three-month performance dropped to -0.76% while six-month performance fell -9.93%. The stock lost -20.17% in the past year, while it has lost -16.91% so far this year. A look at the trailing 12-month EPS for HON yields 7.33 with Next year EPS estimates of 9.68. For the next quarter, that number is 2.16. This implies an EPS growth rate of 17.80% for this year and 11.46% for next year. EPS is expected to grow by 9.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.00%.

Float and Shares Shorts:

At present, 679.00 million HON shares are outstanding with a float of 672.88 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.56 million, which was 0.82% higher than short shares on Jun 14, 2022. In addition to Mr. Darius E. Adamczyk as the firm’s Chairman & CEO, Mr. Gregory Peter Lewis serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 76.25% of HON’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.13% of HON, in contrast to 36.40% held by mutual funds. Shares owned by individuals account for 0.63%. As the largest shareholder in HON with 8.55% of the stake, The Vanguard Group, Inc. holds 57,603,900 shares worth 57,603,900. A second-largest stockholder of HON, SSgA Funds Management, Inc., holds 32,664,346 shares, controlling over 4.85% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in HON, holding 29,100,596 shares or 4.32% stake. With a 2.99% stake in HON, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 20,154,049 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.26% of HON stock, is the second-largest Mutual Fund holder. It holds 15,192,294 shares valued at 2.88 billion. Invesco QQQ Trust holds 1.46% of the stake in HON, owning 9,802,988 shares worth 1.86 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HON since 28 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HON analysts setting a high price target of $234.00 and a low target of $183.00, the average target price over the next 12 months is $204.92. Based on these targets, HON could surge 35.06% to reach the target high and rise by 5.63% to reach the target low. Reaching the average price target will result in a growth of 18.28% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HON will report FY 2022 earnings on 01/27/2023. Analysts have provided yearly estimates in a range of $8.75 being high and $8.54 being low. For HON, this leads to a yearly average estimate of $8.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Honeywell International Inc. surprised analysts by $0.07 when it reported $2.10 EPS against a consensus estimate of $2.03. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $2.20 and the low estimate is $2.11. The average estimate for the next quarter is thus $2.16.

Dividends & Yield:

In terms of dividends, HON has a current ratio of $3.92, which is $3.92 over the trailing 12-months, while a dividend of $3.36 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and HON currently yields $2.26. In the past year, HON’s dividend yield has been $2.26, but when looking at the stock over the past five years, its yield has been $1.95. Accordingly, HON has a current buyback yield of $3.24. This was $3.24 for the TTM, and it was $2.74 for the past five years.

Summary of Insider Activity:

Insiders traded HON stock several times over the past three months with 8 Buys and 7 Sells. In these transactions, 51,693 shares were bought while 37,613 shares were sold. The number of buy transactions has increased to 55 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 299,317 while 225,619 shares were sold.

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