Hexcel (NYSE:HXL) Sees Unusually-High Trading Volume After Dividend Announcement

Hexcel Co. (NYSE:HXL) saw an uptick in trading volume on Tuesday after the company announced a dividend. 1,134,542 shares traded hands during mid-day trading, an increase of 29% from the previous session’s volume of 876,221 shares.The stock last traded at $63.83 and had previously closed at $62.52.

The newly announced dividend which will be paid on Friday, May 10th. Shareholders of record on Friday, May 3rd will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.94%. Hexcel’s dividend payout ratio is presently 48.39%.

Analyst Ratings Changes

Several brokerages have commented on HXL. Stifel Nicolaus decreased their price target on shares of Hexcel from $90.00 to $86.00 and set a “buy” rating for the company in a research report on Wednesday, April 17th. BMO Capital Markets raised their price target on shares of Hexcel from $69.00 to $73.00 and gave the company a “market perform” rating in a research report on Thursday, February 22nd. Northcoast Research lowered shares of Hexcel from a “buy” rating to a “neutral” rating in a report on Wednesday, April 10th. Royal Bank of Canada restated an “outperform” rating and issued a $80.00 price objective on shares of Hexcel in a report on Wednesday, February 21st. Finally, Wells Fargo & Company raised their price objective on shares of Hexcel from $78.00 to $81.00 and gave the company an “equal weight” rating in a report on Wednesday, February 21st. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, Hexcel has an average rating of “Hold” and a consensus price target of $76.50.

Hexcel Price Performance

The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.68 and a current ratio of 2.74. The company has a market capitalization of $5.30 billion, a PE ratio of 50.43, a P/E/G ratio of 1.28 and a beta of 1.23. The company’s 50-day simple moving average is $71.17 and its 200-day simple moving average is $69.55.

Hexcel (NYSE:HXL) last issued its quarterly earnings data on Monday, April 22nd. The aerospace company reported $0.44 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.44. Hexcel had a net margin of 5.91% and a return on equity of 9.31%. The company had revenue of $472.30 million for the quarter, compared to the consensus estimate of $468.93 million. During the same period last year, the firm posted $0.50 EPS. Hexcel’s revenue for the quarter was up 3.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Hexcel Co. will post 2.22 earnings per share for the current year.

Insider Activity

In other news, insider Thierry Merlot sold 4,500 shares of Hexcel stock in a transaction dated Friday, February 9th. The shares were sold at an average price of $71.63, for a total value of $322,335.00. Following the sale, the insider now owns 50,371 shares of the company’s stock, valued at $3,608,074.73. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, insider Gina Fitzsimons sold 864 shares of the business’s stock in a transaction dated Wednesday, February 14th. The shares were sold at an average price of $72.10, for a total transaction of $62,294.40. Following the sale, the insider now owns 3,375 shares of the company’s stock, valued at $243,337.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Thierry Merlot sold 4,500 shares of the business’s stock in a transaction dated Friday, February 9th. The stock was sold at an average price of $71.63, for a total transaction of $322,335.00. Following the sale, the insider now directly owns 50,371 shares in the company, valued at approximately $3,608,074.73. The disclosure for this sale can be found here. Insiders own 1.85% of the company’s stock.

Institutional Trading of Hexcel

A number of institutional investors have recently added to or reduced their stakes in HXL. SG Americas Securities LLC raised its position in Hexcel by 413.2% during the third quarter. SG Americas Securities LLC now owns 41,147 shares of the aerospace company’s stock worth $2,680,000 after acquiring an additional 33,129 shares during the last quarter. Avior Wealth Management LLC raised its position in Hexcel by 54.6% during the third quarter. Avior Wealth Management LLC now owns 5,826 shares of the aerospace company’s stock worth $380,000 after acquiring an additional 2,057 shares during the last quarter. Integrated Investment Consultants LLC raised its position in Hexcel by 2.0% during the third quarter. Integrated Investment Consultants LLC now owns 9,219 shares of the aerospace company’s stock worth $601,000 after acquiring an additional 177 shares during the last quarter. Spectrum Asset Management Inc. NB CA acquired a new position in Hexcel during the third quarter worth about $664,000. Finally, Oak Thistle LLC acquired a new position in Hexcel during the third quarter worth about $535,000. Hedge funds and other institutional investors own 95.47% of the company’s stock.

About Hexcel

Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products.