Huntington Ingalls Industries (NYSE:HII) Shares Gap Down – Here’s Why

Huntington Ingalls Industries, Inc. (NYSE:HII) gapped down before the market opened on Thursday . The stock had previously closed at $413.14, but opened at $354.61. Huntington Ingalls Industries shares last traded at $373.1740, with a volume of 488,065 shares.

Huntington Ingalls Industries News Summary

Here are the key news stories impacting Huntington Ingalls Industries this week:

• Positive Sentiment: Q4 beat: HII reported $4.04 EPS vs. $3.72 consensus and revenue of $3.48B (up ~15.7% y/y), driven by broad segment strength — a core reason for bullish investor reaction. GlobeNewswire: Q4 Results
• Positive Sentiment: Program milestone — successful sea trials of the aircraft carrier John F. Kennedy (CVN 79) reduce technical/program risk on a high-value program and support backlog visibility and future revenue recognition. Naval News: Sea Trials
• Positive Sentiment: Medium-term outlook tightened up — HII raised its medium-term shipbuilding growth target to ~6%, signaling management confidence in sustained demand for naval shipbuilding. This supports longer-term revenue and margin expectations. MSN: Growth Target
• Positive Sentiment: Analyst/style support — coverage pieces highlighting HII as a long-term growth stock (Zacks style/coverage) can draw additional investor interest and buy-side flows. Zacks: Growth Thesis
• Neutral Sentiment: FY‑2026 revenue guidance roughly in line with consensus ($12.7B–$13.1B); guidance keeps expectations anchored but doesn’t materially change the story unless management updates margins or cash-flow outlook. GlobeNewswire: Guidance
• Negative Sentiment: Near-term cash-flow warning — management said it expects negative free cash flow in the current quarter, which sparked an earlier intraday pullback and remains a risk for valuation and near-term returns. Reuters: Negative FCF
• Negative Sentiment: Investors flagged cash-flow and working-capital dynamics on the earnings call and in coverage pieces, which could cap multiple expansion until cash conversion improves. Seeking Alpha: Cash Flow Concern

Wall Street Analyst Weigh In

HII has been the topic of a number of research analyst reports. JPMorgan Chase & Co. increased their price target on Huntington Ingalls Industries from $287.00 to $342.00 and gave the stock a “neutral” rating in a research report on Monday, November 3rd. The Goldman Sachs Group raised their target price on Huntington Ingalls Industries from $384.00 to $425.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $362.00 price target on shares of Huntington Ingalls Industries in a report on Friday, November 7th. TD Cowen upped their price target on shares of Huntington Ingalls Industries from $320.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Huntington Ingalls Industries in a research report on Thursday, January 22nd. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $343.63.

Huntington Ingalls Industries Price Performance

The stock has a market capitalization of $15.62 billion, a P/E ratio of 25.90, a PEG ratio of 1.48 and a beta of 0.34. The company has a current ratio of 1.13, a quick ratio of 1.06 and a debt-to-equity ratio of 0.53. The company has a fifty day simple moving average of $368.97 and a two-hundred day simple moving average of $313.67.

Huntington Ingalls Industries (NYSE:HII) last issued its quarterly earnings results on Thursday, February 5th. The aerospace company reported $4.04 EPS for the quarter, topping the consensus estimate of $3.72 by $0.32. The company had revenue of $3.48 billion during the quarter, compared to analysts’ expectations of $3.09 billion. Huntington Ingalls Industries had a net margin of 4.85% and a return on equity of 12.28%. Huntington Ingalls Industries’s revenue was up 15.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.15 EPS. Sell-side analysts expect that Huntington Ingalls Industries, Inc. will post 13.99 EPS for the current fiscal year.

Huntington Ingalls Industries Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be given a dividend of $1.38 per share. The ex-dividend date is Friday, February 27th. This represents a $5.52 annualized dividend and a dividend yield of 1.4%. Huntington Ingalls Industries’s payout ratio is presently 38.12%.

Insider Activity

In other news, VP Chad N. Boudreaux sold 787 shares of the firm’s stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $314.17, for a total value of $247,251.79. Following the transaction, the vice president directly owned 20,441 shares in the company, valued at $6,421,948.97. This trade represents a 3.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Edmond E. Jr. Hughes sold 850 shares of the company’s stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $315.44, for a total value of $268,124.00. Following the completion of the sale, the vice president owned 8,731 shares of the company’s stock, valued at $2,754,106.64. This represents a 8.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 16,637 shares of company stock valued at $5,331,276 in the last 90 days. 0.72% of the stock is owned by company insiders.

Institutional Trading of Huntington Ingalls Industries

A number of hedge funds have recently modified their holdings of HII. NBC Securities Inc. increased its stake in Huntington Ingalls Industries by 87.2% in the fourth quarter. NBC Securities Inc. now owns 88 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 41 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new position in shares of Huntington Ingalls Industries in the 2nd quarter valued at $25,000. Rakuten Securities Inc. increased its position in shares of Huntington Ingalls Industries by 140.0% in the 2nd quarter. Rakuten Securities Inc. now owns 108 shares of the aerospace company’s stock valued at $26,000 after buying an additional 63 shares in the last quarter. Versant Capital Management Inc raised its stake in Huntington Ingalls Industries by 120.0% during the 3rd quarter. Versant Capital Management Inc now owns 110 shares of the aerospace company’s stock worth $32,000 after buying an additional 60 shares during the period. Finally, Community Bank N.A. bought a new position in Huntington Ingalls Industries during the third quarter worth about $35,000. 90.46% of the stock is currently owned by institutional investors and hedge funds.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries (NYSE: HII) is America’s largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company’s products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman’s shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.