Harris (HRS) – Analysts’ Recent Ratings Changes

A number of firms have modified their ratings and price targets on shares of Harris (NYSE: HRS) recently:

  • 2/7/2019 – Harris had its “buy” rating reaffirmed by analysts at Cowen Inc. They now have a $194.00 price target on the stock.
  • 1/31/2019 – Harris was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $174.00 price target on the stock. According to Zacks, “Harris delivered solid second-quarter fiscal 2019 results with record earnings and high single digit revenue growth driven by strong margin expansion across all the segments. Moreover, both the top line and the bottom line surpassed the respective Zacks Consensus Estimate. Harris' revenue generating capabilities are buoyed by the possibility of greater military spending by the United States owing to tensions with North Korea and Iran. The merger with L3 Technologies will augment its market position offering it economies of scale. The deal will enable Harris to increase scale, strengthen core businesses and fortify position as a premier global defense technology company. Harris offered a bullish guidance for fiscal 2019. The stock has also outperformed the industry in the past year on average. However, increasing cost of operations is likely to contract the profitability of the company in the long term.”
  • 1/30/2019 – Harris had its price target raised by analysts at Argus from $170.00 to $170.00. They now have a “positive” rating on the stock.
  • 1/29/2019 – Harris was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
  • 1/29/2019 – Harris had its “buy” rating reaffirmed by analysts at Cowen Inc. They now have a $194.00 price target on the stock.
  • 1/3/2019 – Harris was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Harris' revenue generating capabilities are buoyed by the possibility of greater military spending by the United States owing to tensions with North Korea and Iran. The merger with L3 Technologies will augment its market position offering it economies of scale. The deal will enable Harris to increase scale, strengthen core businesses and fortify position as a premier global defense technology company. Harris offered a bullish guidance for fiscal 2019. Additionally, multiple contract wins bode well for the company. The stock has also outperformed the industry in the past two years on an average. However, increasing cost of operations is likely to contract the profitability of the company in the long term. Cost of goods sold witnessed a compound annual growth rate of 4.4% from fiscal 2014 to fiscal 2018, eroding the gross profit of the company and affecting its growth potential to some extent.”

HRS stock traded up $2.56 during trading on Friday, reaching $164.80. 938,200 shares of the stock were exchanged, compared to its average volume of 1,152,728. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.27 and a quick ratio of 1.04. Harris Co. has a 1 year low of $123.24 and a 1 year high of $175.50. The company has a market capitalization of $19.09 billion, a PE ratio of 25.35, a price-to-earnings-growth ratio of 2.53 and a beta of 1.23.

Harris (NYSE:HRS) last issued its earnings results on Tuesday, January 29th. The communications equipment provider reported $1.96 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. Harris had a net margin of 13.29% and a return on equity of 26.55%. The company had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the firm earned $1.67 earnings per share. Harris’s quarterly revenue was up 8.5% compared to the same quarter last year. Sell-side analysts forecast that Harris Co. will post 8.01 EPS for the current year.

In other Harris news, SVP Robert L. Duffy sold 40,000 shares of Harris stock in a transaction dated Friday, February 8th. The shares were sold at an average price of $158.66, for a total transaction of $6,346,400.00. Following the transaction, the senior vice president now directly owns 63,918 shares of the company’s stock, valued at $10,141,229.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.51% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of HRS. Los Angeles Capital Management & Equity Research Inc. raised its stake in Harris by 5,847.4% during the third quarter. Los Angeles Capital Management & Equity Research Inc. now owns 318,898 shares of the communications equipment provider’s stock worth $53,961,000 after purchasing an additional 313,536 shares during the period. Ceredex Value Advisors LLC purchased a new stake in shares of Harris in the 4th quarter valued at approximately $42,185,000. Franklin Resources Inc. raised its stake in shares of Harris by 3,472.2% in the 3rd quarter. Franklin Resources Inc. now owns 209,119 shares of the communications equipment provider’s stock valued at $35,384,000 after acquiring an additional 203,265 shares during the period. Renaissance Technologies LLC raised its stake in shares of Harris by 231.4% in the 3rd quarter. Renaissance Technologies LLC now owns 275,059 shares of the communications equipment provider’s stock valued at $46,543,000 after acquiring an additional 192,059 shares during the period. Finally, Two Sigma Advisers LP raised its stake in shares of Harris by 119.2% in the 4th quarter. Two Sigma Advisers LP now owns 337,504 shares of the communications equipment provider’s stock valued at $45,445,000 after acquiring an additional 183,525 shares during the period. 86.10% of the stock is currently owned by institutional investors.

Harris Corporation provides technology-based solutions that solve government and commercial customers' mission-critical challenges in the United States and internationally. The company operates in three segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems. It designs, develops, and manufactures radio communications products and systems, including single channel ground and airborne radio systems, multiband manpack and handheld radios, multi-channel manpack and airborne radios, and single-channel airborne radios, as well as wideband rifleman team, ground, and high frequency manpack radios.

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