Market Analysts see Honeywell International Inc. [HON] falling to $194. Time to buy?

Honeywell International Inc. [NASDAQ: HON] slipped around -5.75 points on Thursday, while shares priced at $208.97 at the close of the session, down -2.68%. The company report on December 14, 2022 that Honeywell Announces Court Approval of NARCO Trust Buyout and Planned Acquisition of HarbisonWalker by Platinum Equity.


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Honeywell (NASDAQ: HON) has announced court approval of its buyout agreement with the North American Refractories Asbestos Personal Injury Settlement Trust (the “Trust”), which provides for the elimination of Honeywell’s funding obligations to the Trust. Under the agreement and as previously announced, Honeywell will make a one-time, lump sum payment in the amount of $1.325 billion (“Buyout Amount”) to the Trust, subject to certain deductions permitted under the buyout agreement. The buyout agreement was approved on December 8, 2022 by the United States Bankruptcy Court for the Western District of Pennsylvania. Upon the closing of the transactions in the buyout agreement, Honeywell will be released from its funding obligations to the Trust. With court approval of the buyout agreement, Honeywell will reduce the NARCO reserve ($695 million as of September 30, 2022) to its estimate of claims-related amounts to be paid to the Trust through closing and will also recognize a charge associated with the Buyout Amount and a related balance sheet impact in the fourth quarter of 2022.

Further, HarbisonWalker International Holdings, Inc. (“HWI”), the reorganized and renamed entity that emerged from the NARCO bankruptcy, has entered into a definitive agreement today for private equity firm Platinum Equity to acquire HWI. The anticipated net proceeds to Honeywell from this transaction as determined pursuant to the buyout agreement will serve to offset the fourth quarter financial statement impacts of the Buyout Amount by approximately $300 million. Honeywell will also continue to have the right to collect insurance proceeds in connection with the Trust’s asbestos-related insurance policies, which will also serve to offset the cash impacts of the Buyout Amount and will accordingly continue recognizing such receivables.

Honeywell International Inc. stock is now 0.22% up from its year-to-date (YTD) trading value. HON Stock saw the intraday high of $213.72 and lowest of $208.03 per share. The company’s 52-week high price is 221.89, which means current price is +25.41% above from all time high which was touched on 01/13/22.

Compared to the average trading volume of 3.13M shares, HON reached a trading volume of 3195416 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Honeywell International Inc. [HON]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HON shares is $215.24 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HON stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Daiwa Securities have made an estimate for Honeywell International Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 31, 2022. The new note on the price target was released on July 11, 2022, representing the official price target for Honeywell International Inc. stock. Previously, the target price had yet another raise to $230, while Berenberg analysts kept a Hold rating on HON stock. On January 07, 2022, analysts increased their price target for HON shares from 229 to 237.

The Average True Range (ATR) for Honeywell International Inc. is set at 4.17, with the Price to Sales ratio for HON stock in the period of the last 12 months amounting to 4.05. The Price to Book ratio for the last quarter was 7.95, with the Price to Cash per share for the same quarter was set at 11.75. Price to Free Cash Flow for HON in the course of the last twelve months was 68.72 with Quick ratio for the last quarter at 0.90.

How has HON stock performed recently?

Honeywell International Inc. [HON] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.05. With this latest performance, HON shares dropped by -3.00% in over the last four-week period, additionally plugging by 16.17% over the last 6 months – not to mention a drop of -0.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for HON stock in for the last two-week period is set at 45.38, with the RSI for the last a single of trading hit 35.90, and the three-weeks RSI is set at 50.91 for Honeywell International Inc. [HON]. The present Moving Average for the last 50 days of trading for this stock 202.26, while it was recorded at 212.96 for the last single week of trading, and 191.41 for the last 200 days.

Honeywell International Inc. [HON]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Honeywell International Inc. [HON] shares currently have an operating margin of +19.61 and a Gross Margin at +37.14. Honeywell International Inc.’s Net Margin is presently recorded at +16.12.

Return on Equity for this stock inclined to 30.69, with Return on Assets sitting at 8.59.

Honeywell International Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.20.

Earnings analysis for Honeywell International Inc. [HON]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for HON. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Honeywell International Inc. go to 7.25%.

Insider trade positions for Honeywell International Inc. [HON]

There are presently around $105,239 million, or 75.80% of HON stock, in the hands of institutional investors. The top three institutional holders of HON stocks are: VANGUARD GROUP INC with ownership of 60,387,360, which is approximately 0.26% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 40,456,677 shares of the stock with an approximate value of $8.45 billion in HON stocks shares; and STATE STREET CORP, currently with $6.75 billion in HON stock with ownership of nearly -1.041% of the company’s market capitalization.

Positions in Honeywell International Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 997 institutional holders increased their position in Honeywell International Inc. [NASDAQ:HON] by around 14,193,808 shares. Additionally, 948 investors decreased positions by around 15,420,347 shares, while 360 investors held positions by with 473,992,874 shares. The mentioned changes placed institutional holdings at 503,607,029 shares, according to the latest SEC report filing. HON stock had 99 new institutional investments in for a total of 2,016,308 shares, while 100 institutional investors sold positions of 1,328,248 shares during the same period.

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