H&E Equipment Services Inc. [HEES] Is Currently 2.22 below its 200 Period Moving Avg: What Does This Mean?

H&E Equipment Services Inc. [NASDAQ: HEES] gained 2.22% or 0.98 points to close at $45.20 with a heavy trading volume of 143596 shares. The company report on December 12, 2022 that H&E Equipment Services Signs Definitive Agreement To Sell Komatsu Earthmoving Distributorship.


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H&E Equipment Services Inc. (“H&E” or the “Company”) (NASDAQ: HEES) today announced the signing of a definitive agreement to sell its Komatsu earthmoving distribution business to Houston, Texas based Waukesha-Pearce Industries, LLC (“WPI”). The transaction includes rights to the distribution of earthmoving equipment in the state of Louisiana and counties located in southwestern Arkansas, along with a distribution facility in Kenner, Louisiana, and certain other equipment, parts and supplies. Also, H&E will assign to WPI the outstanding lease on its distribution facility in Bossier City, Louisiana. H&E will retain ownership of its rental assets located at the remaining seven rental branches in Louisiana. The transaction is expected to close by December 31, 2022, subject to customary closing conditions.

Brad Barber, chief executive officer of H&E, stated, “Just over a year ago, we completed the divestitures of our crane business and Arkansas earthmoving distribution business, significantly reducing our exposure to distribution activities. With the sale of our Komatsu earthmoving distributorship in the state of Louisiana, we are effectively completing our transformation to a pure-play rental business. This final step will allow us to sharpen our focus on the higher margin rental business as we continue our evaluation of strategic-growth opportunities in the equipment rental industry.”.

It opened the trading session at $44.14, the shares rose to $45.29 and dropped to $44.14, the range by which the price of stock traded the whole day. The daily chart for HEES points out that the company has recorded 52.24% gains over the past six months. However, it is still -73.05% lower than its most recent low trading price.

If we look at the average trading volume of 197.71K shares, HEES reached to a volume of 143596 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about H&E Equipment Services Inc. [HEES]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HEES shares is $58.83 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HEES stock is a recommendation set at 1.60. 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.

B. Riley Securities have made an estimate for H&E Equipment Services Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 13, 2022. While these analysts kept the previous recommendation, Wells Fargo raised their target price to Overweight. The new note on the price target was released on March 11, 2022, representing the official price target for H&E Equipment Services Inc. stock. Previously, the target price had yet another raise from $45 to $48, while UBS kept a Buy rating on HEES stock.

The Average True Range (ATR) for H&E Equipment Services Inc. is set at 1.57, with the Price to Sales ratio for HEES stock in the period of the last 12 months amounting to 1.37. The Price to Book ratio for the last quarter was 4.61, with the Price to Cash per share for the same quarter was set at 6.21. Price to Free Cash Flow for HEES in the course of the last twelve months was 8.79.

Trading performance analysis for HEES stock

H&E Equipment Services Inc. [HEES] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.43. With this latest performance, HEES shares gained by 6.28% in over the last four-week period, additionally plugging by 52.24% over the last 6 months – not to mention a rise of 0.74% 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 HEES stock in for the last two-week period is set at 60.72, with the RSI for the last a single of trading hit 60.12, and the three-weeks RSI is set at 61.28 for H&E Equipment Services Inc. [HEES]. The present Moving Average for the last 50 days of trading for this stock 39.78, while it was recorded at 44.50 for the last single week of trading, and 35.51 for the last 200 days.

H&E Equipment Services Inc. [HEES]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and H&E Equipment Services Inc. [HEES] shares currently have an operating margin of +11.78 and a Gross Margin at +34.90. H&E Equipment Services Inc.’s Net Margin is presently recorded at +5.70.

Return on Equity for this stock inclined to 22.36, with Return on Assets sitting at 2.98.

H&E Equipment Services Inc. [HEES]: An earnings per share (EPS) analysis

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 HEES. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for H&E Equipment Services Inc. go to 31.40%.

An analysis of insider ownership at H&E Equipment Services Inc. [HEES]

There are presently around $1,263 million, or 78.40% of HEES stock, in the hands of institutional investors. The top three institutional holders of HEES stocks are: VANGUARD GROUP INC with ownership of 3,319,831, which is approximately 2.15% of the company’s market cap and around 7.90% of the total institutional ownership; BLACKROCK INC., holding 2,551,339 shares of the stock with an approximate value of $115.32 million in HEES stocks shares; and CLEARBRIDGE INVESTMENTS, LLC, currently with $114.75 million in HEES stock with ownership of nearly 0.393% of the company’s market capitalization.

Positions in H&E Equipment Services Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 74 institutional holders increased their position in H&E Equipment Services Inc. [NASDAQ:HEES] by around 2,190,319 shares. Additionally, 80 investors decreased positions by around 2,194,979 shares, while 29 investors held positions by with 23,550,556 shares. The mentioned changes placed institutional holdings at 27,935,854 shares, according to the latest SEC report filing. HEES stock had 17 new institutional investments in for a total of 757,687 shares, while 18 institutional investors sold positions of 705,429 shares during the same period.

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