HEICO slides 12.3% as investors digest Q1 results and margin/leverage signals

HEICO Corporation (HEI) is down 12.3% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely catalyst is the company’s fiscal first-quarter earnings release and related commentary. Despite record net income and double-digit sales growth, investors may be reacting to profitability pressure in the Electronic Technologies Group, weaker operating cash flow versus last year, and a higher leverage profile following an acquisition.

Details:

For the quarter ended January 31, 2026, net sales rose 14% year over year to about $1.18 billion and net income attributable to HEICO increased 13% to about $190 million.

Electronic Technologies Group sales increased, but segment operating income declined year over year and operating margin fell to 19.8% from 23.1%, which management tied to a less favorable product mix and lower space-related demand.

Cash provided by operating activities decreased year over year, which the company attributed largely to compensation-related payments (including a distribution under a leadership compensation plan) alongside performance-based compensation tied to prior-year results.

Leverage increased, with management noting a higher total-debt-to-net-income ratio following the completion of an acquisition during the quarter.

Sources:

HEICO press release, U.S. SEC (EDGAR), MarketScreener (S&P Capital IQ)

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$HEI Hedge Fund Activity

We have seen 340 institutional investors add shares of $HEI stock to their portfolio, and 339 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 1,892,690 shares (-75.5%) from their portfolio in Q4 2025, for an estimated $612,455,557
NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO added 1,091,559 shares (+23979.8%) to their portfolio in Q4 2025, for an estimated $353,217,576
UBS GROUP AG added 334,493 shares (+59.7%) to their portfolio in Q4 2025, for an estimated $108,238,589
BALYASNY ASSET MANAGEMENT L.P. added 297,127 shares (+491.4%) to their portfolio in Q4 2025, for an estimated $96,147,325
CAPITAL WORLD INVESTORS removed 250,707 shares (-5.1%) from their portfolio in Q4 2025, for an estimated $81,126,278
VOYA INVESTMENT MANAGEMENT LLC added 219,968 shares (+112.2%) to their portfolio in Q4 2025, for an estimated $71,179,445
DIXON MITCHELL INVESTMENT COUNSEL INC. added 203,504 shares (+inf%) to their portfolio in Q3 2025, for an estimated $65,695,161

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$HEI Government Contracts

We have seen $85,922,829 of award payments to $HEI over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

TBFDS DELTA INSTALL KITS: $35,361,246
H-60 BLACK HAWK CRASHWORTHY EXTERNAL FUEL SYSTEM B-KITS: $9,158,534
TANK ASSEMBLY,FUEL,: $2,299,286
F-16 DATA DISPLAY: $1,993,409
STATOR GENERATOR: $1,412,303

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard.

$HEI Analyst Ratings

Wall Street analysts have issued reports on $HEI in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Citigroup issued a "Buy" rating on 01/13/2026

To track analyst ratings and price targets for $HEI, check out Quiver Quantitative's $HEI forecast page.

$HEI Price Targets

Multiple analysts have issued price targets for $HEI recently. We have seen 8 analysts offer price targets for $HEI in the last 6 months, with a median target of $375.0.

Here are some recent targets:

John Godyn from Citigroup set a target price of $415.0 on 01/13/2026
Michael Ciarmoli from Truist Securities set a target price of $391.0 on 12/23/2025
Gavin Parsons from UBS set a target price of $371.0 on 12/22/2025
Ken Herbert from RBC Capital set a target price of $375.0 on 12/22/2025
Jonathan Siegmann from Stifel set a target price of $370.0 on 12/22/2025
Scott Deuschle from Deutsche Bank set a target price of $375.0 on 12/22/2025
Ronald Epstein from B of A Securities set a target price of $400.0 on 09/05/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.