What Factors Have Led to Hexcel Corp (HXL) Stock Trading -13.93% Below Its 52-Week High?

RBC Capital Mkts has recently raised Hexcel Corp (HXL) stock to Outperform rating, as announced on December 19, 2024, according to Finviz. Earlier, on October 10, 2024, Vertical Research had reduced the stock from a Buy to Hold, setting a price target of $65. RBC Capital Mkts also reduced Sector Perform rating with a price target of $68. Additionally, Wells Fargo raised Overweight rating on May 8, 2024, with a target price of $95. Northcoast analysts, in their report published on April 10, 2024, also reduced Neutral rating for Hexcel Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

Hexcel Corp (HXL) Stock Trading Recap

On Friday, Hexcel Corp (HXL) stock saw a decline, ending the day at $66.35 which represents a decrease of $-0.47 or -0.70% from the prior close of $66.82. The stock opened at $67.11 and touched a low of $66.09 during the day, reaching a high of $67.48. The volume of shares traded was 3.24 million exceeding the average volume of 0.85 million.


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HXL Stock Performance and Moving Averages

In recent trading, Hexcel Corp (HXL) stock price has shown some volatility, fluctuating 3.08% over the last five trades and 2.82% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 5.91%, and it has gained 7.15% in the previous three months. Currently, HXL is trading at 3.72%, 5.60%, and 3.88% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, HXL, a Industrials sector stock, is trading -13.93% below its 52-week high but remains 15.39% above its 52-week low. The Average True Range (ATR) (14 days) of 1.52 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Hexcel Corp’s Profitability and Valuation Ratios

Hexcel Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of 11.89% and a profit margin of 5.73%, with a gross margin of 5.91%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Hexcel Corp’s market capitalization stands at $5.37 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 50.82, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 29.27. Additionally, the Price-to-Sales Ratio is 2.85, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.38, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.75% of Hexcel Corp (HXL)’s shares, while financial institutions hold 96.19%.

Notable insider trades include Merlot Thierry, See Remarks at Hexcel Corp (HXL), who sold 9611 shares on Aug 30 ’24, at $63.19 each, totaling $0.61 million. On Aug 28 ’24, Lehman Gail E, See Remarks, sold 4800 shares for $63.28 each, amounting to $0.30 million. Additionally, on Feb 09 ’24, Merlot Thierry sold 4500 shares at $71.63 each, generating $0.32 million.

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