Honeywell International Inc (NASDAQ:HON ) Baird Global Industrials Conference November 12, 2024 8:20 AM ET Company Participants Ken West - President and CEO, Energy and Sustainability Solutions Conference Call Participants Peter Arment - Baird Peter Arment Okay. Good morning, everyone.
'Mad Money' host Jim Cramer takes a look at activist's investment action.
Activist investor Elliott Investment Management has taken a more than $5 billion stake in Honeywell International Inc (NYSE:HON, ETR:ALD) and is pushing for the industrial giant to split up its aerospace and automation businesses. In a letter to the company's board on Tuesday, Elliott said Honeywell would benefit from a simplified structure and a separation could create two sector leaders that could perform better and benefit customers, employees and shareholders.
Honeywell International (HON) shares jumped Tuesday to an all-time high after Elliott Investment Management said it has built a $5 billion-plus position in the industrials conglomerate and is seeking a breakup of the company.
Honeywell International Inc. (NASDAQ: HON) is facing pressure from Elliott Management after the activist investor revealed a more than $5 billion stake in the industrial giant. Elliott is urging Honeywell to split its Aerospace and Automation divisions, a move it believes could unlock significant value, projecting up to 75% upside by 2026.
Shares of Honeywell International Inc. rallied into record territory Tuesday after activist investor Elliott Investment Management L.P. disclosed a large stake and said it was pushing for a breakup of the company.
Activist investor Elliott Management has a $5 billion-plus stake in industrial conglomerate Honeywell and is pushing the company to break itself up into two businesses. Elliott believes that if Honeywell were to separate its Aerospace and Automation businesses, Honeywell shareholders could see 75% upside within two years.
Honeywell reported better-than-expected profits in Q3 2024 but reduced its full-year sales and profit forecast due to cost pressures and weaker performance in Industrial Automation. Aerospace Technologies and Building Automation segments showed strong double-digit sales growth, helping to offset a 5% sales decline in Industrial Automation. Despite the sell-off, Honeywell remains appealing for passive income investors with a reliable 2% dividend yield and a lower valuation, especially with potential for long-term dividend growth.
Honeywell reported its Q3 earnings with strong momentum in Aerospace Technologies, balancing weaker trends from Industrial Automation. The company's efforts to lift margins higher are proving successful, supporting a positive earnings outlook. HON stock could be undervalued assuming top-line growth rebounds into 2025 and beyond.
Wolfe Research's Nigel Coe downgraded Honeywell stock to Hold from Buy, and removed a $233 price target.
Honeywell projected annual sales below Wall Street expectations and missed quarterly revenue estimates on Thursday as the industrial giant struggles with persistent supply-chain disruptions and weakness in its industrial automation business.