Honeywell International Inc. (HON) Completes Acquisition of Melrose Energy Metering Business


Back in July it was announced that Honeywell International Inc. (NYSE:HON) had agreed to acquire the energy metering business of Melrose Industries PLC for approximately $5.1 billion. Well, today, after over 5 months the deal has finally closed.

“The Elster acquisition proves that we are staying true to our disciplined M&A approach and integration processes,” Honeywell CEO, Dave Cote said in a statement back in July. “It’s a model that has worked very well for us.”

Melrose plans to return the bulk of the proceeds from this sale to their shareholders, and now will be left only with the electricity generation company, Brush, as their main asset. The deal is just one of many, which Honeywell International Inc. (NYSE:HON) will likely be making over the next few years, as Cote has stated that his target for acquisitions is $10 billion by 2019. The stock decreased 0.31% or $0.32 during the last trading session, hitting $104.33. Approximately shares traded hands. HON shares have declined 0.49% since May 26, 2015 and are currently downtrending. It has outperformed the S&P500 by 1.78%.

From a total of 11 analysts covering Honeywell International Inc. (NYSE:HON) stock, 9 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 82% of the ratings are positive. The highest target price is $126 while the lowest target price is $7. The mean of all analyst targets is $105.90 which is 1.50% above today’s ($104.33) stock price. Honeywell International Inc. was the topic of 23 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on December 17 with a “Outperform” rating. Vetr downgraded shares to a”Strong-Buy” rating and a $111.53 target share price in their report from an August 28. S&P Research maintained HON stock in a recent report from October 20 with a “Hold” rating. Deutsche Bank maintained the rating on August 25. Deutsche Bank has a “Buy” rating and a $113 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on an October 19.

The institutional sentiment decreased to 1.03 in Q2 2015. It’s down 0.18, from 1.21 in 2015Q2. The ratio worsened, as 74 funds sold all their Honeywell International Inc. shares they owned while 433 reduced their positions. 74 funds bought stakes while 449 increased their total positions. Institutions now own 597.00 million shares which is 0.01% less than the previous share count of 597.04 million in 2015Q2.

Evercore Trust Company N.A. holds 7.2% of its total portfolio in Honeywell International Inc., equating to 19.71 million shares. Cincinnati Casualty Co owns 50,000 shares representing 6.05% of their total US portfolio. Moreover, Mar Vista Investment Partners Llc has 5.95% of their total portfolio invested in the company, equating to 1.05 million shares. The Ohio-based Cincinnati Financial Corp has a total of 5.82% of their portfolio invested in the stock. Suncoast Equity Management, a Florida-based fund reported 122,056 shares owned.

Since April 23, 2015, the stock had 0 insider buys, and 7 sales for a total of $16.45 million in net activity. Adams Katherine L. sold 5,000 shares worth $530,000. James Mark R. sold 55,997 shares worth $5.90 million. Matteo Adam sold 419 shares worth $44,079. Mahoney Timothy O. sold 2,077 shares worth $219,310. The insider Fradin Roger sold 70,926 shares worth $7.45M.

Honeywell International Inc. is a diversified technology and manufacturing company. The company has a market cap of $80.65 billion. The Firm is engaged in serving clients across the world with aerospace services and products, turbochargers, control, sensing and security technologies for buildings, homes and industry, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business and transportation. It has 18.25 P/E ratio. The Firm operates in divisions: Aerospace, Automation and Control Solutions (ACS), and Performance Materials and Technologies (PMT).