Friday’s Consumer Pops and Drops: DLPH, RL, FL, THO, HAR, and MDLZ
Harman International Industries (HAR) has a market cap of $5.0 billion. It fell by 1.9%. It closed at $70.69 per share as of February 5, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -4.5%, -23.7%, and -24.6%, respectively.
Technically, the stock broke the support. It’s trading below all of the moving day averages. Currently, Harman International is trading 9.1% below its 20-day moving average, 20.1% below its 50-day moving average, and 32.9% below its 200-day moving average.
The Guggenheim Raymond James SB-1 Equity ETF (RYJ) invests 0.71% of its holdings in Harman International. RYJ tracks an equal-weighted index of US-listed stocks that analysts expect to achieve a 15% total return. Analysts expect the stocks to outperform the S&P 500 over the next 6–12 months. RYJ’s YTD price movement is -9.1% as of February 4, 2016.
The iShares Morningstar Mid-Cap Growth Index Fund (JKH) invests 0.50% of its holdings in Harman International. JKH tracks a market-cap-weighted index of mid-cap companies selected by Morningstar based on their growth characteristics.
Harman International’s competitors and their market caps are:
- Apple (AAPL) – $521.3 billion
- Sony (SNE) – $24.4 billion
Dennis Hamilton was arrested
Dennis Hamilton is Harman International’s vice president of tax. He was arrested due to charges of insider trading. The charges were filed in New Haven, Connecticut. The information of stronger-than-expected quarterly results before the earnings report gave him a profit of over $130,000. He bought 17,000 shares of Harman before the earnings report.
Performance in fiscal 2Q16
Harman International reported fiscal 2Q16 net sales of $1,772.2 million—a rise of 11.9% compared to net sales of $1,583.5 million in fiscal 2Q15. Sales of the connected car and lifestyle audio segments rose by 2.1% and 20.4%, respectively. The sales of professional solutions fell by 6.7% in fiscal 2Q16. The company’s cost of sales, as a percentage of net sales and gross profit, rose by 1.5% and 10.5%, respectively, in fiscal 2Q16 compared to fiscal 2Q15. Its non-GAAP (generally accepted accounting principles) net income and non-GAAP EPS rose to $134.2 million and $1.84, respectively, in fiscal 2Q16—compared to $126.0 million and $1.79, respectively, in fiscal 2Q15.
Meanwhile, its cash and cash equivalents fell by 32.6%. Its inventories rose by 26.2% in fiscal 2Q16—compared to fiscal 4Q15. Its current ratio rose to 1.43. Its DE (debt-to-equity) ratio fell to 1.36 in fiscal 2Q16—compared to its current ratio and DE ratio of 1.36 and 1.45 in fiscal 4Q15.
The company declared a quarterly cash dividend of $0.35 per share on its common stock. The dividend will be paid on February 23, 2016, to each shareholder as of record at the close of business on February 8, 2016.
Harman International’s price-to-earnings and price-to-book value ratios are 14.6x and 2.2x, respectively, as of February 5, 2016.
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