Yesterday’s Consumer Pops and Drops: HAR, CALM, AVP, and MJN
Harman International Industries (HAR) has a market cap of $6.1 billion. HAR fell by 0.68% to close at $85.08 per share on March 28, 2016. The price movements on weekly, monthly, and YTD bases were -4.2%, 12.3%, and -9.2%, respectively.
Currently, HAR is trading 3.5% above its 20-day moving average, 10.0% above its 50-day moving average, and 12.4% below its 200-day moving average.
The Guggenheim Raymond James SB-1 Equity ETF (RYJ) invests 0.71% of its holdings in HAR. The ETF tracks an equal-weighted index of US-listed stocks that analysts expect to achieve 15% total returns and outperform the S&P 500 over the next six to 12 months. The YTD price movement of RYJ was -2.2% as of March 24, 2016.
The iShares Morningstar Mid-Cap Growth Index Fund (JKH) invests 0.50% of its holdings in HAR. The ETF tracks a market-cap-weighted index of mid-cap companies selected by Morningstar based on their growth characteristics.
The competitors of Harman International Industries (HAR) and their market caps are:
- Apple (AAPL): $583.2 billion
- Sony (SNE): $32.4 billion
Charges of insider trading against Dennis Hamilton
Dennis Hamilton admitted to insider trading before the release of the company’s better-than-expected quarterly earnings report.
On February 5, 2016, Dennis Hamilton, vice president of tax at HAR, was arrested on charges of insider trading, which were filed in New Haven, Connecticut. Hamilton bought 17,000 shares of Harman before the earnings report, which earned him a profit of over $130,000. He is free on bond and scheduled to be sentenced on June 10, 2016.
Performance of Harman International Industries in recent 2Q16
Harman International Industries 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. The sales of connected car and lifestyle audio 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 earnings per share 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%, and its inventories rose by 26.2% in fiscal 2Q16, compared to fiscal 4Q15. Its current ratio rose to 1.43 and its DE (debt-to-equity) ratio fell to 1.36 in fiscal 2Q16, compared to a current ratio and a 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 of record at the close of business on February 8, 2016.
Harman International’s price-to-earnings and price-to-book value ratios are 17.9x and 2.5x, respectively, as of March 28, 2016. In the next part, we’ll look at Cal-Maine Foods.
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