L3Harris Technologies (NYSE:LHX) Shares Down 10.8% on Analyst Downgrade

L3Harris Technologies Inc (NYSE:LHX)’s share price fell 10.8% during mid-day trading on Thursday after Susquehanna lowered their price target on the stock from $410.00 to $350.00. Susquehanna currently has a positive rating on the stock. L3Harris Technologies traded as low as $269.41 and last traded at $265.3520. Approximately 299,313 shares were traded during trading, a decline of 79% from the average daily volume of 1,437,087 shares. The stock had previously closed at $297.53.

A number of other research analysts have also recently commented on LHX. UBS Group decreased their price target on L3Harris Technologies from $362.00 to $330.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. Weiss Ratings cut shares of L3Harris Technologies from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Truist Financial upgraded shares of L3Harris Technologies to a “strong-buy” rating in a research note on Friday, May 1st. Wall Street Zen raised shares of L3Harris Technologies from a “hold” rating to a “buy” rating in a report on Saturday, April 11th. Finally, BNP Paribas Exane cut their price target on shares of L3Harris Technologies from $330.00 to $310.00 and set a “neutral” rating for the company in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $368.20.

Insider Activity

In other news, VP Melanie Rakita sold 2,180 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $310.45, for a total value of $676,781.00. Following the completion of the transaction, the vice president owned 4,192 shares of the company’s stock, valued at $1,301,406.40. This represents a 34.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.68% of the stock is owned by corporate insiders.

Key Stories Impacting L3Harris Technologies

Here are the key news stories impacting L3Harris Technologies this week:

• Positive Sentiment: Better-than-expected Q2 performance: L3Harris reported adjusted earnings of $3.13 per share versus the $2.80 consensus, while revenue reached $5.88 billion, exceeding estimates of $5.81 billion and increasing 8.4% year over year. Growth was broad-based, with particularly strong weapons demand. L3Harris Q2 Earnings and Revenues Beat Estimates, 2026 Outlook Raised
• Positive Sentiment: Raised outlook and record demand: Management increased its 2026 guidance to $11.80-$12.00 in earnings per share. The company also reported a record $42 billion backlog, stronger orders, wider margins and improved cash flow, offering greater visibility into future revenue. L3Harris’ Record Backlog Makes Its Stock Sell-Off Look Overdone
• Positive Sentiment: Upside in valuation: Susquehanna maintained a positive rating despite reducing its price target from $410 to $350, still implying substantial upside. Zacks also characterized L3Harris as a strong value stock, which may attract investors seeking defense exposure at a lower valuation. Here’s Why L3Harris Is a Strong Value Stock
• Neutral Sentiment: Analyst views remain mixed: BNP Paribas Exane lowered its target from $330 to $310 and assigned a neutral rating, while still indicating potential appreciation from recent trading levels. Another report cited a $310 target from the firm. L3Harris Given New Price Target at BNP Paribas Exane
• Negative Sentiment: Capital-markets setback and recent weakness: L3Harris paused plans for an IPO of its missile-solutions business, saying the market undervalues the unit. The decision may delay a potential valuation catalyst, while the stock recently reached a new 52-week low after an analyst downgrade. L3Harris Pauses IPO of Missile Solutions Business

Institutional Trading of L3Harris Technologies

Several institutional investors have recently modified their holdings of LHX. Artisan Partners Limited Partnership lifted its stake in shares of L3Harris Technologies by 174.2% in the fourth quarter. Artisan Partners Limited Partnership now owns 1,900,509 shares of the company’s stock worth $557,933,000 after acquiring an additional 1,207,334 shares during the period. Two Sigma Investments LP boosted its holdings in L3Harris Technologies by 560.7% in the third quarter. Two Sigma Investments LP now owns 614,287 shares of the company’s stock valued at $187,609,000 after acquiring an additional 521,312 shares during the last quarter. Boston Partners increased its position in L3Harris Technologies by 27.6% during the 4th quarter. Boston Partners now owns 2,401,871 shares of the company’s stock valued at $709,396,000 after purchasing an additional 519,226 shares during the period. M&T Bank Corp increased its position in L3Harris Technologies by 3,127.8% during the 4th quarter. M&T Bank Corp now owns 408,740 shares of the company’s stock valued at $119,994,000 after purchasing an additional 396,077 shares during the period. Finally, Diamant Asset Management Inc. raised its holdings in L3Harris Technologies by 34,415.0% during the 1st quarter. Diamant Asset Management Inc. now owns 357,230 shares of the company’s stock worth $123,298,000 after purchasing an additional 356,195 shares during the last quarter. Institutional investors own 84.76% of the company’s stock.

L3Harris Technologies Trading Up 2.1%

The stock has a market cap of $51.70 billion, a P/E ratio of 28.03, a price-to-earnings-growth ratio of 1.34 and a beta of 0.51. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.89 and a current ratio of 1.18. The firm’s fifty day simple moving average is $297.54 and its 200-day simple moving average is $327.59.

L3Harris Technologies (NYSE:LHX) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $3.13 EPS for the quarter, beating analysts’ consensus estimates of $2.80 by $0.33. L3Harris Technologies had a net margin of 8.17% and a return on equity of 10.96%. The company had revenue of $5.88 billion for the quarter, compared to analyst estimates of $5.81 billion. During the same period in the prior year, the firm posted $2.78 EPS. The company’s quarterly revenue was up 8.4% on a year-over-year basis. L3Harris Technologies has set its FY 2026 guidance at 11.800-12.000 EPS. Equities research analysts expect that L3Harris Technologies Inc will post 11.87 EPS for the current fiscal year.

L3Harris Technologies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be issued a $1.25 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.00 annualized dividend and a yield of 1.8%. L3Harris Technologies’s payout ratio is presently 50.51%.

About L3Harris Technologies

L3Harris Technologies (NYSE: LHX) is an American aerospace and defense company formed in 2019 through the combination of L3 Technologies and Harris Corporation. Headquartered in Melbourne, Florida, the company designs, manufactures and supports a broad range of technology solutions for government and commercial customers, with a particular emphasis on defense, intelligence and public safety applications.

The company’s offerings span communications systems, avionics, electronic warfare, intelligence, surveillance and reconnaissance (ISR) sensors, space systems and mission integration.