Honeywell Aerospace (NASDAQ:HONA) Stock Price Down 11% Following Analyst Downgrade

Honeywell Aerospace (NASDAQ:HONA) dropped 11% on Thursday after BMO Capital Markets downgraded the stock from an outperform rating to a market perform rating. BMO Capital Markets now has a $181.00 price target on the stock, down from their previous price target of $213.00. Honeywell Aerospace traded as low as $153.00 and last traded at $157.4720. Approximately 1,122,841 shares were traded during mid-day trading, a decline of 68% from the average session volume of 3,486,729 shares. The stock had previously closed at $177.03.

Other analysts have also recently issued research reports about the company. BNP Paribas Exane reduced their price objective on Honeywell Aerospace from $210.00 to $160.00 and set a “neutral” rating for the company in a research report on Tuesday, October 6th. The Goldman Sachs Group started coverage on Honeywell Aerospace in a research report on Wednesday, October 7th. They issued a “neutral” rating and a $190.00 target price on the stock. TD Cowen cut their price target on Honeywell Aerospace from $180.00 to $170.00 and set a “hold” rating for the company in a research note on Friday, October 9th. Weiss Ratings started coverage on Honeywell Aerospace in a report on Friday, September 11th. They set a “sell (d)” rating for the company. Finally, Susquehanna initiated coverage on shares of Honeywell Aerospace in a research note on Thursday, September 17th. They set a “positive” rating and a $190.00 price target on the stock. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $196.80.

Trending Headlines about Honeywell Aerospace

Here are the key news stories impacting Honeywell Aerospace this week:

• Positive Sentiment: Honeywell Aerospace reported third-quarter revenue of approximately $4.6 billion, a 2% year-over-year increase, and adjusted EPS of $2.21, exceeding the $1.90 consensus estimate. Backlog grew 12% to $19.3 billion, supporting longer-term demand. Honeywell Aerospace Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $7.85-$8.00, above the $7.77 analyst consensus, and expects stronger production growth in 2027. HONA Q3 Earnings Call Highlights
• Positive Sentiment: The company announced its first quarterly dividend of $0.40 per share and plans a roughly $500 million manufacturing expansion in Tempe, Arizona, providing shareholder returns and potential capacity growth. Honeywell Aerospace Dividend and Tempe Expansion
• Neutral Sentiment: Several law firms are publicizing a securities class-action lawsuit involving investors who purchased HONA between June 29 and September 1, with a November 23 lead-plaintiff deadline. These notices largely repeat existing information and do not establish wrongdoing, but they add headline risk. HONA Class Action Notice
• Negative Sentiment: BMO Capital Markets downgraded HONA from “outperform” to “market perform” and cut its price target to $181 from $213. JPMorgan also reduced its target to $210 from $235 and maintained a neutral rating, reinforcing investor caution. BMO Capital Markets Recommendation
• Negative Sentiment: Adjusted EBIT rose only 1%, while mechanical supplier constraints continue to limit deliveries. Tariff refunds, deal timing and higher standalone costs—including interest and separation expenses—also made the quarterly profit quality appear less robust. With HONA trading at a high earnings multiple, investors appear to be demanding faster growth than the company currently forecasts. Why Honeywell Aerospace Stock Fell

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of HONA. BlackRock Inc. acquired a new position in shares of Honeywell Aerospace during the 2nd quarter worth about $5,253,341,000. State Street Corp acquired a new stake in Honeywell Aerospace in the 2nd quarter valued at approximately $2,945,044,000. Wellington Management Group LLP acquired a new stake in Honeywell Aerospace in the 2nd quarter valued at approximately $1,705,882,000. Bank of America Corp DE acquired a new stake in Honeywell Aerospace in the 2nd quarter valued at approximately $1,034,187,000. Finally, Bank of New York Mellon Corp bought a new position in Honeywell Aerospace in the 2nd quarter worth approximately $644,412,000.

Honeywell Aerospace Price Performance

The firm has a market capitalization of $48.87 billion and a P/E ratio of 82.43. The business has a 50-day moving average of $159.99.

Honeywell Aerospace (NASDAQ:HONA) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $2.21 earnings per share for the quarter, beating the consensus estimate of $1.90 by $0.31. The business had revenue of $4.64 billion during the quarter. On average, analysts predict that Honeywell Aerospace will post 7.90 earnings per share for the current year.

Honeywell Aerospace Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 13th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, November 13th.

About Honeywell Aerospace

Honeywell Aerospace develops and supplies aerospace technologies for commercial aviation, business and general aviation, defense, and space customers. Its portfolio includes aircraft engines and auxiliary power units, avionics, flight controls, navigation and communication systems, environmental and thermal-management equipment, wheels and brakes, and other propulsion and mechanical systems.

The company also provides aftermarket support, including maintenance, repair and overhaul services, replacement parts, upgrades, technical assistance, and digital solutions designed to improve aircraft performance and operational efficiency.