Institutional Moves in Key Aerospace Stocks

Recent regulatory filings show notable institutional activity in three large U.S. aerospace and industrial names: Leidos Holdings, L3Harris Technologies and Honeywell International (HON). The changes come alongside fresh earnings results, dividend payments and updated analyst views across the group.

In the fourth quarter, Running Oak Capital LLC reduced its Leidos Holdings position by 11.6%, selling 11,586 shares and ending the period with 88,608 shares. The stake, valued at about $15.99 million, represented roughly 2.0% of Running Oak Capital’s portfolio and about 0.07% of Leidos’ shares outstanding.

Sumitomo Mitsui Trust Group Inc. trimmed its holdings in L3Harris Technologies by 1.9% in the same quarter. After selling 10,815 shares, it reported ownership of 567,514 shares, or about 0.30% of the company, worth roughly $166.61 million.

Live Oak Private Wealth LLC took the opposite approach with Honeywell International, increasing its stake by 46.8% in the fourth quarter. The firm bought 14,318 additional shares, bringing its total to 44,899 shares valued at around $8.76 million.

Beyond these headline moves, other asset managers have been active. For Leidos, several smaller firms initiated or expanded positions in the third and fourth quarters, including JFS Wealth Advisors, Mather Group, Cape Investment Advisory, Wexford Capital and First Horizon Corp.

L3Harris saw increased positions from large investors such as Bank of America (BAC), Capital Research Global Investors, AGF Management, Dimensional Fund Advisors and Victory Capital Management, which significantly boosted their share counts in recent quarters.

Additional Honeywell shareholders, including Deprince Race & Zollo, Burney, Legacy Financial Strategies and U.S. Capital Wealth Advisors, also increased or initiated positions in the fourth quarter. Institutional investors and hedge funds now hold 76.12% of Leidos, 84.76% of L3Harris, and 75.91% of Honeywell.

Leidos reported quarterly earnings on Tuesday, February 17, posting earnings per share of $2.76, ahead of the $2.57 consensus. Revenue came in at $4.88 billion versus expectations of $4.31 billion, though revenue declined 3.6% year over year. Net margin was 8.43% and return on equity 32.95%. The company provided FY 2026 EPS guidance of $12.05 to $12.45, and analysts expect 10.62 EPS for the current year.

L3Harris announced quarterly results on Thursday, January 29, with EPS of $2.86, topping the $2.76 consensus. Revenue of $5.65 billion was slightly below the $5.76 billion analyst estimate but 2.3% higher than the same period a year earlier. The company posted a 10.43% return on equity and a 7.35% net margin, and sell-side forecasts call for 11.12 EPS this fiscal year.

Honeywell reported quarterly EPS of $2.59 on Thursday, January 29, exceeding the $2.54 consensus. Revenue reached $10.07 billion, above the $9.60 billion estimate and 6.4% higher year over year. Honeywell recorded a 12.74% net margin and a 40.64% return on equity, and analysts project 10.34 EPS for the full year.

All three companies continued regular dividend payments. Leidos paid a quarterly dividend of $0.43 per share on March 31 to shareholders of record on March 16, implying an annualized $1.72 and a yield of 1.1%. Its dividend payout ratio stands at 15.45%.

L3Harris paid a quarterly dividend of $1.25 per share on March 20 to shareholders of record on March 6. The annualized dividend of $5.00 equates to a 1.4% yield, and its payout ratio is 58.62%. Honeywell distributed a $1.19 quarterly dividend on March 13 to shareholders of record on February 27, equal to $4.76 annually and a 2.0% yield, with a payout ratio of 59.57%.

Recent insider activity has included share sales at all three firms. At Leidos, insider Elizabeth A. Porter sold 2,000 shares on April 7 under a Rule 10b5-1 plan, retaining 49,476 shares afterward. At L3Harris, insiders Samir Mehta and Jon Rambeau each sold 5,528 shares on March 2, leaving them with 7,756 and 7,660 shares respectively; company insiders sold 19,025 shares over the last 90 days. At Honeywell, Director D Scott Davis sold 2,367 shares on February 19, and Vice President Robert D. Mailloux sold 5,274 shares on February 6; insiders have sold 18,190 Honeywell shares in the last 90 days.

On Monday, Leidos shares opened at $152.97, giving the company a market capitalization of $19.29 billion, a price-to-earnings ratio of 13.74, a PEG ratio of 1.08 and a beta of 0.65. L3Harris opened at $353.61, with a $66.05 billion market cap, a P/E of 41.45, a PEG ratio of 1.79 and a beta of 0.62. Honeywell opened at $235.11, corresponding to a $149.45 billion market value, a P/E of 29.42, a PEG ratio of 3.40 and a beta of 0.93.

Analysts remain broadly positive on the group. Leidos carries a "Moderate Buy" average rating, with one Strong Buy, seven Buy and five Hold recommendations and an average price target of $208.27. Recent actions include an Argus upgrade to "strong-buy," target cuts from Stifel Nicolaus and Royal Bank of Canada, and new "equal weight" coverage from Wells Fargo & Company (WFC).

L3Harris also holds a "Moderate Buy" consensus, based on one Strong Buy, twelve Buy and four Hold ratings, and an average target of $349.55. Recent notes include upgrades from Weiss Ratings and Wall Street Zen and higher price targets from Citigroup (C) and UBS. Honeywell similarly has a "Moderate Buy" average rating, with fourteen Buy, seven Hold and one Sell recommendation, and an average target of $251.83. Argus, BMO Capital Markets, Citigroup (C) and Wells Fargo (WFC) have all raised or initiated targets in recent months, while Vertical Research downgraded the stock to "hold."

Leidos provides technology and engineering services to government and commercial customers, with an emphasis on national security, defense, intelligence and civil government markets. Its offerings include systems integration, cybersecurity, software development, data analytics and mission support.

L3Harris designs and supports communications systems, avionics, electronic warfare and intelligence, surveillance and reconnaissance sensors, as well as space systems and mission integration for defense, intelligence and public safety applications.

Honeywell International is a diversified conglomerate that manufactures commercial and consumer products, aerospace systems and industrial software. Its businesses span aerospace, building technologies, performance materials and process technologies, and safety and productivity solutions.