HON Sets June 15 Record Date For Aerospace Spin-Off, Shares Distribution Set For June 29

The spin-off will give shareholders shares in the new aerospace company, but it still depends on final approvals before it is completed.

• Honeywell will distribute Aerospace shares on June 29, with shareholders receiving 1 share for every 2 HON shares held on the record date of June 15.
• The aerospace unit is expected to start trading on Nasdaq under the ticker “HONA,” while Honeywell continues as “HON.”
• Honeywell also plans a 1-for-2 reverse stock split of its common shares after the spin-off is completed.

Honeywell (HON) announced on Friday that its board of directors has set June 15 as the record date for the previously announced spin-off of Honeywell Aerospace.

To execute the separation, Honeywell will distribute all outstanding shares of Honeywell Aerospace on a pro-rata basis to shareholders of record as of that date. The distribution is expected to take place on June 29, with shareholders receiving one share of the new aerospace company for every two shares of Honeywell held.

The company said the transaction still depends on certain remaining conditions, including formal board approval of the final distribution agreement filed with the SEC. The spin-off is expected to be tax-free for U.S. shareholders, except for any cash received in lieu of fractional shares.

HON stock fell 0.23% in after-hours trading on Friday after closing the regular session down 1.69%. 

Honeywell Aerospace To Begin Trading As ‘HONA’

Following completion of the spin-off, Honeywell Aerospace is expected to begin trading on Nasdaq on June 29 under the ticker ‘HONA,’ while Honeywell will continue trading under its existing ticker, HON.

Management said the separation will allow the aerospace business to operate as a focused, standalone company better positioned to pursue opportunities in both commercial and defense markets. 

Reverse Stock Split To Follow Spin-Off

Honeywell also announced a planned 1-for-2 reverse stock split of its common stock, which will take effect after the spin-off is completed.

Under the plan, every two shares of Honeywell common stock will be combined into one, reducing total outstanding shares from about 634 million to roughly 317 million. The number of authorized shares will also be reduced proportionately, while par value will remain unchanged. No fractional shares will be issued. 

Analysts Raise PT On Honeywell

In separate news, RBC Capital raised its price target on Honeywell to $275 from $268, while maintaining an ‘Outperform’ rating, according to TheFly. The analyst said in a research note that the company’s upcoming Investor Day could provide a positive update, with expectations for a mid-single-digit organic growth outlook and continued margin expansion driven by Industrial Automation moving toward 20% earnings before interest, taxes, and amortization (EBITA) margins.

Earlier, on Wednesday, Goldman Sachs also raised its price target on Honeywell to $276 from $258 and maintained a ‘Buy’ rating.  

HON Stock: What Retail Sentiment Says

Stocktwits sentiment on HON remained “bullish” on Friday, unchanged over the past 24 hours, while message volume was “high.”

HON shares have declined nearly 6% over the past 12 months. 

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