Woodward (WWD, $121.96) to merge with Hexcel to create $6.4 billion company
Aerospace parts maker Woodward is planning to merge with Hexcel (which makes lightweight materials for aircraft, space and defense equipment).
Under the all-stock merger, current Woodward shareholders will own about 55% of the new company called Woodward Hexcel. Hexcel shareholders will own about 45%. Hexcel shareholders will get 0.625 shares of Woodward common stock for each share of Hexcel common stock. Woodward shareholders will get to have the same number of common stock shares in the newly combined company as before. The combined entity is valued at $6.4 billion.
Woodward will be raising its quarterly cash dividend to 28 cents a share, as part of the deal.
The combined company – set to be among the aerospace industry’s largest suppliers - will generate estimated net revenues of $5.3 billion (based on last year’s revenues), while having around 16,000 employees, and operations in 14 countries. Woodward Hexcel expects to save around $125 million in annual cost synergies by its second fiscal year.
The new company plans to invest $250 million on research and development in its first year.
WWD's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for WWD turned positive on April 23, 2025. Looking at past instances where WWD's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 21, 2025. You may want to consider a long position or call options on WWD as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
WWD moved above its 50-day moving average on April 24, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WWD crossed bullishly above the 50-day moving average on May 02, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WWD advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 249 cases where WWD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WWD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WWD broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WWD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.003) is normal, around the industry mean (10.766). P/E Ratio (31.743) is within average values for comparable stocks, (59.355). Projected Growth (PEG Ratio) (2.169) is also within normal values, averaging (2.099). Dividend Yield (0.005) settles around the average of (0.019) among similar stocks. P/S Ratio (3.608) is also within normal values, averaging (7.555).
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