HE Should I Buy
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Hawaiian Electric Industries Inc (HE) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is facing significant financial challenges, unresolved regulatory issues, and mixed analyst sentiment. While there are some positive catalysts like potential wildfire settlement approval and favorable convertible bond terms, the negative catalysts, including declining financial performance and unresolved liabilities, outweigh the positives. The technical indicators and options data suggest a neutral to slightly bearish sentiment, and no strong trading signals are present to indicate an immediate buying opportunity.
The stock's MACD is negatively expanding, indicating bearish momentum. RSI is neutral at 52.114, showing no clear overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading near key support levels, with a pivot at 16.282 and support at 15.429. This suggests limited upside potential in the short term.
Potential wildfire settlement approval, positive Wildfire Recovery Fund Study, favorable convertible bond terms, and inclusion in the S&P 600 index.
Declining financial performance with significant YoY drops in revenue (-5.12%), net income (-129.45%), and EPS (-119.78%). Unresolved regulatory issues, including alternative rebasing filing, PBR repair package, and wildfire fund design. Analyst downgrades and reduced price targets.
In Q3 2025, revenue dropped to $790.61M (-5.12% YoY), net income fell to $30.75M (-129.45% YoY), and EPS declined to $0.18 (-119.78% YoY). Gross margin improved slightly to 6.58 (+2.97% YoY), but overall financial performance is weak.
Analysts are mixed, with Barclays raising the price target to $13 but maintaining an Equal Weight rating, while Jefferies downgraded the stock to Underperform with a price target of $12.50. Analysts highlight unresolved regulatory and liability issues, which are significant risks for the stock.
