Honeywell Soars 3.68% as Board Weighs Aerospace Spin-Off Amid Activist Pressure
1min read On December 16, Honeywell (HON) saw a 3.68% increase in its stock, marking the highest intra-day price since November 2024. The news follows the company's announcement that its board of directors is actively considering strategic options, including a potential spin-off of its aerospace division. Honeywell has indicated significant progress in this regard and plans to provide further updates when it announces its fourth-quarter earnings.
This move has been met with approval from activist investor Elliott Investment Management, which had previously advocated for such a separation. Elliott made a substantial acquisition of Honeywell's aerospace and automation businesses worth over $5 billion last year. Subsequent to Elliott's involvement, Honeywell also moved to sell its personal protective equipment business for $1.3 billion.
The decision to potentially divest its aerospace operations, a segment that generated $11.47 billion in revenue over the first three quarters of this year, forms a substantial part of Honeywell's sales, accounting for about 40% of total revenue. Elliott's backing underscores a strategic shift that could redefine Honeywell's focus and operational structure.
As the board progresses with its review, market participants are eager for updates in the forthcoming quarterly report. Honeywell's strategic pivots, driven in part by activist investors' pressure, highlight the company's adaptive approach in streamlining its business portfolio to potentially enhance shareholder value.