Citigroup Backs Huntington Ingalls Industries (HII) on Strong Fundamentals—Here's What the Data Says

On December 12, 2025, Citigroup threw its weight behind Huntington Ingalls Industries with a Buy rating, signaling conviction in the defense contractor’s near-term prospects. The call came as analysts pegged a one-year price target of $336.16/share for HII—suggesting modest upside of 2.80% from the December 6 close of $326.99.

The Numbers Behind the Thesis

The analyst price range spans from $266.64 to $380.10, reflecting mixed sentiment on the stock’s trajectory. On the operational side, Huntington Ingalls Industries is projected to generate $11.51 billion in annual revenue, though this represents a 4.20% contraction. Non-GAAP EPS is forecast at $20.00, providing a baseline for valuation.

Institutional Money Speaks

Here’s where it gets interesting: 1,319 funds and institutions hold positions in HII, up 35 owners or 2.73% last quarter. Yet the picture isn’t uniformly bullish. While average portfolio weight across all funds rose to 0.20% (a 2.97% increase), total institutional share count actually fell 1.68% to 43.23 million shares. The put/call ratio of 0.91 leans bullish, though moderate.

The Institutional Reshuffle

VanEck Vectors Morningstar Wide Moat ETF slashed its position from 1.85 million to 1.44 million shares—a 28.18% cut that also trimmed portfolio weight by 1.86%. Contrast this with Vanguard Total Stock Market Index Fund Investor Shares, which increased holdings from 1.24 million to 1.26 million shares (+1.75%), boosting allocation by 7.46%.

Van Eck Associates similarly retreated, cutting 64,000 shares (5.08%) and reducing portfolio allocation by 6.86%. Meanwhile, Vanguard 500 Index Fund Investor Shares inched higher, adding 26,000 shares (+2.35%) and raising allocation weight by 7.67%. Even Geode Capital Management’s modest 1.20% position increase masked a dramatic 41.65% reduction in portfolio allocation.

The mixed signals suggest institutional players are recalibrating HII stakes as they reassess defense sector positioning into year-end.