Exploring HEICO Corporation (HEI) Investor Profile: Who’s Buying and Why?

You're staring at HEICO Corporation's stock price-which is around $303.22 in late 2025-and you're asking the right question: who is defintely buying an aerospace supplier trading at a price-to-earnings (P/E) ratio north of 66.35? The answer lies in the conviction of its largest institutional holders, including Vanguard Group Inc and BlackRock, Inc., who maintain significant positions, plus the notable insider activity where company executives have purchased over 4,448 shares worth more than $1.09 million in the last 90 days. They are betting on a proven growth engine: the company just reported record third-quarter 2025 net income of $177.3 million, a 30% year-over-year increase, driven by $1.15 billion in net sales. This exceptional performance, particularly in the Flight Support Group, is the core of the investment thesis, but can that organic growth sustain a $42.21 billion market capitalization when the consensus price target is only $343.62? We need to unpack the near-term risks in the defense segment and the opportunities in the aftermarket parts business to see if the smart money is still right.

Who Invests in HEICO Corporation (HEI) and Why?

The investor base for HEICO Corporation (HEI) is a classic mix, but it's heavily weighted toward professional money managers who are hunting for consistent, high-quality growth. You see a clear preference for long-term capital appreciation over immediate income, which makes sense given the company's aggressive M&A strategy.

For a company that has delivered such consistent performance in the aerospace and defense sectors, its ownership structure tells a story of conviction. It's defintely not a stock for the faint of heart, given its premium valuation, but the quality of its earnings keeps the big money locked in.

Key Investor Types: The Institutional Anchor

Institutional investors-the mutual funds, pension funds, and endowments-are the primary anchor for HEICO Corporation. They hold the majority of the shares, with approximately 46.64% of the stock owned by this group, based on recent data. This is a huge vote of confidence, but it also means the stock price is highly sensitive to their buying and selling patterns. The rest is split between insiders and the public.

The company's ownership structure, as of late 2025, looks like this:

• Institutional Investors: Approximately 46.64%
• Public Companies and Individual Investors (Retail): Approximately 34.94%
• Insiders (Management/Directors): Approximately 18.42%

The insider ownership is particularly notable at nearly one-fifth of the company, which is a strong signal that management's interests are tightly aligned with yours. Major institutional holders include giants like Vanguard Group Inc., BlackRock, Inc., and the Growth Fund of America, all holding millions of shares and signaling a long-term belief in the company's trajectory.

Investment Motivations: Growth, Not Yield

Investors are drawn to HEICO Corporation for one main reason: its reliable, double-digit growth, which is a rarity in the industrial sector. They are buying a growth stock that just happens to pay a tiny dividend. The core motivation is the company's ability to execute on its dual-engine strategy: organic growth and strategic acquisitions.

Here's the quick math from the 2025 fiscal year that gets investors excited:

• Sales Growth: Net sales rose 16% to $1.15 billion in the third quarter of fiscal 2025.
• Net Income: Q3 2025 net income jumped 30% to $177.3 million.
• Acquisition Engine: The Flight Support Group's organic net sales were up 13% in Q3 2025, plus they get a boost from bolt-on acquisitions like Axillion Fuel Containment.

To be fair, the dividend yield is low, around 0.08%, with an annual dividend of $0.24 per share in 2025. But the low payout ratio of about 5% is actually a positive for growth investors, as it means the company is reinvesting nearly all of its earnings back into the business for future growth, which is exactly what a high-multiple stock should be doing. You're not buying it for the quarterly check; you're buying it for the capital gain.

Investment Strategies: The Long-Term M&A Play

The typical strategy for HEICO Corporation investors is a long-term holding period, often classified as a 'buy and hold' growth strategy. It's not a stock that lends itself well to short-term trading because its valuation is consistently high-analysts often reiterate a 'Hold' rating simply because the stock is expensive, not because the business is bad.

The strategy hinges on two key themes:

• M&A-Fueled Growth: Investors bet on management's proven ability to identify and successfully integrate small, niche aerospace and defense companies, a strategy that has consistently driven the stock price higher.
• Aftermarket Dominance: The Flight Support Group's strength in the commercial aerospace aftermarket, providing replacement parts, offers a recession-resistant revenue stream that isn't tied to volatile new aircraft production cycles.

Value investing, in the traditional sense, is tough here because the stock's forward P/E is often north of 50x. Instead, investors focus on the long-term earnings per share (EPS) growth, which is projected to be robust, with 2025 EPS forecasted at $4.82. The investment is a bet on the continued execution of a highly successful, decades-long growth model. If you want a deeper dive into the company's foundation, you can read their Mission Statement, Vision, & Core Values of HEICO Corporation (HEI).

Institutional Ownership and Major Shareholders of HEICO Corporation (HEI)

You're looking at HEICO Corporation (HEI) and trying to figure out who the big players are and what they're doing. The direct takeaway is that HEICO's investor base is a stable mix of institutional and significant insider ownership, which creates a strong alignment of interests, but the recent quarter saw a tug-of-war between major funds buying in and others trimming their stakes.

As of late 2025, institutional investors-meaning mutual funds, pension funds, endowments, and the like-hold a substantial portion of the company. These professional money managers control about 27.12% of the stock, but when you look at the total number of institutional owners, it's a massive group of 1,136 entities holding a total of over 48,806,488 shares. This high level of institutional backing is a vote of confidence in HEICO's business model, which focuses on both organic growth and strategic acquisitions, especially in the aerospace and defense sectors. You can read more about that strategy here: HEICO Corporation (HEI): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors: Who Holds the Keys?

The largest institutional holders are exactly who you'd expect to see in a stable, well-regarded aerospace component and electronics company. These aren't speculative hedge funds taking short-term bets; they are long-term asset managers. They are buying HEICO because of its consistent performance, like the reported Q3 2025 revenue of $1.15 billion, which was up 15.7% year-over-year.

Here's the quick math on the top institutional owners based on their most recent filings from the third quarter of 2025 (Q3 2025), with the stock trading around $325.97 per share in November 2025:

What this table hides is the powerful influence of the Mendelson family, who are key insiders. Their combined ownership is significant-Laurans Mendelson alone holds over 4.16 million shares, making the insider ownership percentage in the range of 9.55% to 18.42%. That level of skin in the game is defintely a positive sign for long-term investors.

Changes in Ownership: The Recent Tug-of-War

The third quarter of 2025 showed a classic institutional tug-of-war, which is normal for a stock that has seen its price increase by about 19.00% over the past year. You saw some profit-taking, but also aggressive new buying, which is a key indicator of continued confidence.

On the selling side, Mar Vista Investment Partners LLC cut its stake by a notable 57.0% in Q2, shedding 62,947 shares. Even the giants aren't monolithic: BlackRock, Inc. trimmed its position slightly, selling 116,379 shares for a 2.962% decrease in Q3. These moves suggest some funds are rebalancing or taking gains after a strong run.

But the buying activity was just as strong, if not stronger, in terms of conviction:

• Congress Asset Management Co. boosted its position by a massive 366.0% in Q2, acquiring an additional 242,264 shares.
• Vanguard Group Inc. increased its holdings by 2.658% in Q3, adding 104,449 shares.
• Morgan Stanley showed high conviction, increasing its stake by 15.654% in Q3, buying 137,153 shares.
• Mackenzie Financial Corp. opened a substantial new position in Q1, valued at approximately $40.95 million.

This pattern of large, established funds initiating or significantly increasing positions while others take profits suggests that the market's long-term view on HEICO's growth story-driven by its Flight Support Group and Electric Technologies Group-remains firmly positive.

Impact of Institutional Investors: Stability and Strategy

These large institutional investors play two crucial roles for HEICO: providing stock price stability and supporting the company's long-term strategy. When a few major institutions hold a large percentage of shares, it reduces the volatility that comes from individual retail investors trading on emotion. This stability is vital for a company that relies on a steady stock price for its acquisition strategy.

The fact that HEICO consistently beats earnings estimates-like the Q2 2025 EPS of $1.26 versus the $1.12 estimate-reinforces the institutional thesis that management is executing well. The consensus analyst rating of 'Moderate Buy' with an average target price around $346.09 is a direct reflection of this institutional confidence. These investors aren't just passive holders; they are implicitly endorsing HEICO's model of making strategic, bolt-on acquisitions and driving organic growth in the aerospace aftermarket and niche electronics markets. Their presence is a powerful signal that the company's valuation, while premium, is justified by its execution and market position.

Key Investors and Their Impact on HEICO Corporation (HEI)

You want to know who is buying HEICO Corporation (HEI) and why, and the answer is a mix of massive, largely passive institutional funds and a deeply entrenched, highly successful founding family. The core takeaway is this: the stock's performance is built on the Mendelson family's 35-year track record of disciplined acquisitions, which major institutional investors are betting will continue, despite the tight insider control.

Institutional ownership is high, with major financial players holding a substantial majority of the float. As of late 2025 filings, institutional investors own approximately 73.22% of the company's stock, signaling broad, long-term confidence in HEICO Corporation's position in the aerospace and defense markets. This is a classic aerospace compounder story.

• Vanguard Group, Inc.: Largest institutional holder, representing a massive anchor of stability.
• BlackRock, Inc.: Another top holder, invested for the long-term growth and strong profitability.
• Principal Global Investors LLC: A key player whose stake underscores belief in the company's M&A strategy.
• The Mendelson Family: The most influential individual investors, whose insider ownership ensures management continuity.

The Mendelson Family and Insider Control: The Real Influence

The most significant investor influence is not from a hedge fund activist, but from the Mendelson family itself. The family, who took over the company in 1990, has a controlling interest through their combined stock holdings and the company's dual-class share structure (HEI and HEI.A), which gives them disproportionate voting power. This structure means outside investors are essentially betting on the Mendelsons' continued execution of their decentralized, entrepreneurial business model.

Here's the quick math on their success: a $100,000 investment in HEICO Corporation when the family took over in 1990 would be worth over $130 million today, representing a compound annual growth rate of nearly 23%. This track record is why the market tolerates the tight control. The recent passing of Executive Chairman Laurans A. Mendelson in September 2025 was a major event, but the succession plan, which immediately named his sons, Eric A. Mendelson and Victor H. Mendelson, as Co-Chairmen and Co-Chief Executive Officers, quickly affirmed continuity of leadership and strategy.

Why the Giants Stay: The Investment Thesis

The investment thesis for large funds like BlackRock is straightforward: HEICO Corporation is a highly profitable, resilient business in a growing sector. BlackRock's holding, for example, is predicated on the company's strong fundamentals, including a 10/10 Profitability Rank and impressive 26.70% 3-year revenue growth, as reported in early 2025. They are buying into a consistent M&A engine that acquires small, niche aerospace and electronics companies, then lets them run autonomously.

The company's financial performance in the 2025 fiscal year provides the concrete evidence for this thesis:

The institutional money stays because the company delivers. They are comfortable with a management team that consistently produces record results, like the $502.1 million in net income for the first nine months of fiscal 2025. You can read more about the foundation of this success here: HEICO Corporation (HEI): History, Ownership, Mission, How It Works & Makes Money.

Recent Investor Moves: Buying, Selling, and Insider Confidence

In the near-term, we saw a mix of institutional rebalancing and strong insider buying, which is defintely a bullish signal from management. While some institutional holders, like Bank Julius Baer & Co. Ltd Zurich, reduced their position by 9.9% in the second quarter of 2025-a move often seen as portfolio rebalancing-the insiders were actively increasing their exposure.

The most telling recent moves came from the Mendelson family in October 2025. Co-CEOs Eric A. Mendelson and Victor H. Mendelson executed significant stock options, with Eric A. Mendelson's total option exercises on October 30, 2025, valued at over $15.6 million. This isn't open market buying, but it is a massive increase in their direct share count, showing deep confidence in the company's future value. Other directors also made open market purchases in October 2025, acquiring shares at an average cost of around $243.93 per share.

Market Impact and Investor Sentiment

You're looking for a clear read on HEICO Corporation (HEI) right now, and the picture is one of strong fundamentals battling a premium valuation. The consensus among Wall Street analysts is a Moderate Buy, but that rating hides some serious divergence between the long-term institutional conviction and the near-term market caution. The average price target sits around $343.62, suggesting an upside of about 13.32% from the recent trading price of approximately $303.23.

The institutional money is defintely a mixed bag, which is why the stock has been choppy. While institutions own a significant portion-about 27.12% of the stock-their recent activity shows a strategic churn. For example, in the third quarter of 2025, BlackRock, Inc. decreased its position by -2.962%, shedding over 116,000 shares, but still holding a massive 3.81 million shares valued at roughly $1.3 billion as of September 30, 2025.

Contrast that with aggressive buying from others: American Century Companies Inc. boosted its stake by 45.7%, adding over 241,000 shares, and Congress Asset Management Co. grew its position by a staggering 366.0% in Q2, now owning 308,457 shares valued at over $101.2 million. That kind of commitment signals a belief in the long-term growth story, especially in the Flight Support Group.

Insider sentiment, to be fair, is a headwind. High-impact open-market selling from key executives has driven the overall insider power score to 'strongly negative,' despite some recent director purchases. Over the last year, insiders sold approximately $81.7 million worth of stock in high-impact transactions, versus $6.55 million purchased. It's a signal you can't ignore, even if the Mendelson family's long-term control remains firm.

Recent Market Reactions to Ownership Shifts

The market's reaction to these movements is swift, but often short-lived. The stock price, which hit a 52-week high of $338.92, has seen pressure recently, falling by -6.13% over a ten-day period in November 2025. Still, a single piece of positive news can send it soaring. Back in August 2025, following strategic business developments and a price target increase from Jefferies, HEICO Corporation's stock trended up by 8.93% in one day. The market is sensitive to the narrative of accretive (earnings-boosting) acquisitions and Flight Support Group strength.

The stock's high price-to-earnings (P/E) ratio, around 66.35 to 67.28, means any institutional trimming or insider selling is magnified in the short term. It's a growth stock priced for perfection, so any perceived weakness in ownership conviction causes a quick dip.

• Recent price: $303.23 (November 21, 2025).
• 52-week high: $338.92.
• Institutional ownership: 27.12% to 46.64%.

Analyst Views: Growth Outpaces Valuation Concerns

The analyst community is largely focused on the company's exceptional operational execution, which consistently beats expectations. For the third quarter of fiscal year 2025, HEICO Corporation reported revenue of $1.15 billion, which was a 15.7% year-over-year increase and beat the consensus estimate of $1.11 billion. Earnings per share (EPS) came in at $1.26, easily topping the expected $1.12.

Here's the quick math on why analysts are still bullish despite the high P/E: the Flight Support Group (FSG) saw a robust 18% year-over-year revenue increase to $802.7 million in Q3 2025, driven by strong aerospace aftermarket demand. The full fiscal year 2025 EPS is projected to be around $4.20. This double-digit growth, plus the strategic acquisitions like Axillion Fuel Containment, is the core thesis.

What this estimate hides is the persistent, high valuation. The stock trades at a premium, and the main caution from analysts is that the entry point is unattractive for value investors. The company's focus on acquisitions, while driving growth, also means debt management is key. You can read more about the company's core strategy in their Mission Statement, Vision, & Core Values of HEICO Corporation (HEI).

So, the big institutional players like Vanguard are adding, while others like BlackRock are slightly trimming, but the net effect is a strong institutional base that believes in the management team and the company's ability to execute its acquisition-driven, high-margin strategy. The risk is simply that the stock is already priced for that success.