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Hawaiian Electric Stock Faces Pressure as Jefferies Cuts Price Target

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 12/19/2025, 4:45 pm ET 12/19/2025, 4:45 pm ET | 5 min 5 min read
Hawaiian Electric Stock Faces Pressure as Jefferies Cuts Price Target Thumbnail

Hawaiian Electric Industries Inc. stocks have been trading down by -5.5 percent amid concerns over operational challenges.

Utilities industry expert:

Analyst sentiment – negative

  1. Hawaiian Electric (HE) currently holds a moderate market position within the utilities sector. Its fundamental analysis reveals a concerning pre-tax profit margin of -6.1%, indicating inefficiencies relative to peers. The company’s return on equity stands at -6.69%, suggesting issues with shareholder value generation. Financially, HE is heavily leveraged with a total debt-to-equity ratio of 1.91, reflecting potential vulnerabilities amid rising interest rates. Yet, its revenue of approximately $3.22 billion complements a relatively attractive price-to-earnings ratio of 7.88, hinting at a potentially underpriced equity versus industry averages. However, critical performance insights include negative returns on capital (-29.01%) and equities, restraining investor confidence in long-term growth potential.

  2. HE’s recent price activity indicates a volatile trading environment with no strong directional trend. Price fluctuations within the week saw a minor rally culminating at $12.20, followed by a sharp drop to a closing of $11.51, indicating potential oscillation around support at $11.50. Technical indicators suggest low volume during upward price movement and higher volume sell-offs, which could reflect investor skepticism. Current technical strategy should focus on defensive postures; consider short positions as the final close suggests resistance at $12.20 may remain unchallenged. Monitor for a bearish continuation confirmed by volume spikes aligned with support breakdowns.

  3. Recent analyst actions, such as Jefferies’ price target reduction to $12 and the maintained Hold rating, underscore market caution towards Hawaiian Electric. Relative to the broader Utilities and Regulated Utilities indices, HE is underperforming, plagued by operational challenges and financial metric lags. Despite these obstacles, the stock’s proximity to the lowered target suggests potential stabilization at current levels. Strategic focus should remain on near-term resistance, pegged at $12.20, with possible yet cautious support at $11.50. With prevailing underperformance factors, while temporary stabilization may occur, broader recovery hinges on significant fundamental improvements.

Candlestick Chart

Weekly Update Dec 15 – Dec 19, 2025: On Friday, December 19, 2025 Hawaiian Electric Industries Inc. stock [NYSE: HE] is trending down by -5.5%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Hawaiian Electric Industries, Inc. recently reported its earnings for the third quarter of 2025. With operating revenue clocking in at $790.61M, the key figures portray a mixed picture of financial stability met with strategic hurdles. The gross profit stands firm, but profitability metrics like pre-tax profit margin and total profit margin reveal stark challenges at -6.1% and 0.53%, respectively.

The company’s balance sheet reflects a robust asset base, totaling approximately $8.81B, yet it also indicates significant liabilities. This positions Hawaiian Electric in a delicate equilibrium, leveraging $285.06M in long-term debt. The net income from continuing operations hit $31.22M, a notable figure amidst a backdrop of operational and interest expenses. Key ratios highlight concerns with interest coverage and leverage, underlining higher debt levels that bring about potential risk for equity holders.

Stock price trends suggest marginal volatility, with limited upward swings and a flat overall trend across recent trading sessions. As the stock tentatively moved from $11.89 to $11.51 over the last few days, there’s an evident investor reticence imprinted by revised market forecasts. This stable yet cautious movement illustrates the need for strategic re-evaluation.

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Conclusion

Hawaiian Electric Industries faces a pivotal moment, underscored by the reduction in its price target by Jefferies. The Q3 earnings underscored critical financial elements that guide future expectations. The electric utility giant stands at the crossroads of potential strategic recalibration amidst financial hurdles. The persistence of high leverage ratios and debt influences call for keen attention from executives and shareholders alike.

While the company’s solid revenue framework offers a foundation, its path forward demands an adept balance of investments, cost management, and market positioning. As millionaire penny stock trader and teacher Tim Sykes, says, “Be patient, don’t force trades, and let the perfect setups come to you.” The upcoming quarters will likely test its resilience and ability to chart a strategic blueprint for growth and value creation in a fluctuating regulatory and economic landscape. This landscape presents ongoing challenges and opportunities, making shareholder vigilance ever crucial. Traders are encouraged to consider these financial signals in their trading decisions, as any strategic pivots could significantly sway Hawaiian Electric’s market trajectory.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”