Honeywell Shares Are Up Today: What's Going On?

Honeywell International Inc. HON shares are trading higher Monday. The company is preparing to break up into two independent publicly traded companies, according to sources familiar with the matter.

What To Know: According to Bloomberg, one company will focus on automation and the other on aerospace and defense. The move comes after activist investor Elliott Investment Management pushed for a breakup following its accumulation of a $5 billion stake in the company, its largest-ever position in a single stock.

The Charlotte, North Carolina-based industrial conglomerate may formally announce the split in early February alongside its fourth-quarter earnings, pending approval by the company's board. Honeywell had previously announced in December that it was reviewing a potential separation of its aerospace business and would provide an update during the earnings release.

Honeywell's shares have risen more than 11% over the past year, giving the company a market value of approximately $143 billion. However, its stock performance has lagged the broader S&P 500, which increased by over 20% during the same period.

Analysts have suggested that the breakup could unlock significant value. Barclays recently valued Honeywell's assets at $270 per share, well above the company's closing price of $218.19 on Jan. 10.

Under CEO Vimal Kapur, Honeywell has already taken steps to streamline its portfolio. In October, the company announced plans to spin off its advanced materials division. Analysts have also highlighted the potential standalone value of its aerospace business, estimating it to be worth more than $90 billion.

Honeywell joins other large industrial conglomerates pursuing breakups to focus on specialized markets. General Electric Co. recently split into three parts, spinning off its healthcare and energy divisions. Honeywell had faced similar calls for a breakup in 2017 from Third Point LLC, which also urged the separation of the aerospace unit.

The final details and timeline of Honeywell's breakup remain uncertain, and the company has not provided additional comments beyond its December statement.

HON Price Action: Honeywell international shares finished 0.42% higher at $219.10 on Monday, according to Benzinga Pro.

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