Zacks Investment Research upgraded shares of Arconic (NYSE:ARNC) from a sell rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Arconic has outperformed the industry it belongs to over the past three months. Arconic is well placed to gain from strong demand trends in aerospace and automotive markets. It should also benefit from its cost-cutting and productivity actions. Major contract wins in aerospace will also support its results. However, Arconic faces earnings headwinds from charges related to LIFO method of accounting as a result of a sharp rise in aluminum prices. The company is also exposed to pricing pressure and weakness in certain end-markets. In particular, the company is seeing lower sales in industrial gas turbine market due to weak market conditions. Its high balance sheet leverage is another concern.”
Other equities research analysts also recently issued reports about the company. Seaport Global Securities reissued a buy rating on shares of Arconic in a report on Wednesday, July 18th. Jefferies Financial Group set a $25.00 target price on Arconic and gave the stock a buy rating in a report on Wednesday, August 1st. Cowen restated a hold rating and issued a $15.00 price target on shares of Arconic in a research note on Tuesday, July 31st. Morgan Stanley set a $20.00 price target on Arconic and gave the stock a hold rating in a research note on Monday, July 16th. Finally, ValuEngine upgraded Arconic from a strong sell rating to a sell rating in a research note on Wednesday, September 12th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and six have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and an average price target of $25.08.
Arconic stock opened at $22.03 on Tuesday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.15 and a current ratio of 2.04. Arconic has a 12 month low of $16.47 and a 12 month high of $31.17. The firm has a market capitalization of $10.88 billion, a price-to-earnings ratio of 17.73, a P/E/G ratio of 0.87 and a beta of 1.31.
Arconic (NYSE:ARNC) last released its earnings results on Tuesday, July 31st. The basic materials company reported $0.37 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.29 by $0.08. Arconic had a positive return on equity of 12.06% and a negative net margin of 2.55%. The business had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.49 billion. During the same period in the previous year, the company posted $0.32 earnings per share. The company’s revenue for the quarter was up 9.6% compared to the same quarter last year. On average, research analysts predict that Arconic will post 1.29 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Sunday, November 25th. Stockholders of record on Friday, November 2nd will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 1.09%. The ex-dividend date of this dividend is Thursday, November 1st. Arconic’s dividend payout ratio is currently 19.67%.
Several hedge funds have recently bought and sold shares of ARNC. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its position in Arconic by 5.1% during the second quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 60,745 shares of the basic materials company’s stock valued at $1,033,000 after acquiring an additional 2,924 shares during the last quarter. Bell & Brown Wealth Advisors LLC increased its position in Arconic by 17.8% during the second quarter. Bell & Brown Wealth Advisors LLC now owns 20,142 shares of the basic materials company’s stock valued at $343,000 after acquiring an additional 3,050 shares during the last quarter. Intact Investment Management Inc. increased its position in Arconic by 22.1% during the second quarter. Intact Investment Management Inc. now owns 17,700 shares of the basic materials company’s stock valued at $301,000 after acquiring an additional 3,200 shares during the last quarter. CIBC Asset Management Inc increased its position in Arconic by 7.2% during the second quarter. CIBC Asset Management Inc now owns 48,040 shares of the basic materials company’s stock valued at $817,000 after acquiring an additional 3,230 shares during the last quarter. Finally, KBC Group NV increased its position in Arconic by 4.1% during the second quarter. KBC Group NV now owns 83,356 shares of the basic materials company’s stock valued at $1,418,000 after acquiring an additional 3,288 shares during the last quarter. Hedge funds and other institutional investors own 82.96% of the company’s stock.
Arconic Inc engineers, manufactures, and sells lightweight metals of aluminum, titanium, and nickel worldwide. It operates through three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions. The Engineered Products and Solutions produces and sells fastening systems and seamless rolled rings; investment castings, including airfoils and forged jet engine components; and extruded, machined, and formed aircraft parts, as well as various forged, extruded, and machined metal products.
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