Zacks Investment Research upgraded shares of Arconic (NYSE:ARNC) from a sell rating to a hold rating in a report released on Tuesday.
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.”
ARNC has been the topic of a number of other reports. Cowen reissued a hold rating and issued a $15.00 price objective on shares of Arconic in a research note on Tuesday, July 31st. Longbow Research downgraded Arconic from a buy rating to a neutral rating in a research note on Monday, September 17th. They noted that the move was a valuation call. Jefferies Financial Group began coverage on Arconic in a research note on Monday, July 16th. They issued a buy rating and a $23.00 price objective on the stock. Seaport Global Securities reissued a buy rating on shares of Arconic in a research note on Wednesday, July 18th. Finally, Morgan Stanley set a $22.00 price objective on Arconic and gave the company a hold rating in a research note on Wednesday, October 10th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $25.08.
Arconic (NYSE:ARNC) last issued its quarterly earnings data on Tuesday, July 31st. The basic materials company reported $0.37 earnings per share for the quarter, beating the Zacks’ 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 last year, the business earned $0.32 EPS. The firm’s revenue was up 9.6% compared to the same quarter last year. On average, research analysts forecast that Arconic will post 1.29 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Sunday, November 25th. Shareholders of record on Friday, November 2nd will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 1.10%. The ex-dividend date is Thursday, November 1st. Arconic’s dividend payout ratio (DPR) is currently 19.67%.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Guardian Investment Management grew its holdings in Arconic by 7.5% in the 3rd quarter. Guardian Investment Management now owns 33,687 shares of the basic materials company’s stock valued at $742,000 after buying an additional 2,355 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. grew its holdings in Arconic by 5.1% in the 2nd 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 buying an additional 2,924 shares during the last quarter. Bell & Brown Wealth Advisors LLC grew its holdings in Arconic by 17.8% in the 2nd quarter. Bell & Brown Wealth Advisors LLC now owns 20,142 shares of the basic materials company’s stock valued at $343,000 after buying an additional 3,050 shares during the last quarter. Intact Investment Management Inc. grew its holdings in Arconic by 22.1% in the 2nd quarter. Intact Investment Management Inc. now owns 17,700 shares of the basic materials company’s stock valued at $301,000 after buying an additional 3,200 shares during the last quarter. Finally, CIBC Asset Management Inc grew its holdings in Arconic by 7.2% in the 2nd quarter. CIBC Asset Management Inc now owns 48,040 shares of the basic materials company’s stock valued at $817,000 after buying an additional 3,230 shares during the last quarter. 82.96% of the stock is currently owned by hedge funds and other institutional investors.
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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