Arconic (NYSE:ARNC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday, March 13th.
According to Zacks, “Quarterly earnings estimate of Arconic have been going down of late. The company is exposed to pricing pressure in EP&S and GRP segments and weakness in certain end-markets. It also faces earnings headwinds stemming from charges related to LIFO method of accounting. We are also concerned about its high balance sheet leverage. Arconic has also underperformed the industry it belongs to over the past six months.”
Several other research analysts have also recently issued reports on the company. Cowen reissued a “hold” rating and issued a $25.00 price objective on shares of Arconic in a research note on Wednesday, January 3rd. Wells Fargo assumed coverage on Arconic in a research note on Thursday, January 4th. They issued an “outperform” rating and a $35.00 price objective on the stock. Seaport Global Securities reissued a “buy” rating and issued a $33.00 price objective on shares of Arconic in a research note on Monday, January 22nd. Finally, Morgan Stanley reissued a “hold” rating and issued a $28.00 price objective (down previously from $30.00) on shares of Arconic in a research note on Friday, February 23rd. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and five have issued a buy rating to the company’s stock. Arconic has an average rating of “Hold” and an average price target of $29.70.
Arconic stock opened at $24.09 on Tuesday. The company has a market capitalization of $11,601.02, a P/E ratio of -109.50, a PEG ratio of 0.80 and a beta of 1.09. Arconic has a 52 week low of $21.75 and a 52 week high of $31.17. The company has a debt-to-equity ratio of 1.40, a quick ratio of 1.38 and a current ratio of 2.26.
Arconic (NYSE:ARNC) last released its earnings results on Monday, February 5th. The basic materials company reported $0.31 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.07. The firm had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.08 billion. Arconic had a positive return on equity of 11.29% and a negative net margin of 0.57%. The company’s quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.12 earnings per share. sell-side analysts forecast that Arconic will post 1.5 EPS for the current year.
In related news, Director David P. Hess bought 40,300 shares of the company’s stock in a transaction on Thursday, February 8th. The shares were acquired at an average price of $24.80 per share, with a total value of $999,440.00. Following the transaction, the director now owns 127,870 shares of the company’s stock, valued at $3,171,176. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.12% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in ARNC. Prime Capital Investment Advisors LLC bought a new stake in Arconic during the 4th quarter valued at $142,000. Lazard Asset Management LLC bought a new stake in Arconic during the 4th quarter valued at $167,000. Bluestein R H & Co. bought a new stake in Arconic during the 4th quarter valued at $204,000. Fox Run Management L.L.C. bought a new stake in Arconic during the 4th quarter valued at $205,000. Finally, National Planning Corp bought a new stake in Arconic during the 3rd quarter valued at $206,000. 80.48% of the stock is currently owned by institutional investors and hedge funds.
Arconic Company Profile
Arconic Inc, formerly Alcoa Inc, is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging.
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