Zacks Investment Research lowered shares of Arconic (NYSE:ARNC) from a hold rating to a strong sell rating in a research report released on Monday morning.
According to Zacks, “Earnings estimates for Arconic for the first quarter have been going down over the past month. The company is exposed to pricing pressure in EP&S and GRP segments. Unfavorable pricing in these units may weigh on margins of these businesses in the near term. Arconic also faces earnings headwinds stemming from charges related to LIFO method of accounting. The company is also exposed to weakness in certain end-markets. We are also concerned about its high balance sheet leverage. Arconic has also underperformed the industry it belongs to over the past six months.”
Other equities research analysts also recently issued reports about the company. Cowen reissued a hold rating and issued a $25.00 price objective on shares of Arconic in a research note on Thursday, February 1st. Seaport Global Securities reissued a buy rating and issued a $32.00 price objective on shares of Arconic in a research note on Tuesday, February 6th. ValuEngine downgraded Arconic from a hold rating to a sell rating in a research note on Monday, April 2nd. Wells Fargo began coverage on Arconic in a research note on Thursday, January 4th. They issued an outperform rating and a $35.00 price objective for the company. Finally, Morgan Stanley reissued a hold rating and issued a $28.00 price objective (down from $30.00) on shares of Arconic in a research note on Friday, February 23rd. Two research analysts have rated the stock with a sell rating, six have given a hold rating and five have assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $29.27.
Arconic (NYSE:ARNC) last announced its quarterly earnings data on Monday, February 5th. The basic materials company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.07. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.08 billion. Arconic had a positive return on equity of 11.29% and a negative net margin of 0.57%. The business’s revenue for the quarter was up 10.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.12 EPS. research analysts forecast that Arconic will post 1.48 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, May 25th. Shareholders of record on Friday, May 4th will be given a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 1.02%. The ex-dividend date of this dividend is Thursday, May 3rd. Arconic’s payout ratio is currently 19.67%.
In other news, Director David P. Hess bought 40,300 shares of the company’s stock in a transaction on Thursday, February 8th. The shares were bought at an average cost of $24.80 per share, with a total value of $999,440.00. Following the transaction, the director now directly owns 127,870 shares in the company, valued at approximately $3,171,176. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.17% of the company’s stock.
Hedge funds have recently modified their holdings of the business. Prime Capital Investment Advisors LLC acquired a new position in Arconic in the 4th quarter worth about $142,000. Lazard Asset Management LLC acquired a new position in Arconic in the 4th quarter worth about $167,000. Bluestein R H & Co. acquired a new position in shares of Arconic during the 4th quarter valued at about $204,000. Fox Run Management L.L.C. acquired a new position in shares of Arconic during the 4th quarter valued at about $205,000. Finally, UMB Bank N A MO acquired a new position in shares of Arconic during the 4th quarter valued at about $212,000. 80.48% of the stock is currently owned by institutional investors.
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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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