Arconic (NYSE:ARNC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “Arconic swung to profit in the fourth quarter of 2018. Adjusted earnings and revenues both beat the respective Zacks Consensus Estimate. The company revealed its plans to split its businesses. 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 is exposed to pricing pressure and weakness in certain end-markets. The company also faces earnings headwinds from higher transportation charges and aluminum scrap spreads. Its high balance sheet leverage is another concern. The company has also underperformed the industry it belongs to over the past three months.”
Several other analysts also recently weighed in on the company. ValuEngine downgraded Arconic from a “sell” rating to a “strong sell” rating in a research note on Tuesday, January 22nd. JPMorgan Chase & Co. downgraded Arconic from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $24.00 to $22.00 in a research note on Monday, January 14th. Jefferies Financial Group set a $25.00 target price on Arconic and gave the company a “buy” rating in a research note on Wednesday, October 31st. Longbow Research upgraded Arconic from a “neutral” rating to a “buy” rating and lowered their target price for the company from $23.25 to $18.26 in a research note on Thursday, December 20th. Finally, TheStreet upgraded Arconic from a “d+” rating to a “c-” rating in a research note on Monday, October 15th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the stock. Arconic currently has a consensus rating of “Hold” and an average price target of $23.48.
Arconic (NYSE:ARNC) last announced its earnings results on Friday, February 8th. The basic materials company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.03. The company had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.47 billion. Arconic had a return on equity of 12.91% and a net margin of 4.58%. The company’s revenue was up 6.1% on a year-over-year basis. During the same period last year, the firm earned $0.31 earnings per share. On average, sell-side analysts forecast that Arconic will post 1.59 EPS for the current fiscal year.
Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc lifted its holdings in Arconic by 1.5% in the third quarter. Vanguard Group Inc now owns 44,331,106 shares of the basic materials company’s stock worth $975,728,000 after acquiring an additional 653,470 shares during the last quarter. Canyon Capital Advisors LLC lifted its holdings in Arconic by 17.9% in the third quarter. Canyon Capital Advisors LLC now owns 8,500,768 shares of the basic materials company’s stock worth $187,102,000 after acquiring an additional 1,292,668 shares during the last quarter. Morgan Stanley lifted its holdings in Arconic by 134.9% in the third quarter. Morgan Stanley now owns 3,406,246 shares of the basic materials company’s stock worth $74,972,000 after acquiring an additional 1,955,880 shares during the last quarter. State of New Jersey Common Pension Fund D lifted its holdings in Arconic by 136.8% in the fourth quarter. State of New Jersey Common Pension Fund D now owns 2,250,000 shares of the basic materials company’s stock worth $37,935,000 after acquiring an additional 1,300,000 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its holdings in Arconic by 1,764.5% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 2,173,996 shares of the basic materials company’s stock worth $129,000 after acquiring an additional 2,057,395 shares during the last quarter. 83.82% of the stock is currently owned by institutional investors and hedge funds.
Arconic Company Profile
Arconic Inc engineers, manufactures, and sells lightweight metals worldwide. The company operate in 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 for aerospace (commercial and defense), industrial, commercial transportation, and power generation end markets.
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