Howmet Aerospace (NYSE:HWM) Sets New 52-Week High on Earnings Beat

Howmet Aerospace Inc. (NYSE:HWM)’s share price hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $77.88 and last traded at $77.01, with a volume of 1610642 shares trading hands. The stock had previously closed at $66.78.

The company reported $0.57 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.05. The company had revenue of $1.82 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Howmet Aerospace had a return on equity of 20.12% and a net margin of 11.52%. Howmet Aerospace’s quarterly revenue was up 13.8% on a year-over-year basis. During the same period last year, the firm earned $0.42 earnings per share.

Howmet Aerospace Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 28th. Investors of record on Friday, May 10th will be issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 0.25%. The ex-dividend date of this dividend is Thursday, May 9th. Howmet Aerospace’s dividend payout ratio (DPR) is 10.93%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on HWM shares. KeyCorp raised their price objective on shares of Howmet Aerospace from $60.00 to $70.00 and gave the stock an “overweight” rating in a report on Wednesday, February 21st. Benchmark restated a “buy” rating and issued a $53.00 price objective on shares of Howmet Aerospace in a research note on Friday, April 19th. The Goldman Sachs Group lifted their target price on Howmet Aerospace from $77.00 to $87.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. boosted their target price on Howmet Aerospace from $55.00 to $60.00 and gave the company an “overweight” rating in a report on Wednesday, February 14th. Finally, Sanford C. Bernstein began coverage on Howmet Aerospace in a research note on Friday, January 5th. They set an “outperform” rating and a $67.00 price target on the stock. Two investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $69.77.

Insider Activity

In other news, EVP Neil Edward Marchuk sold 45,000 shares of the company’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $67.44, for a total transaction of $3,034,800.00. Following the completion of the sale, the executive vice president now owns 229,568 shares in the company, valued at $15,482,065.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.12% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Csenge Advisory Group increased its position in Howmet Aerospace by 5.6% during the 1st quarter. Csenge Advisory Group now owns 13,010 shares of the company’s stock worth $890,000 after purchasing an additional 688 shares during the period. FDx Advisors Inc. purchased a new position in Howmet Aerospace in the first quarter worth $263,000. Mediolanum International Funds Ltd acquired a new stake in Howmet Aerospace in the first quarter valued at $10,566,000. Central Pacific Bank Trust Division purchased a new stake in shares of Howmet Aerospace during the 1st quarter worth $111,000. Finally, Whittier Trust Co. boosted its position in shares of Howmet Aerospace by 81.4% during the 1st quarter. Whittier Trust Co. now owns 508 shares of the company’s stock worth $35,000 after purchasing an additional 228 shares in the last quarter. 90.46% of the stock is owned by hedge funds and other institutional investors.

Howmet Aerospace Stock Performance

The company has a current ratio of 1.86, a quick ratio of 0.87 and a debt-to-equity ratio of 0.88. The stock’s 50 day moving average price is $66.44 and its two-hundred day moving average price is $57.73. The firm has a market capitalization of $32.21 billion, a price-to-earnings ratio of 43.10, a PEG ratio of 1.74 and a beta of 1.41.

Howmet Aerospace Company Profile

Howmet Aerospace Inc provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels.