Howmet Aerospace (NYSE:HWM) Reaches New 52-Week High Following Strong Earnings

Howmet Aerospace Inc. (NYSE:HWM)’s share price reached a new 52-week high during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $94.14 and last traded at $93.24, with a volume of 1404605 shares changing hands. The stock had previously closed at $82.85.

The company reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.07. The company had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.83 billion. Howmet Aerospace had a net margin of 12.53% and a return on equity of 21.33%. The firm’s revenue for the quarter was up 14.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.44 earnings per share.

Howmet Aerospace Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 26th. Investors of record on Friday, August 9th will be given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 0.34%. This is a positive change from Howmet Aerospace’s previous quarterly dividend of $0.05. Howmet Aerospace’s dividend payout ratio is presently 9.66%.

Analyst Ratings Changes

A number of brokerages have weighed in on HWM. KeyCorp increased their target price on shares of Howmet Aerospace from $70.00 to $90.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 28th. Robert W. Baird increased their target price on shares of Howmet Aerospace from $74.00 to $84.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. Royal Bank of Canada increased their target price on shares of Howmet Aerospace from $75.00 to $90.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. BTIG Research initiated coverage on shares of Howmet Aerospace in a research report on Wednesday, June 26th. They issued a “buy” rating and a $95.00 price objective for the company. Finally, Northcoast Research restated a “sell” rating and issued a $70.00 price objective on shares of Howmet Aerospace in a research report on Friday, June 14th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and fifteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $77.76.

Insider Activity at Howmet Aerospace

In other Howmet Aerospace news, EVP Neil Edward Marchuk sold 32,614 shares of Howmet Aerospace stock in a transaction that occurred on Monday, June 3rd. The shares were sold at an average price of $84.26, for a total transaction of $2,748,055.64. Following the transaction, the executive vice president now directly owns 217,687 shares of the company’s stock, valued at $18,342,306.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.12% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Cultivar Capital Inc. purchased a new position in shares of Howmet Aerospace during the second quarter worth approximately $26,000. Versant Capital Management Inc raised its stake in shares of Howmet Aerospace by 1,209.1% during the second quarter. Versant Capital Management Inc now owns 432 shares of the company’s stock worth $34,000 after acquiring an additional 399 shares in the last quarter. Whittier Trust Co. raised its stake in shares of Howmet Aerospace by 81.4% during the first quarter. Whittier Trust Co. now owns 508 shares of the company’s stock worth $35,000 after acquiring an additional 228 shares in the last quarter. AlphaCentric Advisors LLC bought a new position in shares of Howmet Aerospace in the second quarter worth approximately $36,000. Finally, West Oak Capital LLC bought a new position in shares of Howmet Aerospace in the second quarter worth approximately $39,000. 90.46% of the stock is owned by hedge funds and other institutional investors.

Howmet Aerospace Price Performance

The company has a quick ratio of 0.92, a current ratio of 1.97 and a debt-to-equity ratio of 0.86. The stock has a market cap of $38.06 billion, a P/E ratio of 44.21, a PEG ratio of 1.50 and a beta of 1.46. The firm’s fifty day moving average price is $81.20 and its 200-day moving average price is $71.18.

About Howmet Aerospace

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.