Zacks Investment Research upgraded shares of Arconic (NYSE:ARNC) from a sell rating to a hold rating in a report published on Monday morning.
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.”
ARNC has been the subject of several other research reports. Longbow Research raised shares of Arconic from a neutral rating to a buy rating and reduced their price objective for the stock from $23.25 to $18.26 in a report on Thursday, December 20th. ValuEngine downgraded shares of Arconic from a sell rating to a strong sell rating in a report on Tuesday, January 22nd. JPMorgan Chase & Co. downgraded shares of Arconic from an overweight rating to a neutral rating and cut their price target for the company from $24.00 to $22.00 in a report on Monday, January 14th. Jefferies Financial Group set a $25.00 price target on shares of Arconic and gave the company a buy rating in a report on Wednesday, October 31st. Finally, Cowen reissued a hold rating and issued a $20.00 price target on shares of Arconic in a report on Friday. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $23.48.
Arconic (NYSE:ARNC) last released its quarterly earnings results on Friday, February 8th. The basic materials company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.30 by $0.03. The business had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.47 billion. Arconic had a net margin of 4.58% and a return on equity of 12.91%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.31 earnings per share. Equities research analysts predict that Arconic will post 1.59 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, February 25th. Shareholders of record on Friday, February 8th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 1.37%. The ex-dividend date is Thursday, February 7th. Arconic’s payout ratio is 17.65%.
A number of hedge funds and other institutional investors have recently modified their holdings of ARNC. Nissay Asset Management Corp Japan ADV lifted its stake in Arconic by 3.2% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 37,679 shares of the basic materials company’s stock valued at $635,000 after buying an additional 1,186 shares in the last quarter. Advisor Group Inc. lifted its stake in Arconic by 7.8% during the fourth quarter. Advisor Group Inc. now owns 18,474 shares of the basic materials company’s stock valued at $311,000 after buying an additional 1,331 shares in the last quarter. Creative Planning lifted its stake in Arconic by 15.3% during the fourth quarter. Creative Planning now owns 12,890 shares of the basic materials company’s stock valued at $217,000 after buying an additional 1,713 shares in the last quarter. Guardian Investment Management lifted its stake in Arconic by 7.5% during the third quarter. Guardian Investment Management now owns 33,687 shares of the basic materials company’s stock valued at $742,000 after buying an additional 2,355 shares in the last quarter. Finally, Alambic Investment Management L.P. lifted its stake in Arconic by 11.3% during the third quarter. Alambic Investment Management L.P. now owns 26,500 shares of the basic materials company’s stock valued at $583,000 after buying an additional 2,700 shares in the last quarter. 83.82% of the stock is owned by institutional investors.
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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