Zacks Investment Research upgraded shares of Arconic (NYSE:ARNC) from a hold rating to a buy rating in a report issued on Monday. Zacks Investment Research currently has $21.00 price target on the basic materials company’s stock.
According to Zacks, “Annual estimates for Arconic have been going up over the past month. The company is well placed to gain from strong demand trends in aerospace and automotive markets in 2019. Higher volumes across these markets should provide support to the company’s top line. The company should also benefit from major contract wins in aerospace. Arconic is also focusing on cost reduction and operational improvements across its businesses, which should drive its earnings in 2019.”
Other research analysts also recently issued research reports about the stock. Cowen reissued a hold rating and set a $20.00 target price on shares of Arconic in a research report on Friday, February 8th. ValuEngine downgraded shares of Arconic from a sell rating to a strong sell rating in a research report on Tuesday, January 22nd. JPMorgan Chase & Co. downgraded shares of Arconic from an overweight rating to a neutral rating and cut their target price for the company from $24.00 to $22.00 in a research report on Monday, January 14th. Finally, Longbow Research raised shares of Arconic from a neutral rating to a buy rating and cut their target price for the company from $23.25 to $18.26 in a research report on Thursday, December 20th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $23.03.
Arconic (NYSE:ARNC) last posted its earnings results on Friday, February 8th. The basic materials company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.30 by $0.03. The business had revenue of $3.47 billion for the quarter, compared to the consensus estimate of $3.47 billion. Arconic had a net margin of 4.58% and a return on equity of 12.73%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.31 EPS. On average, equities research analysts expect that Arconic will post 1.64 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Saturday, May 25th. Shareholders of record on Friday, May 3rd will be given a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a yield of 0.42%. The ex-dividend date of this dividend is Thursday, May 2nd. Arconic’s dividend payout ratio (DPR) is 17.65%.
In other news, Chairman John C. Plant purchased 105,000 shares of the stock in a transaction dated Tuesday, March 12th. The shares were acquired at an average cost of $18.67 per share, for a total transaction of $1,960,350.00. Following the acquisition, the chairman now owns 28,282 shares of the company’s stock, valued at $528,024.94. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO John C. Plant purchased 35,000 shares of the stock in a transaction dated Tuesday, March 5th. The stock was purchased at an average price of $18.65 per share, for a total transaction of $652,750.00. The disclosure for this purchase can be found here. Insiders bought a total of 280,000 shares of company stock worth $5,192,250 over the last 90 days. Company insiders own 0.17% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Enlightenment Research LLC bought a new stake in shares of Arconic in the 4th quarter valued at about $67,000. We Are One Seven LLC bought a new stake in shares of Arconic in the 4th quarter valued at about $109,000. Oregon Public Employees Retirement Fund boosted its holdings in shares of Arconic by 1,764.5% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 2,173,996 shares of the basic materials company’s stock valued at $129,000 after buying an additional 2,057,395 shares in the last quarter. Cerebellum GP LLC bought a new stake in shares of Arconic in the 4th quarter valued at about $135,000. Finally, Municipal Employees Retirement System of Michigan bought a new stake in shares of Arconic in the 4th quarter valued at about $188,000. Institutional investors and hedge funds own 81.73% of the company’s stock.
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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