Arconic (ARNC) Upgraded to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Arconic (NYSE:ARNC) from a sell rating to a hold rating in a report released 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.”
Several other brokerages have also recently commented on ARNC. TheStreet upgraded shares of Arconic from a d+ rating to a c- rating in a research note on Monday, October 15th. Jefferies Financial Group set a $25.00 target price on shares of Arconic and gave the company a buy rating in a report on Wednesday, October 31st. JPMorgan Chase & Co. downgraded shares of Arconic from an overweight rating to a neutral rating and dropped their target price for the company from $24.00 to $22.00 in a report on Monday, January 14th. Longbow Research upgraded shares of Arconic from a neutral rating to a buy rating and dropped their target price for the company from $23.25 to $18.26 in a report on Thursday, December 20th. Finally, ValuEngine downgraded shares of Arconic from a sell rating to a strong sell rating in a report on Tuesday, January 22nd. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $23.48.
Arconic (NYSE:ARNC) last announced its quarterly earnings data on Friday, February 8th. The basic materials company reported $0.33 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.30 by $0.03. Arconic had a net margin of 4.58% and a return on equity of 12.91%. The firm had revenue of $3.47 billion during the quarter, compared to analysts’ expectations of $3.47 billion. During the same quarter last year, the business earned $0.31 earnings per share. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. As a group, research analysts anticipate that Arconic will post 1.59 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, February 25th. Investors of record on Friday, February 8th will be issued a $0.06 dividend. The ex-dividend date is Thursday, February 7th. This represents a $0.24 dividend on an annualized basis and a yield of 1.37%. Arconic’s payout ratio is 17.65%.
Hedge funds have recently made changes to their positions in the business. Virtu Financial LLC lifted its position in Arconic by 340.0% during the fourth quarter. Virtu Financial LLC now owns 74,316 shares of the basic materials company’s stock valued at $1,253,000 after buying an additional 57,427 shares in the last quarter. Trinity Street Asset Management LLP lifted its position in Arconic by 0.7% during the fourth quarter. Trinity Street Asset Management LLP now owns 1,272,609 shares of the basic materials company’s stock valued at $21,456,000 after buying an additional 8,874 shares in the last quarter. Federated Investors Inc. PA lifted its position in Arconic by 5,491.2% during the third quarter. Federated Investors Inc. PA now owns 302,315 shares of the basic materials company’s stock valued at $6,654,000 after buying an additional 296,908 shares in the last quarter. BP PLC acquired a new position in Arconic during the third quarter valued at approximately $1,056,000. Finally, Contravisory Investment Management Inc. acquired a new position in Arconic during the fourth quarter valued at approximately $242,000. 83.82% of the stock is currently owned by hedge funds and other institutional investors.
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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