Zacks Investment Research upgraded shares of Arconic Inc (NASDAQ:ARNC) from a sell rating to a hold rating in a research report released on Friday.
According to Zacks, “Arconic saw lower profits in the third quarter of 2017, hurt by sizable charges and weak performance of its GRP division. Adjusted earnings missed the Zacks Consensus Estimate while sales beat. Arconic has underperformed the industry it belongs to over the past six months. The company faces earnings headwinds stemming from hefty charges related to LIFO method of accounting. It is also exposed to pricing pressure in GRP and EPS segments and weakness in certain end-markets including the North American heavy-duty truck & trailer and industrial gas turbine. We are also concerned about its high balance sheet leverage. However, Arconic is well placed to gain from strong demand trends in the automotive market. It should also benefit from its cost-cutting and productivity actions. Major contract wins in aerospace will also support its results.”
Several other research firms have also commented on ARNC. Vetr lowered Arconic from a strong-buy rating to a hold rating and set a $27.98 price objective on the stock. in a research report on Monday, October 9th. Cowen and Company reissued a hold rating and issued a $25.00 price objective on shares of Arconic in a research report on Thursday, October 19th. BidaskClub upgraded Arconic from a sell rating to a hold rating in a research note on Friday, September 22nd. Seaport Global Securities restated a buy rating and set a $29.00 target price (up from $27.00) on shares of Arconic in a research note on Tuesday, September 26th. Finally, Longbow Research upgraded Arconic from a neutral rating to a buy rating and set a $34.00 target price for the company in a research note on Tuesday, August 22nd. Five equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $28.33.
Arconic (NASDAQ ARNC) traded down $0.45 during trading hours on Friday, reaching $23.79. The company’s stock had a trading volume of 2,834,900 shares, compared to its average volume of 4,213,995. Arconic has a one year low of $18.47 and a one year high of $30.69.
Arconic (NASDAQ:ARNC) last released its quarterly earnings data on Monday, October 23rd. The basic materials company reported $0.25 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.02). Arconic had a net margin of 3.68% and a return on equity of 7.07%. The company had revenue of $3.24 billion during the quarter, compared to analysts’ expectations of $3.09 billion. Arconic’s revenue was up 3.1% compared to the same quarter last year.
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The company also recently declared a quarterly dividend, which will be paid on Saturday, November 25th. Investors of record on Friday, November 3rd will be paid a $0.06 dividend. The ex-dividend date of this dividend is Thursday, November 2nd. This represents a $0.24 dividend on an annualized basis and a yield of 1.01%. Arconic’s dividend payout ratio (DPR) is -11.21%.
A number of large investors have recently bought and sold shares of ARNC. Harris Associates L P grew its stake in Arconic by 151.0% in the second quarter. Harris Associates L P now owns 13,439,188 shares of the basic materials company’s stock worth $304,398,000 after purchasing an additional 8,084,588 shares in the last quarter. Orbis Allan Gray Ltd lifted its holdings in Arconic by 50.9% in the second quarter. Orbis Allan Gray Ltd now owns 22,812,295 shares of the basic materials company’s stock worth $517,132,000 after acquiring an additional 7,696,839 shares during the last quarter. Permian Investment Partners LP bought a new position in Arconic in the second quarter worth about $34,975,000. Dimensional Fund Advisors LP lifted its holdings in Arconic by 33.8% in the second quarter. Dimensional Fund Advisors LP now owns 5,813,376 shares of the basic materials company’s stock worth $131,682,000 after acquiring an additional 1,468,173 shares during the last quarter. Finally, Prudential Financial Inc. lifted its holdings in Arconic by 194.2% in the second quarter. Prudential Financial Inc. now owns 1,859,878 shares of the basic materials company’s stock worth $42,126,000 after acquiring an additional 1,227,740 shares during the last quarter.
Arconic Company Profile
Arconic Inc, formerly Alcoa Inc, is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging.
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