Arconic (ARNC) Downgraded to “Sell” at Zacks Investment Research
Arconic (NYSE:ARNC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “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.”
Other equities analysts have also recently issued reports about the stock. Seaport Global Securities reaffirmed a “buy” rating and set a $29.00 price target (up from $27.00) on shares of Arconic in a research note on Tuesday, September 26th. Vetr raised shares of Arconic from a “hold” rating to a “buy” rating and set a $27.97 price target on the stock in a research note on Tuesday, October 17th. Deutsche Bank set a $31.00 price target on shares of Arconic and gave the stock a “buy” rating in a research note on Tuesday, October 24th. Longbow Research raised shares of Arconic from a “neutral” rating to a “buy” rating and set a $34.00 price objective on the stock in a research note on Tuesday, August 22nd. Finally, Cowen reissued a “hold” rating and issued a $25.00 price objective on shares of Arconic in a research note on Tuesday, October 31st. One analyst has rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $28.75.
Arconic (NYSE:ARNC) last announced its quarterly earnings data on Monday, October 23rd. The basic materials company reported $0.25 EPS for the quarter, missing the Zacks’ consensus estimate of $0.27 by ($0.02). Arconic had a positive return on equity of 9.71% and a negative net margin of 4.70%. The firm had revenue of $3.24 billion for the quarter, compared to analysts’ expectations of $3.09 billion. The business’s quarterly revenue was up 3.1% on a year-over-year basis. equities analysts anticipate that Arconic will post 1.16 EPS for the current year.
Several institutional investors have recently added to or reduced their stakes in ARNC. Fiduciary Trust Co. purchased a new position in shares of Arconic during the 2nd quarter worth about $111,000. Capstone Investment Advisors Netherlands B.V. lifted its holdings in shares of Arconic by 47.9% during the 2nd quarter. Capstone Investment Advisors Netherlands B.V. now owns 4,950 shares of the basic materials company’s stock worth $112,000 after acquiring an additional 1,604 shares during the period. Huntington National Bank purchased a new position in shares of Arconic during the 3rd quarter worth about $132,000. National Planning Corp purchased a new position in shares of Arconic during the 3rd quarter worth about $206,000. Finally, Pitcairn Co. purchased a new position in shares of Arconic during the 3rd quarter worth about $209,000. 74.71% of the stock is currently owned by institutional investors.
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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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