Howmet Aerospace Inc. (NYSE:HWM) finished Thursday with a subtraction of -$0.18 to close at $47.94, a downside of -0.37 percent. An average of 1,790,549 shares of common stock have been traded in the last five days. There was a fall of -$0.96 in the past week, and it reached a new high 29 times over the past 12 months. The last 20 days have seen an average of 2,834,687 shares traded, while the 50-day average volume stands at 2,606,071.
HWM stock has decreased by -4.46% in the last month. The company shares reached their 1-month lowest point of $47.54 on 08/03/23. With the stock rallying to its 52-week high on 07/12/23, shares of the company touched a low of $30.59 and a high of $51.34 in 52 weeks. It has reached a new high 26 times so far this year and achieved 21.64% or $8.41 in price. In spite of this, the price is down -6.62% from the 52-week high.
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Insider Transactions
HWM stock investors should be aware that Howmet Aerospace Inc. (HWM) stock had its last reported insider trading activity 16 days ago on Aug 09. In this transaction, the insider spent $4,004,464. EVP, HR, Marchuk Neil Edward, disposed of 57,000 shares at a price of $43.61 on Mar 06. The insider now owns more than $2,485,576 worth of shares. Prior to that, Vice President and Controller Shultz Barbara Lou went on to Sale 4,627 shares at $42.16 each on Feb 23. An amount of $195,078 was transacted.
Valuation Metrics
Howmet Aerospace Inc. (HWM) has a trailing price-to-earnings (P/E) ratio of 37.81. The stock’s beta is 1.43. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.18, the price-to-book (PB) ratio at 5.32, and the price-to-cash flow ratio at 33.95.
The company has a payout ratio of 10.90%. The company’s most recent quarterly dividend payment was $0.04 a share, without any change from last year. Its latest increase dividend $0.02 reported on Thursday September 29 2022.
Financial Health
The quick ratio of Howmet Aerospace Inc. for the three months ended June 29 was 1.00, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.07 and a total debt to equity ratio of 1.07 for the quarter ending June 29. Howmet Aerospace Inc.’s EBITDA margin for the year ending June 29 is 22.94%, while its operating margin for the same period stands at 15.40%. Its gross profit as reported stood at $1.56 billion compared to revenue of $5.66 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Howmet Aerospace Inc.’s return on assets was 5.20%.
Earnings Surprise
For the three-month period that ended June 29, Howmet Aerospace Inc. had $3.99 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $193.0 million in the quarter, while revenues were grew 23.83%. The analyst consensus anticipated Howmet Aerospace Inc.’s latest quarter earnings to come in at $0.43 per share, but it turned out to be $0.44, a 2.30% surprise. For the quarter, EBITDA amounted to $352.0 million. Shareholders own equity worth $412.21 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Howmet Aerospace Inc. (HWM) price momentum. RSI 9-day as of the close on 24 August was 34.13%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.91%.
As of today, HWM’s price is $48.47 -1.97% or -$0.96 from its 5-day moving average. HWM is currently trading -5.18% lower than its 20-day SMA and +11.29% higher than its 100-day SMA. However, the stock’s current price level is +4.64% above the SMA50 and +30.62% above the SMA200.
The stochastic %K and %D were 17.57% and 27.74%, respectively, and the average true range (ATR) was 0.82. With the 14-day stochastic at 5.33% and the average true range at 0.84, the RSI (14) stands at 40.11%. The stock has reached -0.23 on the 9-day MACD Oscillator while the 14-day reading was at -0.65.
Analyst Ratings
Robert W. Baird launched coverage on Howmet Aerospace Inc. (NYSE: HWM) in its analyst report released on July 25, 2023. The firm assigned the stock an Outperform rating. The consensus rating for Howmet Aerospace Inc. (HWM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HWM, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.
What is HWM’s price target for the next 12 months?
Analysts predict a range of price targets between $47.00 and $61.00, with a median target of $56.00. Taking a look at these predictions, the average price target given by analysts for Howmet Aerospace Inc. (HWM) stock is $55.81.
