Howmet Aerospace Inc. (NYSE: HWM) stock fell -2.48% on Friday to $33.43 against a previous-day closing price of $34.28. With 2.75 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.8 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $34.86 whereas the lowest price it dropped to was $33.43. The 52-week range on HWM shows that it touched its highest point at $38.99 and its lowest point at $27.41 during that stretch. It currently has a 1-year price target of $42.83. With its current market cap of 14.17 billion, HWM has annualized dividend of $0.08 while the current yield stands at 0.24%. Beta for the stock currently stands at 1.60.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HWM was down-trending over the past week, with a drop of -5.35%, but this was down by -8.36% over a month. Three-month performance surged to 6.36% while six-month performance fell -10.42%. The stock gained 9.25% in the past year, while it has gained 5.03% so far this year. A look at the trailing 12-month EPS for HWM yields 0.89 with Next year EPS estimates of 1.84. For the next quarter, that number is 0.36. This implies an EPS growth rate of 23.60% for this year and 29.92% for next year. EPS is expected to grow by 28.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.40%.
Float and Shares Shorts:
At present, 417.00 million HWM shares are outstanding with a float of 411.70 million shares on hand for trading. On Aug 30, 2022, short shares totaled 7.63 million, which was 1.84% higher than short shares on Jul 28, 2022. In addition to Mr. John C. Plant FCA as the firm’s Exec. Chairman & CEO, Mr. Kenneth J. Giacobbe serves as its Exec. VP & CFO.
Through their ownership of 91.99% of HWM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.75% of HWM, in contrast to 41.20% held by mutual funds. Shares owned by individuals account for 0.95%. As the largest shareholder in HWM with 10.06% of the stake, The Vanguard Group, Inc. holds 41,783,188 shares worth 41,783,188. A second-largest stockholder of HWM, Elliott Investment Management LP, holds 36,581,922 shares, controlling over 8.81% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in HWM, holding 22,491,908 shares or 5.41% stake. With a 2.68% stake in HWM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 11,150,341 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.29% of HWM stock, is the second-largest Mutual Fund holder. It holds 9,521,814 shares valued at 337.36 million. Vanguard 500 Index Fund holds 2.02% of the stake in HWM, owning 8,392,852 shares worth 297.36 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, HWM reported revenue of $1.39B and operating income of $247.00M. Over the past year, revenue came in at $5.29B while operating income stood at $823.00M. It generated $147.00M net income for the quarter, which came to $382.00M over the last twelve months. The EBITDA in the recently reported quarter was $306.00M and diluted EPS was $0.35. EBITDA for the full year was $1.15B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HWM since 14 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HWM analysts setting a high price target of $46.00 and a low target of $40.00, the average target price over the next 12 months is $42.85. Based on these targets, HWM could surge 37.6% to reach the target high and rise by 19.65% to reach the target low. Reaching the average price target will result in a growth of 28.18% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HWM will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $1.45 being high and $1.39 being low. For HWM, this leads to a yearly average estimate of $1.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Howmet Aerospace Inc. surprised analysts by $0.02 when it reported $0.35 EPS against a consensus estimate of $0.33. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.39 and the low estimate is $0.34. The average estimate for the next quarter is thus $0.36.
Summary of Insider Activity:
Insiders traded HWM stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 2,049 shares were bought while 2,637 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 929,530 while 350,373 shares were sold.