Arconic Corporation (NYSE: ARNC) Seen Running Too Hot, Let’s Look At This More Closely

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    Orbis Investment Management Ltd. recently announced the acquisition of new stake in Arconic Corporation (NYSE:ARNC). The institutional investor has increased its shareholding in the Industrials company by 130.68% to 14.34 million shares with purchase of 8.12 million shares. This fresh investment now brings its stake to 13.15% valued currently at $199.72 million. In addition, The Vanguard Group, Inc. raised its holdings by 10.42 million to 10.42 million shares.

    With over 0.48 million Arconic Corporation (ARNC) shares trading Friday and a closing price of $16.35 on the day, the dollar volume was approximately $7.86 million. The shares have shown a positive weekly performance of 0.62% and its price on 07/24/20 lost nearly -0.12%. Currently, there are 112.28M common shares owned by the public and among those 108.24M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 1 analysts who have offered their price forecasts for ARNC have a consensus price objective of $22.00. The analysts have set the share’s price value over the next 12 months at a high of $22.00 and a low of $22.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Arconic Corporation stock is 2.00 for the next 12 months. The average price target is 25.68% above its last price level and an upside to the estimated low will see the stock gain 25.68% over that period. But an upside of 25.68% will see the stock hit the forecast high price target while mean target price for the stock is $22.00.

    Insiders at the company have transacted a total of 1 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 0 of these insider trades were purchases, accounting for 0 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 109,021,376 shares.

    The top 3 mutual fund holders in Arconic Corporation are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and FPA Crescent Fund. iShares Core S&P Small Cap ETF owns 5.99 million shares of the company’s stock, all valued at over $83.43 million. Vanguard Total Stock Market Index bought 0.31 million shares to see its total holdings expand to 3.13 million shares valued at over $43.53 million and representing 2.87% of the shares outstanding. FPA Crescent Fund bought 2.37 million shares to bring its total holdings to over 2.37 million shares at a value of $33.0 million. FPA Crescent Fund now owns shares totaling to 2.17% of the shares outstanding.

    Shares of Arconic Corporation (NYSE: ARNC) opened at $16.23, down -$0.14 from a prior closing price of $16.37. However, the script later closed the day at $16.35, down -0.12%. The company’s stock has a 5-day price change of 0.62% and 103.36% over the past three months. It has a 12-month low price of $5.80 and touched a high of $19.69 over the same period. Currently, 0.48 million shares have been traded, compared to an average intraday trading volume of 2.00 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 8.53%, 12.01%, and 31.49% respectively.

    Institutional ownership of Arconic Corporation (NYSE: ARNC) shares accounts for 56.80% of the company’s 112.28M shares outstanding. Mutual fund holders own 33.44%, while other institutional holders and individual stakeholders account for 65.49% and 0.00% respectively.

    It has a market capitalization of $1.84B. The stock’s trailing 12-month PE ratio is 7.32, while the earnings-per-share (ttm) stands at $2.23. The company has a PEG of 0.58 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 0.88. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.66% over the week and 6.02% over the month.

    Analysts forecast that Arconic Corporation (ARNC) will achieve an EPS of -$0.16 for the current quarter, $0.07 for the next quarter and $1.7 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.16 while analysts give the company a high EPS estimate of -$0.16. Earnings per share for the fiscal year are expected to increase by 31.80%, and 95.62% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 1 brokerage firm advisors rate Arconic Corporation (ARNC) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 0 of the 1 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the ARNC, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on May 20, 2020, with the firm’s price target at $22. Barclays coverage for the Arconic Corporation (ARNC) stock in a research note released on March 20, 2020 offered a Equal Weight rating with a price target of $17. Argus was of a view on February 18, 2020 that the stock is Buy, while Longbow gave the stock Underperform rating on January 22, 2020, issuing a price target of $24. The Benchmark Company on their part issued Hold rating on January 16, 2020.

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