The stock of Howmet Aerospace Inc (NYSE: HWM) has increased by 2.32 when compared to last closing price of 77.10.Despite this, the company has seen a gain of 18.81% in its stock price over the last five trading days. Seeking Alpha reported 2024-05-04 that Howmet Aerospace reports strong Q1 earnings, beating analyst estimates with 14% revenue growth and 21% increase in adjusted EBITDA. The company’s diversified end-market perspective and strength in aerospace segments contribute to its strong earnings. Challenges with the Boeing 737 MAX program impact Howmet Aerospace’s delivery assumptions, but the company sees upward pressure on its 2024 earnings.
Is It Worth Investing in Howmet Aerospace Inc (NYSE: HWM) Right Now?
Howmet Aerospace Inc (NYSE: HWM) has a higher price-to-earnings ratio of 38.09x compared to its average ratio, The 36-month beta value for HWM is at 1.46. Analysts have varying views on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for HWM is 403.67M, and currently, shorts hold a 1.96% of that float. The average trading volume for HWM on May 06, 2024 was 3.52M shares.
HWM’s Market Performance
The stock of Howmet Aerospace Inc (HWM) has seen a 18.81% increase in the past week, with a 20.39% rise in the past month, and a 36.68% gain in the past quarter. The volatility ratio for the week is 3.17%, and the volatility levels for the past 30 days are at 2.50% for HWM.. The simple moving average for the past 20 days is 20.10% for HWM’s stock, with a 44.12% simple moving average for the past 200 days.
Analysts’ Opinion of HWM
Many brokerage firms have already submitted their reports for HWM stocks, with RBC Capital Mkts repeating the rating for HWM by listing it as a “Outperform.” The predicted price for HWM in the upcoming period, according to RBC Capital Mkts is $75 based on the research report published on March 18, 2024 of the current year 2024.
Truist, on the other hand, stated in their research note that they expect to see HWM reach a price target of $74, previously predicting the price at $47. The rating they have provided for HWM stocks is “Buy” according to the report published on January 10th, 2024.
Bernstein gave a rating of “Outperform” to HWM, setting the target price at $67 in the report published on January 05th of the current year.
HWM Trading at 18.86% from the 50-Day Moving Average
After a stumble in the market that brought HWM to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.30% of gains for the given period.
Volatility was left at 2.50%, however, over the last 30 days, the volatility rate increased by 3.17%, as shares surge +17.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +21.26% upper at present.
During the last 5 trading sessions, HWM rose by +18.81%, which changed the moving average for the period of 200-days by +58.60% in comparison to the 20-day moving average, which settled at $66.28. In addition, Howmet Aerospace Inc saw 45.77% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at HWM starting from Marchuk Neil Edward, who sale 45,000 shares at the price of $67.44 back on Mar 04 ’24. After this action, Marchuk Neil Edward now owns 229,568 shares of Howmet Aerospace Inc, valued at $3,034,872 using the latest closing price.
Marchuk Neil Edward, the EVP, HR of Howmet Aerospace Inc, sale 80,000 shares at $50.06 during a trade that took place back on Aug 09 ’23, which means that Marchuk Neil Edward is holding 261,291 shares at $4,004,464 based on the most recent closing price.
Stock Fundamentals for HWM
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.28 for the gross margin
The net margin for Howmet Aerospace Inc stands at 0.13. The total capital return value is set at 0.15. Equity return is now at value 21.92, with 8.36 for asset returns.
Based on Howmet Aerospace Inc (HWM), the company’s capital structure generated 0.48 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 0.91. The interest coverage ratio of the stock is 6.13.
Currently, EBITDA for the company is 1.48 billion with net debt to EBITDA at 2.13. When we switch over and look at the enterprise to sales, we see a ratio of 5.18. The receivables turnover for the company is 8.54for trailing twelve months and the total asset turnover is 0.66. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.97.
Conclusion
In conclusion, Howmet Aerospace Inc (HWM) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
