Howmet Aerospace Inc (NYSE: HWM) has seen a decline in its stock price by -0.58 in relation to its previous close of 118.38. However, the company has experienced a -0.63% decline in its stock price over the last five trading sessions. zacks.com reported 2024-11-25 that Investors with an interest in Aerospace – Defense stocks have likely encountered both Leidos (LDOS) and Howmet (HWM). But which of these two companies is the best option for those looking for undervalued stocks?
Is It Worth Investing in Howmet Aerospace Inc (NYSE: HWM) Right Now?
The price-to-earnings ratio for Howmet Aerospace Inc (NYSE: HWM) is 45.06x, which is above its average ratio. Moreover, the 36-month beta value for HWM is 1.49. Analysts have varying opinions on the stock, with 15 analysts rating it as a “buy,” 6 as “overweight,” 2 as “hold,” and 1 as “sell.”
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The public float for HWM is 401.78M and currently, short sellers hold a 1.94% of that float. On December 03, 2024, HWM’s average trading volume was 2.36M shares.
HWM’s Market Performance
HWM’s stock has seen a -0.63% decrease for the week, with a 18.02% rise in the past month and a 26.52% gain in the past quarter. The volatility ratio for the week is 1.65%, and the volatility levels for the past 30 days are at 2.45% for Howmet Aerospace Inc The simple moving average for the last 20 days is 3.26% for HWM stock, with a simple moving average of 36.68% for the last 200 days.
Analysts’ Opinion of HWM
Susquehanna, on the other hand, stated in their research note that they expect to see HWM reach a price target of $120. The rating they have provided for HWM stocks is “Positive” according to the report published on October 08th, 2024.
BTIG Research gave a rating of “Buy” to HWM, setting the target price at $95 in the report published on June 26th of the current year.
HWM Trading at 10.26% 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 unable to rebound, for now settling with -1.33% of loss for the given period.
Volatility was left at 2.45%, however, over the last 30 days, the volatility rate increased by 1.65%, as shares surge +17.65% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +20.77% upper at present.
During the last 5 trading sessions, HWM fell by -0.63%, which changed the moving average for the period of 200-days by +86.01% in comparison to the 20-day moving average, which settled at $113.97. In addition, Howmet Aerospace Inc saw 117.46% 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 70,637 shares at the price of $96.94 back on Aug 23 ’24. After this action, Marchuk Neil Edward now owns 92,687 shares of Howmet Aerospace Inc, valued at $6,847,749 using the latest closing price.
Giacobbe Ken, the EVP and CFO of Howmet Aerospace Inc, sale 154,909 shares at $96.58 during a trade that took place back on Aug 22 ’24, which means that Giacobbe Ken is holding 155,135 shares at $14,960,414 based on the most recent closing price.
Stock Fundamentals for HWM
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.29 for the gross margin
The net margin for Howmet Aerospace Inc stands at 0.15. The total capital return value is set at 0.17. Equity return is now at value 25.72, with 10.39 for asset returns.
Based on Howmet Aerospace Inc (HWM), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 0.38. The debt to equity ratio resting at 0.75. The interest coverage ratio of the stock is 7.92.
Currently, EBITDA for the company is 1.47 billion with net debt to EBITDA at 1.69. When we switch over and look at the enterprise to sales, we see a ratio of 6.98. The receivables turnover for the company is 9.38for trailing twelve months and the total asset turnover is 0.69. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.24.
Conclusion
To wrap up, the performance of Howmet Aerospace Inc (HWM) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
