KeyBanc Capital Markets has recently reduced Howmet Aerospace Inc (HWM) stock to Sector Weight rating, as announced on October 24, 2024, according to Finviz. Earlier, on October 8, 2024, Susquehanna had initiated the stock to Positive, setting a price target of $120. BTIG Research also initiated Buy rating with a price target of $95. Additionally, RBC Capital Mkts initiated Outperform rating on March 18, 2024, with a target price of $75. Truist analysts, in their report published on January 10, 2024, also raised Buy rating and set a price target of $47 for Howmet Aerospace Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Howmet Aerospace Inc (HWM) Stock Trading Recap
On Friday, Howmet Aerospace Inc (HWM) stock saw a modest uptick, ending the day at $119.18 which represents a slight increase of $2.48 or 2.13% from the prior close of $116.7. The stock opened at $118 and touched a low of $117.38 during the day, reaching a high of $118.9. The volume of shares traded was 1.35 million falling short of the average volume of 2.37 million.
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HWM Stock Performance and Moving Averages
In recent trading, Howmet Aerospace Inc (HWM) stock price has shown some volatility, fluctuating 1.88% over the last five trades and 17.84% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 40.79%, and it has gained 23.30% in the previous three months. Currently, HWM is trading at 5.35%, 12.06%, and 38.85% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, HWM, a Industrials sector stock, is trading -0.08% below its 52-week high but remains 131.55% above its 52-week low. The Average True Range (ATR) (14 days) of 2.67 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Howmet Aerospace Inc’s Profitability and Valuation Ratios
Howmet Aerospace Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 21.57% and a profit margin of 14.79%, with a gross margin of 40.79%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Howmet Aerospace Inc’s market capitalization stands at $48.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 45.63, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 37.54. Additionally, the Price-to-Sales Ratio is 6.66, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 10.91, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.10% of Howmet Aerospace Inc (HWM)’s shares, while financial institutions hold 91.48%.
Notable insider trades include Marchuk Neil Edward, EVP, HR at Howmet Aerospace Inc (HWM), who sold 70637 shares on Aug 23 ’24, at $96.94 each, totaling $6.85 million. On Aug 22 ’24, Giacobbe Ken, EVP and CFO, sold 154909 shares for $96.58 each, amounting to $14.96 million. Additionally, on Jun 03 ’24, Marchuk Neil Edward sold 32614 shares at $84.26 each, generating $2.75 million.
