Insiders Have Been Buying Arconic Inc. (ARNC)

The surge in insider buying at Arconic Inc. (NYSE:ARNC) is picking up steam with the current sell/buy ratio now at 0. ARNC recorded 0 sales on the open market in the last three months. They sold nearly zero shares while purchases amounted to 16,339 shares that period. Looking even further back to 12 months, corporate insiders offloaded 815,922 shares when buyers snapped up 1,236,111 shares. The 12-month’s totals signify about a 0.66-to-1 sell/buy ratio.

Elliott Associates, L.P. gathered a total of 256 thousand shares of Arconic Inc. (ARNC) at average share price of $17.96. This insider trade in the company took place on 05/15/2018. The total for the purchase was set at $4.6 million. After this transaction, the 10% Owner account balance stood at 33.22 million shares. The stock grew 13.03 percent since that insider purchase. On 05/15/2018, Elliott International, L.P., 10% Owner, purchased 544 thousand shares at a price per share of $17.96. This added 9.77 million shares to the insider’s fortune and the stock saw a 13.03 percent rally in value since the news became public. This transaction left 35.29 million shares in the 10% Owner account.

On 05/03/2018, Director Schmidt Ulrich performed a purchase transaction worth $33.5 thousand. This purchase at $16.75 each has added 2 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 21.19 percent increase since the transaction was reported. The insider now is left with 12.85 thousand shares remaining in the account. Hess David P, who performs the Director job, bought 40.3 thousand shares for $999.44 thousand. The acquisition occurred on 02/08/2018 was priced at $24.8 per share. The share price plunged -18.15 percent since the reporting date. Hess David P now left with a stake of 130.54 thousand ARNC stock worth $2.68 million after the insider buying.

The 12-month median price target for Arconic Inc. (ARNC) assigned by the analysts stands at $24, which represents a return potential of 16.9 percent when compared to the closing price of the stock of $20.53 on Thursday, December 06. The lowest price target for the stock is $20 — slightly more than -2.58 percent from ARNC’s current share price. The stock will probably climb 13.25 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28-month high price target. This represents a whopping 36.39 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 44.37 on daily chart, which may remain a cause for concern. If the price breaks below $19.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.77 mark may result into a pull-back move towards $21.01 level. The stock is currently hovering around the first support level of $20.23. Below this, the next support is placed in the zone of $19.93. Till the time, the ARNC stock trades above this level, bulls have nothing to fear.

Shares of Arconic Inc. (ARNC) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry ARNC operates in has an average P/E of 26.77. Its P/E ratio went as low as 37.05X and as high as 37.05 over the 5-year span. Further, it is sporting a 0.71 on the Price-to-Sales ratio. Compare this with the industry average P/S of 40.92. 18.9 percent is the gross profit margin for Arconic Inc. and operating margin sits at 3.8 percent. Along with this, the net profit margin is -2.2 percent.

On 6th of December, Arconic Inc. (NYSE:ARNC) shares ended lower after a volatile session. The shares dropped -0.32 points or -1.53 percent at $20.53 with a heavy trade volume of 5.16 million shares. After opening the session at $20.38, the shares went as high as $20.71 and as low as $20.17, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.86 billion and now has 480.09 million shares outstanding. Arconic Inc. (ARNC) stock has lost -1.11 percent of market value in 21 trading days.

In last reported earnings results, ARNC earned $0.32 per share, better than the $0.3, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.52B, better than the $3.49B analysts expected. Earnings are estimated to increase by 112.5 percent this year, 20.67 percent next year and continue to increase by 20 percent annually for the next 5 years. Investors will get their next glimpse of ARNC’s Q4 earnings on January 29. Analysts are forecasting revenue to climb 4.4 percent to $3.42B in the next fiscal quarter, while earnings are seen soaring by nearly -3.23 percent to $0.3 per share. History has shown that shares in Arconic Inc. have gone down on 5 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings.

ARNC stock has a trailing 3-year beta of 1.21, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.1 a share in the trailing twelve months. The stock’s value has fallen -24.66 percent year to date (YTD) against a decline of -15.27 percent in 12 month’s time. The company’s shares still trade -34.14 percent away from its 1-year high of $31.17 and 24.65 percent up from 52-week low of $16.47. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.