Think Twice Before Hating Arconic Inc. (ARNC)

Arconic Inc. (ARNC) will probably climb 18.97 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28price as 12-month high target. This represents a whopping 42.78 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $24, which represents a return potential of 22.39 percent when compared to the closing price of the stock of $19.61 on Thursday, January 10. The lowest price target for the stock is $20 — slightly more than 1.99 percent from ARNC’s current share price.

The stock is currently hovering around the first support level of $19.13. Below this, the next support is placed in the zone of $18.66. Till the time, the ARNC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.06 on daily chart, which may remain a cause for concern. If the price breaks below $18.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.9 mark may result into a pull-back move towards $20.2 level.

On 10th of January, Arconic Inc. (NYSE:ARNC) shares ended higher after a volatile session. The shares accumulated 0.09 points or 0.46 percent at $19.61 with a light trade volume of 3.834 million shares. After opening the session at $19.43, the shares went as high as $19.72 and as low as $18.95, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $9.28 billion and now has 473.05 million shares outstanding. Arconic Inc. (ARNC) stock has lost -1.41 percent of market value in 21 trading days.

ARNC stock has a trailing 3-year beta of 1.39, 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 surged 16.31 percent year to date (YTD) against a decline of -34.22 percent in 12 month’s time. The company’s shares still trade -37.09 percent away from its 1-year high of $31.17 and 25.46 percent up from 52-week low of $15.63. 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.

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 18.46. Its P/E ratio went as low as 84.76X and as high as 84.76 over the 5-year span. Further, it is sporting a 0.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 21.11. 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.

Let’s take a look at some insider activity at Arconic Inc. (NYSE:ARNC) and see the pattern. The earliest insider trade took place on 05/15/2018. Elliott Associates, L.P. gathered a total of 256 thousand shares of company at average share price of $17.96. 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 9.19 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 9.19 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 17.07 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 -20.93 percent since the reporting date. Hess David P now left with a stake of 130.54 thousand ARNC stock worth $2.56 million after the insider buying.