For Arconic Corporation [ARNC], Credit Suisse sees a rise to $22. What next?

Arconic Corporation [NYSE: ARNC] stock went on an upward path that rose over 12.49% on Wednesday, amounting to a one-week price increase of more than 19.76%. The company report on August 4, 2020 that Arconic Reports Second Quarter 2020 Results.

Second Quarter 2020 Key Results.

Arconic Corporation (NYSE: ARNC) (“Arconic” or “the Company”) today announced second quarter 2020 results, with reported revenue of $1.2 billion, down 38% year over year on weaker volumes across all segments and most end markets primarily due to the impact of the COVID-19 pandemic. The Company reported a net loss of $92 million, or $0.84 per share, in second quarter 2020 compared with net income of $5 million, or $0.04 per share, in second quarter 2019. The second quarter 2020 net loss included $76 million of after-tax special items primarily related to a non-cash charge to annuitize U.K. pension obligations, debt issuance costs, plant closure costs, and the previously announced restructuring. Second quarter 2020 Adjusted EBITDA was $94 million compared with $211 million in second quarter 2019 primarily as a result of lower volumes due to the impact of the COVID-19 pandemic partly mitigated by cost reduction actions.

The one-year Arconic Corporation stock forecast points to a potential upside of 10.73. The average equity rating for ARNC stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $2.14 billion, with 108.99 million shares outstanding and 108.24 million shares in the current float. Compared to the average trading volume of 1.77M shares, ARNC stock reached a trading volume of 1779147 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Arconic Corporation [ARNC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARNC shares is $22.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARNC stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Credit Suisse have made an estimate for Arconic Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 20, 2020. The new note on the price target was released on March 20, 2020, representing the official price target for Arconic Corporation stock. Previously, the target price had yet another raise to $38, while Argus analysts kept a Buy rating on ARNC stock.

The Average True Range (ATR) for Arconic Corporation is set at 1.02, with the Price to Sales ratio for ARNC stock in the period of the last 12 months amounting to 0.30. The Price to Book ratio for the last quarter was 1.33, with the Price to Cash per share for the same quarter was set at 5.83.

ARNC Stock Performance Analysis:

Arconic Corporation [ARNC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 19.76.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARNC stock in for the last two-week period is set at 69.79, with the RSI for the last a single of trading hit 80.08, and the three-weeks RSI is set at 68.88 for Arconic Corporation [ARNC]. The present Moving Average for the last 50 days of trading for this stock 15.84, while it was recorded at 17.39 for the last single week of trading.

Insight into Arconic Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Arconic Corporation [ARNC] shares currently have an operating margin of +5.00 and a Gross Margin at +10.38. Arconic Corporation’s Net Margin is presently recorded at +3.09.

Return on Total Capital for ARNC is now 11.83, given the latest momentum, and Return on Invested Capital for the company is 7.38. Return on Equity for this stock inclined to 8.37, with Return on Assets sitting at 4.72. When it comes to the capital structure of this company, Arconic Corporation [ARNC] has a Total Debt to Total Equity ratio set at 13.96. Additionally, ARNC Total Debt to Total Capital is recorded at 12.25, with Total Debt to Total Assets ending up at 7.99. Long-Term Debt to Equity for the company is recorded at 12.75, with the Long-Term Debt to Total Capital now at 11.19.

Reflecting on the efficiency of the workforce at the company, Arconic Corporation [ARNC] managed to generate an average of $14,610 per employee. Receivables Turnover for the company is 13.80 with a Total Asset Turnover recorded at a value of 1.53.Arconic Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 2.30.

ARNC Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARNC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Arconic Corporation go to 12.62%.

Arconic Corporation [ARNC] Insider Position Details

There are presently around $252 million, or 61.20% of ARNC stock, in the hands of institutional investors. The top three institutional holders of ARNC stocks are: JANUS HENDERSON GROUP PLC with ownership of 2,670,118, which is approximately 831.094% of the company’s market cap and around 1.30% of the total institutional ownership; PSAGOT INVESTMENT HOUSE LTD., holding 1,952,947 shares of the stock with an approximate value of $38.36 million in ARNC stocks shares; and GEODE CAPITAL MANAGEMENT, LLC, currently with $33.72 million in ARNC stock with ownership of nearly -2.707% of the company’s market capitalization.

Positions in Arconic Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 110 institutional holders increased their position in Arconic Corporation [NYSE:ARNC] by around 9,311,835 shares. Additionally, 340 investors decreased positions by around 70,515,668 shares, while 5 investors held positions by with 67,013,729 shares. The mentioned changes placed institutional holdings at 12,813,774 shares, according to the latest SEC report filing. ARNC stock had 86 new institutional investments in for a total of 5,582,214 shares, while 323 institutional investors sold positions of 69,492,889 shares during the same period.

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