Howmet Aerospace Inc. $HWM Stock: Summit Wealth Group LLC Co. Grows Stake

Key Points

• Summit Wealth Group increased its Howmet Aerospace stake by 298.3% in the third quarter, ending the period with 6,708 shares valued at about $1.52 million. Institutional investors collectively own 90.46% of the stock.
• Howmet beat third-quarter expectations, reporting $1.46 in earnings per share and $2.70 billion in revenue; revenue rose 29.4% year over year, supported by aerospace demand.
• Despite strong results and a KeyBanc upgrade, valuation concerns and several analyst price-target cuts remain risks; the stock’s average analyst rating is “Moderate Buy,” with an average target of $295.81.

Summit Wealth Group LLC Co. boosted its holdings in shares of Howmet Aerospace Inc. (NYSE:HWM - Free Report) by 298.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 6,708 shares of the company's stock after purchasing an additional 5,024 shares during the period. Summit Wealth Group LLC Co.'s holdings in Howmet Aerospace were worth $1,517,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in HWM. BlackRock Inc. acquired a new stake in shares of Howmet Aerospace during the 2nd quarter valued at $12,318,939,000. Bank of America Corp DE bought a new stake in shares of Howmet Aerospace during the 2nd quarter worth $2,766,806,000. Jupiter Topco LLC bought a new stake in shares of Howmet Aerospace during the 2nd quarter worth $2,065,086,000. Bank of New York Mellon Corp acquired a new position in shares of Howmet Aerospace in the 2nd quarter worth $1,099,765,000. Finally, Legal & General Group Plc acquired a new position in shares of Howmet Aerospace in the 2nd quarter worth $580,991,000. 90.46% of the stock is currently owned by institutional investors.

Howmet Aerospace Price Performance

HWM opened at $222.65 on Wednesday. The stock has a fifty day moving average of $227.02 and a 200-day moving average of $248.47. The firm has a market capitalization of $88.54 billion, a P/E ratio of 42.09, a PEG ratio of 1.56 and a beta of 1.31. Howmet Aerospace Inc. has a 12-month low of $183.52 and a 12-month high of $310.00. The company has a quick ratio of 0.90, a current ratio of 1.86 and a debt-to-equity ratio of 0.70.

Howmet Aerospace (NYSE:HWM - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.37 by $0.09. Howmet Aerospace had a return on equity of 36.44% and a net margin of 21.10%. The business had revenue of $2.70 billion during the quarter, compared to analysts' expectations of $2.59 billion. During the same quarter last year, the firm posted $0.95 earnings per share. Howmet Aerospace's revenue was up 29.4% compared to the same quarter last year. Equities analysts forecast that Howmet Aerospace Inc. will post 5.48 EPS for the current fiscal year.

Howmet Aerospace Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Friday, November 6th. Howmet Aerospace's dividend payout ratio is currently 10.96%.

Howmet Aerospace News Summary

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Strong Q3 execution and demand: Howmet reported adjusted earnings of $1.46 per share, above the $1.37 consensus, and revenue of $2.70 billion versus estimates of $2.59 billion. Revenue rose 29.4% year over year. Growth in commercial and defense aerospace, higher aircraft production, and demand for engine spares support continued momentum. Howmet Aerospace's Q3 Aerospace Demand Surges
• Positive Sentiment: KeyBanc upgrade: KeyBanc raised its rating from sector weight to overweight after the Q3 report, with a $237 price target. The upgrade signals greater confidence in Howmet’s outlook. KeyBanc upgrade
• Neutral Sentiment: Options volatility is rising: Higher implied volatility points to expectations for larger share-price swings, but does not indicate their direction. Options volatility article
• Negative Sentiment: Valuation and target cuts pose risks: A Seeking Alpha analysis argues that the valuation leaves little room for execution missteps. BTIG cut its target from $340 to $280 while retaining a buy rating, and UBS lowered its target from $255 to $230 with a neutral rating. These reductions may limit enthusiasm despite the positive operating results. Valuation analysis BTIG target cut

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on HWM. Royal Bank Of Canada cut their target price on Howmet Aerospace from $350.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday, October 15th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $298.00 price target (down from $328.00) on shares of Howmet Aerospace in a research report on Wednesday, October 7th. Susquehanna decreased their price target on Howmet Aerospace from $340.00 to $275.00 and set a "positive" rating for the company in a research report on Friday, October 30th. Citigroup reissued a "buy" rating on shares of Howmet Aerospace in a research note on Tuesday, October 27th. Finally, JPMorgan Chase & Co. boosted their price objective on Howmet Aerospace from $310.00 to $350.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Howmet Aerospace currently has an average rating of "Moderate Buy" and an average target price of $295.81.

Howmet Aerospace Company Profile

Howmet Aerospace Inc NYSE: HWM is a global manufacturer of advanced engineered products and materials primarily serving the aerospace, defense, commercial transportation and industrial markets. The company develops components designed to operate in demanding environments where strength, durability and weight reduction are important.

Howmet's product portfolio includes aircraft engine components, airframe structures, titanium and nickel-based forgings, fastening systems and wheels for commercial vehicles.

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