Howmet Aerospace Inc. (NYSE:HWM) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Howmet Aerospace carries a consensus analyst rating of “Moderate Buy”, with 18 of 22 analysts recommending a buy and an average price target of about $283.84.
• The company reported strong first-quarter results, posting EPS of $1.22 versus estimates of $1.11 and revenue of $2.31 billion, both ahead of expectations. Revenue rose 19.1% year over year.
• Howmet also announced a quarterly dividend of $0.12 per share, payable May 26, while insider selling and heavy institutional ownership were also noted in the report.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-two analysts that are covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold rating and eighteen have issued a buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $283.8421.

HWM has been the topic of several research analyst reports. BTIG Research upped their target price on shares of Howmet Aerospace from $275.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Royal Bank Of Canada upped their target price on shares of Howmet Aerospace from $275.00 to $300.00 and gave the company an "outperform" rating in a research note on Wednesday, March 11th. Susquehanna upped their target price on shares of Howmet Aerospace from $300.00 to $330.00 and gave the company a "positive" rating in a research note on Friday, May 8th. Morgan Stanley restated an "overweight" rating and set a $315.00 target price on shares of Howmet Aerospace in a research note on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $320.00 price objective on shares of Howmet Aerospace in a research note on Friday, May 8th.

Howmet Aerospace Price Performance

HWM opened at $260.45 on Monday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.59 and a current ratio of 2.44. The stock has a market capitalization of $104.21 billion, a P/E ratio of 60.43, a P/E/G ratio of 2.07 and a beta of 1.19. The company's 50-day simple moving average is $246.96 and its two-hundred day simple moving average is $226.64. Howmet Aerospace has a 52-week low of $160.01 and a 52-week high of $280.74.

Howmet Aerospace (NYSE:HWM - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.11. The business had revenue of $2.31 billion for the quarter, compared to analysts' expectations of $2.24 billion. Howmet Aerospace had a net margin of 20.23% and a return on equity of 29.27%. The business's revenue for the quarter was up 19.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.86 EPS. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS. As a group, analysts predict that Howmet Aerospace will post 5.02 EPS for the current year.

Howmet Aerospace Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Friday, May 8th will be paid a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Friday, May 8th. Howmet Aerospace's dividend payout ratio is 11.14%.

Insider Activity at Howmet Aerospace

In other news, VP Barbara Lou Shultz sold 1,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $260.00, for a total value of $260,000.00. Following the transaction, the vice president owned 23,874 shares in the company, valued at $6,207,240. This represents a 4.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Neil Edward Marchuk sold 45,150 shares of the stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $251.70, for a total transaction of $11,364,255.00. Following the completion of the transaction, the executive vice president owned 107,008 shares in the company, valued at $26,933,913.60. This trade represents a 29.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 88,082 shares of company stock worth $22,924,929 in the last quarter. Company insiders own 0.85% of the company's stock.

Hedge Funds Weigh In On Howmet Aerospace

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in shares of Howmet Aerospace by 1.4% in the 3rd quarter. Vanguard Group Inc. now owns 49,139,989 shares of the company's stock worth $9,642,740,000 after purchasing an additional 664,595 shares during the period. State Street Corp increased its holdings in Howmet Aerospace by 2.2% in the 4th quarter. State Street Corp now owns 18,365,429 shares of the company's stock worth $3,765,280,000 after acquiring an additional 400,767 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Howmet Aerospace by 27.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,632,206 shares of the company's stock worth $3,409,936,000 after acquiring an additional 3,531,700 shares in the last quarter. Geode Capital Management LLC increased its holdings in Howmet Aerospace by 2.0% in the 4th quarter. Geode Capital Management LLC now owns 11,307,538 shares of the company's stock worth $2,316,277,000 after acquiring an additional 221,775 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Howmet Aerospace by 2.4% in the 3rd quarter. Bank of America Corp DE now owns 10,877,771 shares of the company's stock worth $2,134,545,000 after acquiring an additional 255,419 shares in the last quarter. Institutional investors own 90.46% of the company's stock.

About Howmet Aerospace

Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.

Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.

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