Howmet Aerospace Inc. (NYSE:HWM) to Issue Quarterly Dividend of $0.12

Key Points

• Howmet Aerospace Inc. declared a quarterly dividend of $0.12 per share, marking a significant 20.0% increase from the previous quarterly dividend of $0.10.
• The company reported earnings of $0.86 per share for the last quarter, exceeding analyst expectations, and expects to maintain a low dividend payout ratio of approximately 10% based on projected earnings.
• Analysts are generally optimistic about Howmet Aerospace, with a majority issuing a "buy" rating and target prices ranging from $135.00 to $210.00.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report) declared a quarterly dividend on Tuesday, July 29th, RTT News reports. Shareholders of record on Friday, August 8th will be given a dividend of 0.12 per share on Monday, August 25th. This represents a $0.48 annualized dividend and a yield of 0.25%. This is a 20.0% increase from Howmet Aerospace's previous quarterly dividend of $0.10.

Howmet Aerospace has a dividend payout ratio of 9.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Howmet Aerospace to earn $3.99 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 10.0%.

Howmet Aerospace Stock Performance

HWM stock traded up $1.18 during trading hours on Tuesday, hitting $189.35. 2,289,348 shares of the stock were exchanged, compared to its average volume of 3,046,942. The company has a current ratio of 2.30, a quick ratio of 1.07 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $76.43 billion, a P/E ratio of 61.68, a P/E/G ratio of 2.78 and a beta of 1.43. The company has a 50-day simple moving average of $176.54 and a two-hundred day simple moving average of $147.64. Howmet Aerospace has a 12 month low of $85.39 and a 12 month high of $191.60.

Howmet Aerospace (NYSE:HWM - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.09. The company had revenue of $1.94 billion for the quarter, compared to analyst estimates of $1.94 billion. Howmet Aerospace had a return on equity of 27.25% and a net margin of 16.64%. Howmet Aerospace's quarterly revenue was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.53 EPS. On average, analysts forecast that Howmet Aerospace will post 3.27 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

HWM has been the topic of several analyst reports. BTIG Research reissued a "buy" rating on shares of Howmet Aerospace in a report on Monday, May 5th. Morgan Stanley increased their target price on Howmet Aerospace from $170.00 to $210.00 and gave the stock an "overweight" rating in a report on Thursday, July 17th. UBS Group increased their target price on Howmet Aerospace from $120.00 to $155.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Benchmark raised their price objective on Howmet Aerospace from $85.00 to $135.00 and gave the company a "buy" rating in a research note on Monday, April 21st. Finally, Susquehanna raised their price objective on Howmet Aerospace from $170.00 to $210.00 and gave the company a "positive" rating in a research note on Monday, July 14th. Five equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $150.44.

Insiders Place Their Bets

In other Howmet Aerospace news, CEO John C. Plant sold 800,000 shares of Howmet Aerospace stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $156.96, for a total value of $125,568,000.00. Following the completion of the sale, the chief executive officer directly owned 236,544 shares in the company, valued at approximately $37,127,946.24. The trade was a 77.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Barbara Lou Shultz sold 1,250 shares of Howmet Aerospace stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $155.17, for a total value of $193,962.50. Following the completion of the sale, the vice president owned 23,044 shares of the company's stock, valued at approximately $3,575,737.48. The trade was a 5.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 831,250 shares of company stock worth $130,517,863. 1.04% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Howmet Aerospace

An institutional investor recently bought a new position in Howmet Aerospace stock. Acadian Asset Management LLC purchased a new position in shares of Howmet Aerospace Inc. (NYSE:HWM - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,078 shares of the company's stock, valued at approximately $399,000. 90.46% of the stock is owned by institutional investors.

About Howmet Aerospace

Howmet Aerospace Inc provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels.

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