ATI (NYSE:ATI) Shares Up 8% After Strong Earnings

Key Points

• ATI shares rose 8% after the company reported quarterly EPS of $1.46, exceeding the $1.37 consensus estimate, while revenue reached $1.42 billion versus expectations of $1.32 billion.
• Quarterly revenue increased 26.5% year over year, and earnings rose from $0.85 per share in the same period a year earlier.
• Analysts maintain a consensus “Buy” rating with a $223.88 price target, although several firms recently lowered their targets; insiders have also sold approximately $18.0 million of stock over the past 90 days.

Shares of ATI Inc. (NYSE:ATI - Get Free Report) shot up 8% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $177.57 and last traded at $178.5830. 756,133 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 1,820,352 shares. The stock had previously closed at $165.30.

The basic materials company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.37 by $0.09. The business had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.32 billion. ATI had a return on equity of 29.27% and a net margin of 10.09%. ATI's quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.85 EPS.

Wall Street Analysts Forecast Growth

ATI has been the topic of a number of analyst reports. KeyCorp dropped their target price on ATI from $258.00 to $228.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $262.00 price objective on shares of ATI in a research report on Monday, August 10th. BTIG Research boosted their target price on ATI from $180.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Wells Fargo & Company cut their price target on shares of ATI from $275.00 to $240.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 30th. Finally, TD Cowen increased their price target on shares of ATI from $170.00 to $210.00 and gave the stock a "buy" rating in a report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating and nine have issued a Buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $223.88.

Insider Activity

In other news, CEO Kimberly A. Fields sold 24,845 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $231.19, for a total transaction of $5,743,915.55. Following the completion of the transaction, the chief executive officer directly owned 100,719 shares of the company's stock, valued at approximately $23,285,225.61. This trade represents a 19.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Timothy J. Harris sold 9,000 shares of the business's stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $191.82, for a total transaction of $1,726,380.00. Following the completion of the transaction, the vice president owned 88,187 shares of the company's stock, valued at $16,916,030.34. This trade represents a 9.26% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 85,830 shares of company stock worth $18,046,361. Insiders own 0.98% of the company's stock.

Institutional Trading of ATI

Hedge funds have recently modified their holdings of the stock. Signature Equity Partners LLC lifted its holdings in ATI by 208.5% in the first quarter. Signature Equity Partners LLC now owns 182 shares of the basic materials company's stock worth $26,000 after purchasing an additional 123 shares during the period. CoreCap Advisors LLC bought a new position in ATI in the 2nd quarter worth $30,000. Retirement Wealth Solutions LLC bought a new stake in shares of ATI in the third quarter valued at about $30,000. V Square Quantitative Management LLC lifted its stake in ATI by 71.9% during the third quarter. V Square Quantitative Management LLC now owns 220 shares of the basic materials company's stock worth $42,000 after purchasing an additional 92 shares during the period. Finally, Summit Securities Group LLC bought a new position in ATI during the 1st quarter valued at about $60,000.

ATI Trading Up 8.3%

The business's fifty day simple moving average is $192.12 and its 200 day simple moving average is $172.52. The stock has a market cap of $24.37 billion, a P/E ratio of 52.54, a price-to-earnings-growth ratio of 0.93 and a beta of 0.99. The company has a current ratio of 2.33, a quick ratio of 1.14 and a debt-to-equity ratio of 0.91.

About ATI

ATI Inc NYSE: ATI is a specialty materials and components manufacturer serving demanding applications in the aerospace and defense, medical, energy, and industrial markets. The company develops and produces materials designed to perform in high-temperature, high-strength, and corrosion-resistant environments.

Its products include nickel-based superalloys, titanium and titanium-based materials, specialty steels, precision-rolled materials, forgings, and other engineered components. These products are used in aircraft engines and airframes, defense systems, medical implants and devices, power-generation equipment, and other industrial applications.

ATI was formed in 1996 through the combination of Allegheny Ludlum Corporation and Teledyne, Inc The company serves customers in the United States and international markets through manufacturing and processing operations across North America and Europe.

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