Howmet Aerospace (NYSE:HWM) Stock Jumps 1.4% - Should You Buy?

Key Points

• Howmet Aerospace shares rose 1.4% to about $232.62, although trading volume was roughly 20% below the average.
• Analyst sentiment remains positive: the stock has an average “Buy” rating and a consensus price target of $318, with several firms recently raising their targets.
• Recent results exceeded expectations, with quarterly EPS of $1.33 and revenue of $2.55 billion, up 24.1% year over year. The company also raised its quarterly dividend to $0.14 per share, though its 0.2% yield remains modest.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report) was up 1.4% during trading on Friday. The stock traded as high as $233.42 and last traded at $232.6170. 2,183,901 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 2,734,229 shares. The stock had previously closed at $229.38.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. UBS Group increased their price objective on shares of Howmet Aerospace from $299.00 to $326.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. JPMorgan Chase & Co. boosted their price objective on Howmet Aerospace from $310.00 to $350.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $370.00 target price on shares of Howmet Aerospace in a research report on Sunday, August 9th. Zacks Research raised shares of Howmet Aerospace from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 12th. Finally, Weiss Ratings upgraded shares of Howmet Aerospace from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Howmet Aerospace currently has an average rating of "Buy" and a consensus price target of $318.00.

Howmet Aerospace Price Performance

The business's 50-day simple moving average is $263.69 and its 200 day simple moving average is $258.62. The company has a current ratio of 1.82, a quick ratio of 0.87 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $93.07 billion, a P/E ratio of 50.13, a P/E/G ratio of 2.03 and a beta of 1.19.

Howmet Aerospace (NYSE:HWM - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $0.09. Howmet Aerospace had a return on equity of 33.91% and a net margin of 20.52%.The firm had revenue of $2.55 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same period last year, the company posted $0.91 EPS. The firm's quarterly revenue was up 24.1% on a year-over-year basis. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. As a group, sell-side analysts anticipate that Howmet Aerospace Inc. will post 5.33 EPS for the current year.

Howmet Aerospace Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Friday, August 7th were issued a dividend of $0.14 per share. The ex-dividend date of this dividend was Friday, August 7th. This is an increase from Howmet Aerospace's previous quarterly dividend of $0.12. This represents a $0.56 dividend on an annualized basis and a yield of 0.2%. Howmet Aerospace's dividend payout ratio is presently 12.07%.

Institutional Investors Weigh In On Howmet Aerospace

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in Howmet Aerospace in the second quarter worth approximately $12,318,939,000. State Street Corp lifted its position in shares of Howmet Aerospace by 3.3% in the second quarter. State Street Corp now owns 18,933,928 shares of the company's stock worth $5,090,576,000 after purchasing an additional 612,866 shares in the last quarter. Geode Capital Management LLC increased its stake 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 valued at $2,316,277,000 after buying an additional 221,775 shares during the period. Bank of America Corp DE lifted its position in Howmet Aerospace by 1.7% in the 1st quarter. Bank of America Corp DE now owns 10,728,447 shares of the company's stock worth $2,472,478,000 after buying an additional 177,533 shares in the last quarter. Finally, Norges Bank purchased a new stake in Howmet Aerospace in the 4th quarter worth approximately $1,793,698,000. 90.46% of the stock is owned by institutional investors and hedge funds.

About Howmet Aerospace

Howmet Aerospace Inc NYSE: HWM is an aerospace and industrial manufacturer that develops and produces engineered components for commercial and defense aircraft, as well as products for transportation, energy and other industrial markets. Its offerings include aircraft engine components, airframe structures, fastening systems and forged aluminum wheels for commercial transportation.

The company's aerospace products include turbine airfoils, engine casings, structural components and other specialized parts designed to support aircraft performance and efficiency.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.