Howmet Aerospace (NYSE:HWM) Stock Price Down 2% Following Analyst Downgrade

Key Points

• Howmet Aerospace shares fell 2% to approximately $226 after Wells Fargo cut its price target from $315 to $255 while maintaining an equal-weight rating.
• Despite the downgrade, analyst sentiment remains favorable, with an average “Moderate Buy” rating and consensus price target of $314.84; other firms maintain buy or outperform ratings.
• Howmet reported quarterly earnings and revenue above expectations, with revenue up 24.1% year over year, and increased its quarterly dividend from $0.12 to $0.14 per share.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report)'s stock price was down 2% on Wednesday after Wells Fargo & Company lowered their price target on the stock from $315.00 to $255.00. Wells Fargo & Company currently has an equal weight rating on the stock. Howmet Aerospace traded as low as $226.02 and last traded at $226.4280. Approximately 2,670,378 shares were traded during trading, a decline of 2% from the average daily volume of 2,728,005 shares. The stock had previously closed at $230.94.

Several other analysts also recently commented on HWM. Morgan Stanley restated an "overweight" rating and set a $335.00 price objective on shares of Howmet Aerospace in a research report on Monday, August 10th. Guggenheim started coverage on Howmet Aerospace in a research note on Monday, September 14th. They issued a "buy" rating and a $350.00 price target for the company. Sanford C. Bernstein raised their price target on Howmet Aerospace from $318.00 to $328.00 and gave the company an "outperform" rating in a report on Monday, August 24th. Wall Street Zen downgraded Howmet Aerospace from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 5th. Finally, Royal Bank Of Canada upped their price objective on Howmet Aerospace from $325.00 to $350.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $314.84.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Premier Path Wealth Partners LLC lifted its position in shares of Howmet Aerospace by 1.0% in the second quarter. Premier Path Wealth Partners LLC now owns 3,812 shares of the company's stock worth $1,025,000 after buying an additional 37 shares in the last quarter. Bartlett & CO. Wealth Management LLC grew its holdings in Howmet Aerospace by 55.1% during the 2nd quarter. Bartlett & CO. Wealth Management LLC now owns 107 shares of the company's stock valued at $29,000 after buying an additional 38 shares in the last quarter. Tudor Financial Inc. increased its stake in Howmet Aerospace by 2.6% in the 4th quarter. Tudor Financial Inc. now owns 1,650 shares of the company's stock worth $338,000 after acquiring an additional 42 shares during the last quarter. Physician Wealth Advisors Inc. raised its holdings in shares of Howmet Aerospace by 2.5% during the 1st quarter. Physician Wealth Advisors Inc. now owns 1,730 shares of the company's stock worth $399,000 after acquiring an additional 42 shares in the last quarter. Finally, Roman Butler Fullerton & Co. raised its holdings in shares of Howmet Aerospace by 0.4% during the 1st quarter. Roman Butler Fullerton & Co. now owns 10,537 shares of the company's stock worth $2,634,000 after acquiring an additional 42 shares in the last quarter. Hedge funds and other institutional investors own 90.46% of the company's stock.

Howmet Aerospace Stock Down 2.0%

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 stock has a market capitalization of $90.60 billion, a P/E ratio of 48.80, a P/E/G ratio of 2.06 and a beta of 1.19. The business has a 50-day moving average price of $261.06 and a 200 day moving average price of $258.15.

Howmet Aerospace (NYSE:HWM - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.33 earnings per share for the quarter, beating analysts' consensus estimates of $1.24 by $0.09. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. 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 firm posted $0.91 earnings per share. Howmet Aerospace's revenue for the quarter was up 24.1% compared to the same quarter last year. 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. On average, equities analysts expect that Howmet Aerospace Inc. will post 5.33 EPS for the current fiscal year.

Howmet Aerospace Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Friday, August 7th were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.2%. 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. Howmet Aerospace's dividend payout ratio is 12.07%.

About Howmet Aerospace

Howmet Aerospace Inc NYSE: HWM is an aerospace and industrial products company that develops and manufactures advanced engineered components and systems. Its products are used primarily in commercial and defense aircraft, aircraft engines, and other transportation and industrial applications.

The company's principal businesses include engine products, fastening systems, engineered structures, and forged wheels. Its offerings include forged and cast engine components, airfoils, titanium and nickel-based parts, aerospace structural components, specialized fasteners, and forged aluminum wheels for commercial transportation.

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