|Bid||18.60 x 800|
|Ask||18.62 x 800|
|Day's Range||17.60 - 18.78|
|52 Week Range||5.80 - 34.27|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||8.37|
|Earnings Date||Jan 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.00|
Finding a reliable stock strategy is a key to sanity in this Age of Coronavirus. The pandemic has pushed governments to impost extreme economic shutdown orders, as part of a larger society ‘stay at home’ policy. The result has been a stoppage of business, a decline in earnings, and a sudden sharp turn from steady economic growth to a deep recessionary event, perhaps even a Depression. And so, for investors, a reliable stock strategy is both necessary and hard to find.One strategy is to follow the insiders. Insiders are the corporate officers and board members charged with running and overseeing public companies. Their positions give them access to information that’s not always available to the general public. To keep the playing field honest, Federal regulators require that insiders publish their trades – and that information can be used by the general public for trading purposes.When the insiders make large purchases, laying down large sums for hefty blocs of shares, it can be taken as a clear sign of confidence. So following their purchases is a viable strategy for finding potentially profitable stock plays.TipRanks has the tools to help you do just that. The Insiders’ Hot Stocks page shows which stocks top insiders are most active on, for both purchases and sales. You can sort insider trades by a variety of filters, including trading strategy. We’ve done some of the legwork for you, and pulled up three stocks with recent informative buy-side transactions. Here are the results.Microchip Technology (MCHP)We’ll start in the semiconductor chip industry. Microchip is a major name in the industry, boasting a market cap of $21.5 billion and the sixth largest sales share among its peers. The company’s focus is on microcontroller and microprocessor chips for memory solutions, power managements apps, and wireless connection devices. These are essential components in today’s digital world – Microchip never has a problem finding customers.Two important company officers have bought up large blocs of shares in recent days. First up was Steve Sanghi, CEO and Chairman, who put down $3.1 million to buy 37,000 shares. Also buying shares was Senior VP Richard Simoncic, who bought over 6,000 shares for more than $501K. This is a substantial fraction of his total $4.8 million holding.The calendar Q1 performance shows the company’s quality. MCHP reported strong EPS, of $1.46, beating the forecast by over 6%. Revenues, while missing the estimates, did grow over 3% sequentially, to $1.33 billion. Management attributed the mixed results to the impact of coronavirus on demand – weak demand in the automotive, industrial, and consumer segments meant that those manufacturers in turn had weak demand for Microchip’s products. At the same time, communication and data center demand grew, as a direct result of the move toward remote office work and customer service.Writing on the stock for Piper Sandler, 5-star analyst Harsh Kumar notes that Microchip’s forward guidance was squarely in line with expectations, and that the company is taking a cautious approach to the 2020 sales environment. Kumar writes, “Looking to the mid and long-term, we continue to like Microchip, as it remains one of the best positioned and most profitable semiconductor companies. Even in the current environment, free cash flow and debt pay down were both exceptional.”Kumar places a Buy rating on MCHP shares, and that backs that with a $120 price target suggesting a 36% upside potential for the coming 12 months. (To watch Kumar’s track record, click here)The Strong Buy analyst consensus rating on this stock is based on 16 reviews, including 13 Buys and 3 Holds. Shares are priced at $87.81, while the average target of $102.56 implies a 16% upside potential. (See Microchip stock analysis on TipRanks)Arconic (ARNC)Last on today’s list is Arconic, a name you may not have heard of in its current incarnation. This company is a spin-off from the aluminum giant Alcoa. Arconic became an independent entity, controlling the parent company’s bauxite and aluminum operations, last November. The new company’s focus is lightweight metals engineering and precision manufacturing. Arconic’s products are used in the aerospace, automotive, commercial transport, defense, electronics, and oil and gas fields. Arconic is particularly well-known for turbine blades. ARNC shares started trading this past March. Since it opened trading less than three months ago, ARCN shares are up 46%.In recent days, no fewer than 5 of Arconic’s insiders have bought up blocs of shares. The prices paid ranged from $114,000 to $346,000. The two largest purchases were by directors: William Austen bought 17,620 shares for $202,000, and Frederick Henderson bought 33,200 shares for $346,000. These purchases are a clear indicator for investors that this company’s officers are confident in its future.Also confident is Credit Suisse analyst Curt Woodworth, who writes, “ARNC is a high-quality producer of aluminum alloy rolled products with significant leverage to secular growth in automotive and packaging, and a LT recovery in aerospace. We see 3Q as a major inflection point as Ford and GM truck / SUV production sharply accelerates and OEMs need to restock heat-treat plate, which has limited shelf life.”Woodworth puts a $22 price target on ARNC shares, implying a strong 71% upside as he initiates coverage on this new industrial stock. (To watch Woodworth’s track record, click here)While ARNC has only two recent reviews (it is a new stock, after all), they combine to a Moderate Buy rating. Shares are selling for $12.84, after two months of solid gains, and the average price target of $19.50 suggests the stock has room for a 51% upside this year. (See Arconic stock analysis on TipRanks)Clipper Realty, Inc. (CLPR)Next up is a real estate investment trust (REIT). These companies typically offer investors a solid combination of firm financial and reliable dividends. Clipper Realty owns, manages and operates commercial properties and multi-family residential (that’s apartments) properties, in and around the New York City area.Two insiders have made informative buys here in the past 7 days. The larger purchase was by David Bistricer, a director of the company. He bought up 106,666 shares for $611,000. His Board colleague, Sam Levinson, made a smaller purchase of 14,334 shares, paying over $82,000. CLPR showed $30.9 million in revenue for Q1 2020, up more than 11% from the year before. Net operating income, at $17.1 million, was a company record – but better for investors, was also up 16% year-over-year. The strong income supported a dividend of 9.5 cents per share for the quarter. CLPR’s dividend has been steady for the past three years, and the current payout ratio, of 73%, is a clear attraction for investors interested in an income stock. The yield, at 5.6%, is almost triple the average yield among financial sector peers.The stock has only one recent analyst review, by B. Riley FBR analyst Craig Kucera, but he wears his bullishness on his sleeve. His Buy rating is backed up with a $14 price target – which implies a robust 107% one-year upside potential. (To watch Kucera’s track record, click here)Kucera writes of CLPR, “1Q20 results were ahead of expectations, and April cash rent collections from CLPR's diversified portfolio of residential, office, and retail assets located in the greater NYC metro were at 94%... we believe CLPR's decision to significantly increase its liquidity during a challenging NYC commercial real estate environment related to COVID-19 was prudent.”To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
(Bloomberg Opinion) -- Gray? Try “steel-colored.” Angular? You must mean “steel-inspired.” I’m referring, of course, to the new logo of the rechristened Arch Resources Inc.The old logo, with its stylized fragment of St Louis’ Gateway Arch, was fine — apart from the fact that it had the word “coal” in it. Arch Coal, the company’s old name, was a mite too connected with a certain fuel that is not only in terminal decline in the U.S. but also rather unpopular with the ESG crowd.When Arch Coal was formed in 1997, America’s power stations were burning 900 million tons a year, generating more than half the country’s electricity, and climbing. Today, thermal coal accounts for less than a fifth of the mix:Remarkably, in announcing its name change this week, Arch pulled a Voldemort with the word “coal”: It doesn’t appear anywhere in the main body of the press release(3). This is doubly impressive when you consider Arch Resources will in fact continue to mine prodigious quantities of ... well, you know. Thingy.Only Arch is now focused on a different class of thingy. Metallurgical coal is thermal coal’s more prosperous sibling, a vital ingredient for making steel; hence Arch’s steely new logo. Except Arch refers to these black rocks dug out from the ground not as metallurgical coal but as metallurgical products.Corporate rebranding tends to offer a rich seam of material, but Arch’s new name is actually a logical progression in a logical strategy.Ever since the miner emerged from chapter 11 in 2016, its approach has been one long tacit acknowledgement that the U.S. thermal coal industry is in a downward spiral. That business has essentially been run for cash, with capex running at just 70% of depreciation, and the company’s Powder River Basin assets are about to be subsumed into a joint venture with Peabody Energy Corp. The more profitable metallurgical business, meanwhile, is expanding, with a major new project in West Virginia underway. Most importantly, though, for every dollar Arch has invested back into the business, it’s spent about $1.60 on stock buybacks, taking in 40% of the shares(1) . This is how you head into the sunset.So the new name and Terminator-esque logo aren’t just some branding consultant’s WFH project. It’s the latest step in Arch’s quest to carve out a new life after death. For example, see this from the announcement:We expect steel to play an essential role in the revitalization of the global economy as it recovers from the disruption of the COVID-19 pandemic, and in the construction of a new economy supported by mass transit systems, wind turbines and electric vehicles.See? No mention of coal, but a cameo by wind turbines, no less (ah, the irony). Mad Men’s Don Draper once pitched Bethlehem Steel on advertising itself as producing the building blocks of America’s great cities. In real life, Arch would like you to know it mines the building blocks that go into making those building blocks.On one level, that’s par for the course. Any commodity producer would like you to associate their otherwise standard product with something more exceptional and valuable; similar thinking underlay Arconic Corp.’s split from aluminum smelter Alcoa Corp. Metallurgical coal may be higher-margin, but it remains a commodity, with all the volatility that entails; the stock has halved so far this year(2). Far better to focus minds on something more stable, like a T-bar.In this case, though, there’s a bigger drama playing out, and the wind turbine is the key character. While Arch’s announcement lacked “coal,” it provided my annual quota of “environmental, social and governance” mentions in the space of a few minutes. Arch is still running its thermal coal mines and likely will for as long as they spit out cash. But competition from cheap shale gas and renewable energy has made thermal coal a tough sell to investors already. Now climate change is making it altogether taboo — regardless of how efficient the miner — as ESG considerations gain traction.The ongoing rebranding of Big Oil as Big Energy reflects similar dynamics. As the function of energy markets shifts from simply producing ever more tons or barrels or whatnot to optimizing supply, demand and emissions, so the expectations of the capital markets shift, too. The multiple that makes a stock price is ultimately just some narrative about the future expressed as a number (for an extreme example, see Tesla Inc.). It isn’t just that Arch’s old story no longer convinces; it’s increasingly unacceptable and thereby a burden on, rather than a boost to, value. Becoming truly steel-inspired requires being a touch coal-amnesic.(1) You'll find a couple of instances further down in the safe-harbor language, but who reads that? Of course we all read that.(2) All figures are aggregated for the period 2017 through the first quarter of 2020.(3) Amove of just $25 a ton in the price of metallurgical coal is enough to swing Arch’sEbitda by $175 million, as per Arch Resources' investor presentation on May 15, 2020. Data are pro-forma for the start up of the Leer South project in West Virginia.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Arconic Corp. (NYSE: ARNC) ("Arconic" or "the Company") announced today that it closed its offering of first lien notes (the "Notes") in the aggregate principal amount of $700 million at 6.000% interest per annum, with a maturity date of May 15, 2025.
Arconic Corp. (NYSE: ARNC) ("Arconic" or "the Company") announced today the pricing of its offering of $700 million aggregate principal amount of 6.00% first lien notes due 2025 (the "Notes"). The sale of the Notes is expected to be completed on May 13, 2020, subject to customary closing conditions.
Moody's Investors Service, ("Moody's") assigned a Ba1 rating to Arconic Corporation's (Arconic) 1st lien senior secured notes and downgraded the Corporate Family Rating (CFR) to Ba3 from Ba2 and the Probability of Default Rating to Ba3-PD from Ba2-PD. The Ba3 2nd lien senior secured notes rating was affirmed. The SGL-1 speculative liquidity grade rating is unchanged.
Arconic Corp. (NYSE: ARNC) ("Arconic" or "the Company") announced today a proposed offering of $600 million aggregate principal amount of first lien notes (the "Notes").
Aluminum sheet maker Arconic Inc. said Monday it expects first-quarter revenue of $1.6 billion, down about 12% from the year-earlier period, due to disruptions in the automotive, commercial transportation and aerospace markets caused by the coronavirus pandemic. The FactSet consensus is for revenue of $3.4 billion. Arconic split into two standalone companies - Arconic Corporation and Howmet Aerospace Inc. -- on April 1 and the guidance is based on preliminary unaudited financial results from Howmet reported on April 14. The Pittsburgh, Pa.-based company said it expects cost savings implemented to combat the effect of the virus are expected to improve its financial profile by $200 million in 2020. The company's China facilities are now back to normal product, while its Russian packaging facility is running at full operations due to strong end-market demand. The company's New York facility resumed operations on April 20 and the Tennessee plant is expected to ramp up activity this week. "We are pleased with the recent announcement on April 22(nd) by the ITC initiating antidumping and countervailing duties trade case against 18 countries on common alloy sheet products and we expect this will benefit our operations and others in industrial aluminum processing," Chief Executive Tim Myers said in a statement. Arconic has more than $1 billion in liquidity, including about $500 million in cash on its balance sheet, and its maturities are "well into the future." "Our business is flexible and cash requirements are countercyclical and we expect working capital will be a source of cash in the near team, and together with the benefit of the recent management actions to reduce costs, we believe we have adequate liquidity to operate the Company in spite of ongoing uncertainties," Chief Financial Officer Erick Asmussen said in the statement.
Arconic Corp. (NYSE: ARNC) ("Arconic" or "the Company") today provided a business update regarding the impact of the COVID-19 pandemic on its business and operations as well as certain preliminary unaudited financial information for the quarter ended March 31, 2020.
Moody's Investors Service ("Moody's") downgraded its ratings for Howmet Aerospace Inc. (Howmet), including the company's corporate family rating (CFR) and probability of default rating (to Ba3 and Ba3-PD, respectively), and the senior unsecured debt ratings (to Ba3, from Ba2). Howmet's speculative grade liquidity (SGL) rating was downgraded to SGL-2 from SGL-1.
Howmet Aerospace (NYSE: HWM) will present its preliminary first quarter 2020 financial results on Tuesday, April 14, 2020. The press release and presentation materials will be available at approximately 4:15 PM ET on April 14 via the "Investors" section of the Howmet Aerospace website. A link to the press release will also be available via Howmet’s Twitter handle @HowmetAerospace at https://twitter.com/howmetaerospace
DEEP DIVE U.S. stocks rallied Wednesday, as some of the worst recent performers posted the biggest gains. • The Dow Jones Industrial Average (DJIA) shot up 780 points (or 3.4%) to close at 23,433.57.
The number of U.S. cases of the coronavirus that causes COVID-19 rose above 400,000 on Wednesday, as companies continued to cut costs and furlough workers as they close offices and idle plants to prevent the spread of the deadly illness.
Arconic Corp. (NYSE: ARNC) announced plans to respond to impacts from the coronavirus pandemic Wednesday, including cutting ten percent of its salaried workforce, according to a news release. It decreased senior-level management salaries by 20 percent and all other salaried employees by 10 percent. The mitigation efforts also include lowering production and labor at all U.S.-based rolling and extrusion facilities through shortened work weeks and shift reductions.
Arconic Corp. said Wednesday said it was targeting a 10% reduction in its salaried workforce, as it looks to cut costs amid a decrease in demand resulting from the COVID-19 pandemic. The aluminum sheet provider had 15,400 employees worldwide in 2019. Among other actions the company is implementing to mitigate the effects of the COVID-19 crisis, Arconic said it was cutting Chief Executive Timothy Myers' salary and the board of directors' annual cash retainer by 30% and senior-level management salaries by 20% and suspending the 401(k) match for salaried employees. The company's New York and Tennessee facilities have been idled "until demand returns," other U.S.-based rolling and extrusion facilities will reduce production and its rolling mill facilities in Europe, China and Russia will modify schedules. The company said it was reducing capital expenditures by 30%. The stock, which was unchanged in premarket trading, while futures for the S&P 500 rose 1.3%.
Arconic Corporation (NYSE: ARNC) announced today that its Board of Directors approved several measures to further mitigate COVID-19 impacts on the Company.
Market forces rained on the parade of Arconic Inc. (NYSE:ARNC) shareholders today, when the analysts downgraded their...
Arconic Corp. (NYSE: ARNC) will replace Whiting Petroleum Corp. (NYSE: WLL) in the S&P; SmallCap 600 effective prior to the open of trading on Monday, April 6. S&P; 500 constituent Howmet Aerospace Inc. (NYSE: HWM -formerly Arconic Inc.) spun off Arconic Corp. in a transaction that was completed today, April 1. Post spin-off Howmet Aerospace will remain in the S&P; 500\. Whiting Petroleum has filed for Chapter 11 bankruptcy.
Arconic Corporation (NYSE: ARNC) launches today as a leader in advanced aluminum sheet, plate, extruded and architectural products that primarily advance the ground transportation, aerospace, industrial, packaging, and commercial building markets. The Company’s common stock will begin trading on the New York Stock Exchange under the ticker "ARNC" at 9:30 a.m. Eastern Daylight Time on April 1, 2020.
Unfortunately for some shareholders, the Arconic (NYSE:ARNC) share price has dived 49% in the last thirty days. The...
In connection with the separation of Arconic Inc. (NYSE: ARNC) into two independent, publicly-traded companies, Arconic Inc. announced today that Arconic Rolled Products Corporation (which will be renamed Arconic Corporation in connection with the separation) ("Arconic Corporation"), is expected to commence trading today, March 18, 2020, on a "when issued" basis under the symbol "ARNC WI" on the New York Stock Exchange. At the time of separation, Arconic Inc. stockholders are expected to receive one share of Arconic Corporation common stock for every four shares of Arconic Inc. common stock held as of the record date. The record date for the distribution of Arconic Corporation common stock is March 19, 2020 and the time of the distribution is expected to be 12:01 A.M. on April 1, 2020. "Regular-way" trading in Arconic Corporation’s common stock is expected to begin on April 1, 2020.
Will the new coronavirus cause a recession in US in the next 6 months? On February 27th, we put the probability at 75% and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to […]
The list stacks up the pay CEOs received against what CEO pay should be related to cumulative total shareholder return over the past five years.