ATI (NYSE:ATI) Shares Gap Down on Disappointing Earnings

Shares of ATI Inc. (NYSE:ATI) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $63.22, but opened at $58.16. ATI shares last traded at $56.99, with a volume of 1,062,540 shares trading hands.

The basic materials company reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.06). The company had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.12 billion. ATI had a net margin of 8.74% and a return on equity of 23.05%. The firm’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.55 EPS.

ATI declared that its board has authorized a stock buyback plan on Tuesday, September 3rd that allows the company to buyback $700.00 million in outstanding shares. This buyback authorization allows the basic materials company to reacquire up to 9.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms recently issued reports on ATI. Deutsche Bank Aktiengesellschaft lifted their price target on shares of ATI from $81.00 to $84.00 and gave the stock a “buy” rating in a research note on Thursday, October 3rd. Benchmark reissued a “buy” rating and issued a $80.00 target price on shares of ATI in a research report on Wednesday, August 7th. JPMorgan Chase & Co. lifted their price target on shares of ATI from $65.00 to $75.00 and gave the company an “overweight” rating in a report on Wednesday, August 21st. Susquehanna reduced their target price on shares of ATI from $75.00 to $70.00 and set a “positive” rating for the company in a research note on Wednesday. Finally, KeyCorp lowered shares of ATI from an “overweight” rating to a “sector weight” rating in a research note on Thursday, October 24th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, ATI currently has an average rating of “Moderate Buy” and an average price target of $73.71.

Insider Activity

In other ATI news, Chairman Robert S. Wetherbee sold 25,000 shares of the stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $62.23, for a total transaction of $1,555,750.00. Following the sale, the chairman now owns 486,443 shares of the company’s stock, valued at $30,271,347.89. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.05% of the company’s stock.

Institutional Trading of ATI

Hedge funds have recently bought and sold shares of the stock. Catalyst Capital Advisors LLC raised its holdings in shares of ATI by 12,413.7% in the third quarter. Catalyst Capital Advisors LLC now owns 47,427 shares of the basic materials company’s stock valued at $3,173,000 after purchasing an additional 47,048 shares during the last quarter. New York State Teachers Retirement System boosted its position in ATI by 2.4% during the third quarter. New York State Teachers Retirement System now owns 157,480 shares of the basic materials company’s stock worth $10,537,000 after purchasing an additional 3,760 shares during the period. Pallas Capital Advisors LLC bought a new stake in shares of ATI in the third quarter valued at about $307,000. Wealth Enhancement Advisory Services LLC raised its stake in ATI by 13.4% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,333 shares of the basic materials company’s stock valued at $1,093,000 after purchasing an additional 1,936 shares in the last quarter. Finally, Sequoia Financial Advisors LLC raised its stake in ATI by 3.3% in the third quarter. Sequoia Financial Advisors LLC now owns 5,383 shares of the basic materials company’s stock valued at $360,000 after purchasing an additional 172 shares in the last quarter.

ATI Stock Performance

The company has a quick ratio of 1.07, a current ratio of 2.13 and a debt-to-equity ratio of 1.26. The firm has a market cap of $6.74 billion, a price-to-earnings ratio of 21.25, a P/E/G ratio of 1.38 and a beta of 1.04. The stock has a 50 day moving average of $63.02 and a 200 day moving average of $60.20.

ATI Company Profile

ATI Inc produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts.