StockNews.com Downgrades ATI to 'Sell' Rating

ATI (NYSE:ATI - Get Free Report) has received a downgrade from analysts at StockNews.com, falling from a "hold" rating to a "sell" rating as outlined in a report published on Thursday.

This recent downgrade adds to the mixed assessments surrounding ATI's stock. Several other analysts have chimed in with varying perspectives. For instance, Deutsche Bank Aktiengesellschaft recently increased its target price for ATI shares, raising it from $81.00 to $84.00, while also maintaining a "buy" rating as per their research released on October 3rd. Conversely, Susquehanna adjusted their price target down from $75.00 to $70.00, endorsing a "positive" outlook on the stock in their report dated October 30th. Additionally, KeyCorp changed its stance, lowering the rating from "overweight" to "sector weight" in a note on October 24th.

In total, two analysts have assigned a "sell" rating to ATI, one has given it a "hold" rating, whereas six analysts have recommended buying the stock. As of now, MarketBeat.com indicates that ATI holds an average rating of "Hold" alongside an average price target of $73.71.

Current Performance of ATI Stock

During midday trading on Thursday, ATI stock saw a minor increase of $0.09, bringing its price to $55.61. Trading volume reached 1,438,364 shares, which surpasses the average volume of 1,364,893 shares. The current market capitalization for ATI stands at $7.93 billion, with a price-to-earnings (P/E) ratio of 21.39 and a price-to-earnings growth (PEG) ratio of 1.95. The stock exhibits a beta of 1.12, suggesting some level of volatility. Over the past year, ATI's share price has fluctuated with a low of $38.04 and a high of $68.92. Furthermore, the company has a debt-to-equity ratio of 0.97, a current ratio of 2.94, and a quick ratio of 1.44. The 50-day simple moving average for ATI is $56.93, while the 200-day simple moving average stands at $60.08.

Earnings Results Overview

ATI last reported its quarterly earnings on October 29th, where it announced earnings per share (EPS) of $0.60, a shortfall from the consensus estimate of $0.66 by $0.06. For this quarter, the company achieved a net margin of 8.85% and a return on equity of 21.39%. Total revenue amounted to $1.05 billion, which fell short of analysts' projections of $1.12 billion. However, this represents a 2.5% increase from the previous year's revenue for the same period, where the business earned $0.55 per share. Analysts predict that ATI will report an EPS of 2.27 for the current fiscal year.

Insider Trading Activity

In related news, Senior Vice President Tina Killough Busch sold 2,598 shares of ATI on December 4th, with the shares sold at an average price of $60.02, amounting to a total of approximately $155,931.96. After the sale, Busch holds 21,553 shares valued at around $1,293,611.06, reflecting a decrease in ownership of about 10.76%. This transaction was officially disclosed to the SEC. Additionally, Chairman Robert S. Wetherbee divested 25,000 shares on October 15th at an average price of $62.23, translating into a total sale value of $1,555,750.00. Following this completion, Wetherbee retains 486,443 shares worth approximately $30,271,347.89, marking a decrease of about 4.89% in his holdings. In total, insiders sold 52,598 shares worth $3,186,432 in the last quarter, with 0.71% of the stock being owned by corporate insiders.

Hedge Fund Activity

Recently, several hedge funds and institutional investors have adjusted their stakes in ATI. Sequoia Financial Advisors LLC increased its position in ATI by 3.3% during the third quarter, bringing its total to 5,383 shares valued at $360,000 after acquiring an additional 172 shares. Beck Capital Management LLC raised its stake by 0.8% in the second quarter, now owning 34,229 shares worth $1,898,000 after purchasing an extra 262 shares. KBC Group NV grew its position by 12.9% in the third quarter, now holding 3,362 shares valued at $225,000 after acquiring an additional 385 shares. Souders Financial Advisors increased its holdings by 6.1%, totaling 7,125 shares worth $477,000 after adding 411 shares. Finally, Quarry LP raised its stake significantly by 86.4%, now owning 889 shares worth $59,000 after acquiring an additional 412 shares during the third quarter.

About ATI Inc.

ATI Inc. is engaged in the production and sale of specialty materials and complex components on a global scale. The company operates across two main segments: High-Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment manufactures a range of materials, including titanium alloys, nickel- and cobalt-based alloys, superalloys, and other specialty materials, offered in various forms such as ingots, billets, bars, wires, seamless tubes, and precision machined parts.

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