Drilling Down Into Arconic Inc. (ARNC)

Arconic Inc. (ARNC) is an interesting player in the Basic Materials space, with a focus on Aluminum. The stock has been active on the tape, currently trading at $18.00, down from yesterday’s close by -0.88%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Arconic Inc. (ARNC) currently trades with a market capitalization of $8.69 Billion. That value represents a market adjusting for revenues that have been growing by 7.93 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$45 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.31 on a per share basis this quarter. Perhaps, that suggests something about why 0.39% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Arconic Inc. recorded a 52-week high of $31.17. It is now trading 13.17% off that level. The stock is trading $19.83 its 50-day moving average by 1.83%. The stock carved out a 52-week low down at $16.66.

In recent action, Arconic Inc. (ARNC) has made a move of -1.75% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.39% with $481.01 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ARNC.

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