Is Now the Time to Invest in Allegheny Technologies Incorporated (ATI)?

Is Now the Time to Invest in Allegheny Technologies Incorporated (ATI)?


Many stocks have been testing new highs in 2020, and one of the most notable is Allegheny Technologies Incorporated (ATI). Currently, ATI is trading at $11.84 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $11.20.

To add more color to this target, the company’s high over the last year is $25.66 and the low is $4.95. Over the last 52 weeks, ATI is down -53.86% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ATI reported a profit of $134.8 million. Allegheny Technologies Incorporated also saw revenues increase to $955.5 million. In addition, ATI has free cash flow of -$144.5 million as of 03-2020 The company’s EBITDA came in at $105.7 million which compares well with its peers.

ATI booked profit margins of 6.50%, its Return on Equity (ROE) is 12.60%, and its Return on Assets is 4.70%. All told, it is clear that, ATI needs to be on your watchlist.

About Allegheny Technologies Incorporated

If readers are unfamiliar, Allegheny Technologies Incorporated manufactures and sells specialty materials and components worldwide. The company operates in two segments, High Performance Materials & Components and Advanced Alloys & Solutions. The company produces high performance materials, including titanium and titanium-based alloys; nickel-and cobalt-based alloys and superalloys; zirconium and related alloys, such as hafnium and niobium; powder alloys; and other specialty materials in long product forms of ingots, billets, bars, rods, wires, and shapes and rectangles, as well as seamless tubes, plus precision forgings, castings, components, and machined parts to the aerospace and defense, medical, oil and gas, and electrical energy markets. It also provides stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys in various product forms, including plate, sheet, engineered strip, and precision rolled strip products to various markets, such as chemical and hydrocarbon processing, automotive, aerospace and defense, food processing equipment and appliances, construction and mining, electronics, communication equipment, and computers. Allegheny Technologies Incorporated was founded in 1960 and is based in Pittsburgh, Pennsylvania.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ATI has a short ratio of 2.81 and outstanding shares of 126.10M.

Company Outlook

ATI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.14 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.86. Allegheny Technologies Incorporated ATI also noted assets of $5.81 billion at the end of the last quarter. Investors should also keep an eye on sector updates as ATI has historically followed its peers on positive news.

All told, Allegheny Technologies Incorporated ATI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ATI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Allegheny Technologies Incorporated ATI is now commanding a market cap of 1.49B and a float of 125.62M. ATI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ATI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ATI, either long or short, and we have not been compensated for this article.