ATI (NYSE:ATI) Shares Gap Down - Here's Why

ATI Inc. (NYSE:ATI - Get Free Report)'s share price gapped down prior to trading on Tuesday . 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 changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Benchmark reaffirmed a "buy" rating and issued a $80.00 price target on shares of ATI in a report on Wednesday, August 7th. Susquehanna started coverage on ATI in a report on Thursday, September 5th. They set a "positive" rating and a $75.00 target price for the company. JPMorgan Chase & Co. raised their price objective on ATI from $65.00 to $75.00 and gave the company an "overweight" rating in a research report on Wednesday, August 21st. Deutsche Bank Aktiengesellschaft upped their price objective on ATI from $81.00 to $84.00 and gave the company a "buy" rating in a research report on Thursday, October 3rd. Finally, KeyCorp cut ATI from an "overweight" rating to a "sector weight" rating in a report on Thursday, October 24th. One analyst has rated the stock with a sell rating, one has given a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, ATI has an average rating of "Moderate Buy" and an average price target of $74.43.

ATI Trading Down 10.1 %

The company has a debt-to-equity ratio of 1.26, a current ratio of 2.13 and a quick ratio of 1.07. The business's fifty day moving average price is $63.37 and its 200 day moving average price is $60.20. The company has a market cap of $7.07 billion, a price-to-earnings ratio of 22.28, a price-to-earnings-growth ratio of 1.38 and a beta of 1.04.

ATI (NYSE:ATI - Get Free Report) last announced its quarterly earnings results on Tuesday, August 6th. The basic materials company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.02. ATI had a net margin of 8.74% and a return on equity of 23.05%. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same quarter last year, the firm posted $0.59 EPS. The business's quarterly revenue was up 5.2% compared to the same quarter last year. Research analysts anticipate that ATI Inc. will post 2.47 earnings per share for the current fiscal year.

ATI announced that its Board of Directors has approved a stock buyback plan on Tuesday, September 3rd that permits the company to repurchase $700.00 million in shares. This repurchase authorization permits the basic materials company to reacquire up to 9.4% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In related news, Chairman Robert S. Wetherbee sold 25,000 shares of ATI stock in a transaction on Tuesday, October 15th. The shares were sold at an average price of $62.23, for a total value of $1,555,750.00. Following the completion of the sale, the chairman now owns 486,443 shares of the company's stock, valued at approximately $30,271,347.89. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.05% of the company's stock.

Hedge Funds Weigh In On ATI

Several hedge funds have recently modified their holdings of the stock. SG Americas Securities LLC increased its position in ATI by 202.7% during the second quarter. SG Americas Securities LLC now owns 27,450 shares of the basic materials company's stock worth $1,522,000 after buying an additional 18,381 shares in the last quarter. Susquehanna Fundamental Investments LLC acquired a new stake in shares of ATI during the 1st quarter worth approximately $763,000. First Hawaiian Bank acquired a new position in shares of ATI during the second quarter worth approximately $757,000. Assenagon Asset Management S.A. increased its holdings in shares of ATI by 17.6% in the second quarter. Assenagon Asset Management S.A. now owns 528,615 shares of the basic materials company's stock worth $29,312,000 after acquiring an additional 79,285 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its stake in ATI by 20.8% in the first quarter. CANADA LIFE ASSURANCE Co now owns 126,978 shares of the basic materials company's stock valued at $6,496,000 after acquiring an additional 21,887 shares during the last quarter.

About ATI

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.