Robert S. Wetherbee, the Executive Chairman of ATI Inc (NYSE:ATI), has sold 25,000 shares of the company’s common stock, according to a recent SEC filing. The shares were sold at a price of $62.23 each, amounting to a total transaction value of approximately $1.56 million. Following this sale, Wetherbee holds 486,443.34 shares directly. The transaction was conducted under a 10b5-1 plan, a prearranged trading plan for insiders, which was established for personal tax and estate planning purposes.
In other recent news, Allegheny Technologies Incorporated (NYSE:ATI) has demonstrated robust financial performance, with its second-quarter revenue reaching nearly $1.1 billion, the highest in a decade. The company's adjusted earnings per share (EPS) were $0.60, and adjusted EBITDA was $183 million, surpassing expectations. Furthermore, ATI announced new sales commitments of over $4 billion, primarily for high-value nickel products for jet engines, which are projected to yield $100 million per year in incremental revenue.
In a move indicative of confidence in its long-term financial performance, ATI has authorized a $700 million stock repurchase program and plans to redeem the remaining $291 million principal amount of its 3.5% Senior Convertible Notes due in September 2024. Deutsche Bank (ETR:DBKGn) has adjusted its outlook on ATI, raising the price target from $81.00 to $84.00, while maintaining a Buy rating. The bank's revision mirrors its anticipation of ATI's upcoming third-quarter earnings per share (EPS) of $0.66, slightly below the consensus estimate of $0.68.
KeyBanc has also revised ATI's price target upwards, citing the company's ties to the commercial aerospace and defense sectors, new capacity and capabilities, and potential for free cash flow expansion. These recent developments highlight ATI's strong market position and promising growth prospects.
InvestingPro Insights
As Robert S. Wetherbee reduces his stake in ATI Inc, investors might find it valuable to consider additional financial metrics and expert insights. According to InvestingPro data, ATI boasts a market capitalization of $7.86 billion and a P/E ratio of 20.86, suggesting a moderate valuation relative to earnings.
InvestingPro Tips highlight that ATI has delivered a high return over the last year, with the stock price showing a remarkable 66.22% total return in the past 12 months. This performance aligns with the company's strong financial position, as liquid assets exceed short-term obligations, indicating solid financial health.
Despite the recent insider sale, ATI's management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. The company's profitability is also noteworthy, with InvestingPro data showing a gross profit of $835.4 million and an operating income of $420.2 million for the last twelve months as of Q2 2024.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into ATI's financial standing and future potential. These tips, along with real-time metrics, can help investors make more informed decisions about their ATI holdings or potential investments.
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