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ATI's Board Authorizes $700 Million Share Buyback Program
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ATI Inc. (ATI - Free Report) stated that its board of directors has authorized the repurchase of up to $700 million in outstanding common shares, which the company anticipates would support a multi-year share buyback program. Repurchases under the program can be made on the open market or in privately negotiated deals, with the amount and timing of buybacks determined by market circumstances and corporate needs.
The stock repurchase program does not require the company to buy back a certain number of shares, and ATI’s board may alter, suspend, or terminate it at any time without prior notice.
This latest program renewal demonstrates ATI's continued confidence in its long-term financial performance, as well as its strong cash and liquidity position. It is well-placed in growing markets, offering high-performance materials and solutions for its customers' requirements.
Furthermore, ATI has informed the holders of the remaining $291 million principal amount of its 3.5% Senior Convertible Notes due 2025 that the Notes will be redeemed on Sept. 10, 2024. Holders of any outstanding Notes have the right, prior to the close of business on Sept. 9, 2024, to convert the principal amount of such Notes into shares of ATI's common stock, par value 10 cents per share, at a conversion rate of 64.7178 shares of common stock per $1,000 principal amount of the Notes. Notes not tendered for conversion before the close of business on Sept. 9, 2024, will be redeemed in cash on Sept. 10, 2024, at a redemption price equal to the principal amount of the Notes plus accrued and unpaid interest.
ATI's capabilities, long-term agreements and backlog enable the company to reaffirm its full-year outlook. Its clear strategy of leading in aerospace & defense and 'aero-like' markets keeps ATI on track to meet its 2024 guidance. The company expressed confidence in its ability to achieve the financial targets set for 2025 and 2027. ATI also highlighted the recent announcement of $4 billion in new sales commitments from the Farnborough International Airshow, predominantly for nickel alloys, which includes $550 million in revenues for 2027. This demonstrates that ATI remains on track to exceed $5 billion in revenues and $1 billion in adjusted EBITDA by 2027.
Zacks Rank & Key Picks
ATI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Newmont Corporation (NEM - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 108.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 71% in the past year.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days. NEM, a Zacks Rank #1 stock, has gained nearly 32.9% in the past year.
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ATI's Board Authorizes $700 Million Share Buyback Program
ATI Inc. (ATI - Free Report) stated that its board of directors has authorized the repurchase of up to $700 million in outstanding common shares, which the company anticipates would support a multi-year share buyback program. Repurchases under the program can be made on the open market or in privately negotiated deals, with the amount and timing of buybacks determined by market circumstances and corporate needs.
The stock repurchase program does not require the company to buy back a certain number of shares, and ATI’s board may alter, suspend, or terminate it at any time without prior notice.
This latest program renewal demonstrates ATI's continued confidence in its long-term financial performance, as well as its strong cash and liquidity position. It is well-placed in growing markets, offering high-performance materials and solutions for its customers' requirements.
Furthermore, ATI has informed the holders of the remaining $291 million principal amount of its 3.5% Senior Convertible Notes due 2025 that the Notes will be redeemed on Sept. 10, 2024. Holders of any outstanding Notes have the right, prior to the close of business on Sept. 9, 2024, to convert the principal amount of such Notes into shares of ATI's common stock, par value 10 cents per share, at a conversion rate of 64.7178 shares of common stock per $1,000 principal amount of the Notes. Notes not tendered for conversion before the close of business on Sept. 9, 2024, will be redeemed in cash on Sept. 10, 2024, at a redemption price equal to the principal amount of the Notes plus accrued and unpaid interest.
ATI Inc. Price and Consensus
ATI Inc. price-consensus-chart | ATI Inc. Quote
ATI's capabilities, long-term agreements and backlog enable the company to reaffirm its full-year outlook. Its clear strategy of leading in aerospace & defense and 'aero-like' markets keeps ATI on track to meet its 2024 guidance. The company expressed confidence in its ability to achieve the financial targets set for 2025 and 2027. ATI also highlighted the recent announcement of $4 billion in new sales commitments from the Farnborough International Airshow, predominantly for nickel alloys, which includes $550 million in revenues for 2027. This demonstrates that ATI remains on track to exceed $5 billion in revenues and $1 billion in adjusted EBITDA by 2027.
Zacks Rank & Key Picks
ATI currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Newmont Corporation (NEM - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 108.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 71% in the past year.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days. NEM, a Zacks Rank #1 stock, has gained nearly 32.9% in the past year.