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Allegheny (ATI) Hits 52-Week Low on Pricing Challenges

Shares of Allegheny Technologies Inc. ATI hit a new 52-week low of $15.86 on Sep 22 and eventually closed modestly higher at $16.21. Year to date, Allegheny’s shares have recorded a negative return of around 52.45%.

Factors to Consider

Allegheny posted a wider year-over-year loss in second-quarter 2015, hurt by weak demand across its operations. Sales, too, fell year over year and missed expectations.

Allegheny is facing an overcapacity of stainless steel. A significant portion of the sales under the High Performance Metals segment are made to customers in the commercial aerospace industry. The commercial aerospace industry has historically been cyclical. Although the aerospace market has shown some improvement recently, we expect Allegheny to see slower growth in its High Performance segment, which generates a major chunk of revenues. Results from this segment remains affected by low operating rates at the company’s Rowley titanium sponge facility and its...