Haynes Intl (HAYN 41.77, +6.09) a developer, manufacturer and marketer of technologically advanced, high performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries trades about 17.1% higher today in reaction to an analyst upgrade at Longbow.
It’s worth pointing out that heading into this morning’s action, HAYN was down about 2.8% from April highs just a few weeks ago. The stock, while still managing modest losses YTD, has fallen about 1.5% since the start of May yet still boasts a decent recovery of YTD lows in mid-March near the $33.82 level.
That being said, HAYN is seeing some strong upside in reaction to the Longbow analyst’s upgrade. The stock is only six trading sessions removed from the mixed Q2 report. In that print, the company reported a worse than expected loss of $0.10 per share but better than expected revenues of $103.1 million.
Heading into the early-May results, it appeared that the writing was on the wall, as the company had guided for a pretty tough quarter back when it reported Q1 earnings in February. Specifically, management was calling for revenues and earnings to be similar to Q1 levels (which came in at a loss of $0.06 per share and $93.36 million, respectively). This then could explain why HAYN is trading up, albeit on a few days delay, following the print as by the company’s own guidance, the Q2 results technically out-performed.
Also, the company at the time of the Q2 report highlighted strength in Aerospace, industrial and gas turbines as reasoning for the revenue performance, a point of emphasis in the upgrade of the stock from Longbow this morning.
From here, the stock has the key $43 level above it, a point of resistance in April. Going back five months, just before the turn of the year, HAYN’s stock was sitting just above the $48 level, but a string of bad reports 4Q16 (Sep) and 1Q17 (Dec) have put the stock at levels second-worst in the stock’s history, only to February and March of 2009.
With support even lower still near the aforementioned $33.82 mark from mid-March, and farther back to the $31 level from this past November, HAYN could sustain the bounce higher here. Of course, that would require cooperation from the alloy market and the broader sector. By all accounts, the stock should have traded up on the print in early-May, but in the real world, it took a Street analyst’s upgrade to open investor’s eyes.