ATI Reaches Agreement With United Steelworkers On New 6-Year Contract, Stock Gains Afterhours: Retail Remains Bearish

Shares of ATI Inc. (ATI) gained over 1% in after-market trade on Friday after the company announced it had reached a tentative agreement with United Steelworkers on a new six-year contract.

The ATI stock extended its gains of 2.2%, helping it climb back to a two-week high.

The specialty materials maker said that this tentative agreement, hashed out with the United Steelworkers leadership, will be presented to the union members for ratification.

"The efforts of both parties have resulted in a tentative agreement that rewards our hard-working employees and contributes to the long-term viability of ATI," said Kim Fields, President and CEO.

United Steelworkers is a union of over 800,000 members.

ATI reported its fourth-quarter results in February, posting earnings per share (EPS) of $0.79, comfortably ahead of analyst expectations of $0.59. Its revenue stood at $1.2 billion, higher than the estimated $1.07 billion.

The Dallas, Texas-based company produces titanium and titanium alloys, nickel-based alloys, and other products used in aerospace, defense, and other industries.

The company guided for an EPS between $2.80 and $3.00, with the consensus being the $2.90 midpoint.

ATI’s Q4 performance resulted in a slew of price target hikes. According to The Fly, analysts noted that the company is demonstrating solid growth and could benefit from commercial aerospace tailwinds in the coming years.

On Stocktwits, retail sentiment around the ATI stock remained in the ‘bearish’ (34/100) territory at the time of writing.

ATI’s stock has gained over 5.5% year-to-date (YTD), and nearly 16.8% in the past year.

The average price target for the ATI stock is $73.78, according to FinChat data, implying an upside of 27% from Friday’s closing price.

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