Alcoa (NYSE:AA) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts give Alcoa a consensus “Hold” rating: Six analysts rate it a buy, four a hold and two a sell, with an average 12-month price target of $61.09 versus the reported share price of $47.48.
• Alcoa’s latest quarterly results fell slightly short of expectations, with EPS of $2.12 versus the $2.25 consensus and revenue of $3.97 billion versus estimates of $3.99 billion.
• The company declared a quarterly dividend of $0.10 per share, equivalent to an annualized $0.40 dividend and a 0.8% yield; institutional investors own 82.39% of its stock.

Alcoa (NYSE:AA - Get Free Report) has received a consensus recommendation of "Hold" from the twelve research firms that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and six have assigned a buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $61.0909.

AA has been the subject of several analyst reports. JPMorgan Chase & Co. lowered their price target on shares of Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a report on Friday, July 17th. Wall Street Zen raised shares of Alcoa from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Weiss Ratings upgraded shares of Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, June 17th. Royal Bank Of Canada set a $70.00 target price on shares of Alcoa in a research note on Wednesday, July 1st. Finally, Bank of America dropped their target price on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a report on Thursday, July 9th.

Alcoa Trading Down 0.4%

Shares of AA stock opened at $47.48 on Friday. Alcoa has a 1-year low of $28.92 and a 1-year high of $84.38. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30. The stock has a market cap of $12.53 billion, a price-to-earnings ratio of 9.77, a PEG ratio of 0.54 and a beta of 1.63. The stock has a 50-day moving average of $55.28 and a 200-day moving average of $60.99.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The industrial products company reported $2.12 EPS for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). Alcoa had a return on equity of 18.90% and a net margin of 9.48%.The company had revenue of $3.97 billion during the quarter, compared to analyst estimates of $3.99 billion. During the same period in the prior year, the firm earned $0.39 earnings per share. On average, equities research analysts forecast that Alcoa will post 6.55 earnings per share for the current year.

Alcoa Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be given a dividend of $0.10 per share. The ex-dividend date is Tuesday, August 11th. This represents a $0.40 annualized dividend and a dividend yield of 0.8%. Alcoa's dividend payout ratio is presently 8.23%.

Institutional Investors Weigh In On Alcoa

Several large investors have recently added to or reduced their stakes in the business. Basepoint Wealth LLC acquired a new position in Alcoa in the fourth quarter valued at approximately $25,000. Western Wealth Management LLC acquired a new stake in shares of Alcoa during the 1st quarter worth approximately $35,000. Caitong International Asset Management Co. Ltd increased its stake in shares of Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 581 shares in the last quarter. Quarry LP increased its stake in shares of Alcoa by 96.0% in the 4th quarter. Quarry LP now owns 694 shares of the industrial products company's stock valued at $37,000 after acquiring an additional 340 shares in the last quarter. Finally, Clearstead Trust LLC lifted its position in shares of Alcoa by 431.7% during the 4th quarter. Clearstead Trust LLC now owns 755 shares of the industrial products company's stock valued at $40,000 after acquiring an additional 613 shares during the period. Institutional investors and hedge funds own 82.39% of the company's stock.

About Alcoa

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company's operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa's product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.

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