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

Key Points

• Alcoa (NYSE:AA) has an average analyst rating of "Hold", with 1 sell, 5 hold, and 6 buy recommendations from a total of 12 firms covering the company.
• The company recently reported quarterly earnings of $0.39 per share, exceeding analysts' expectations of $0.29, alongside a revenue of $3.02 billion.
• Alcoa announced a quarterly dividend of $0.10, representing a 1.2% yield on an annualized basis, with a payout ratio of approximately 10.44%.

Shares of Alcoa (NYSE:AA - Get Free Report) have received an average rating of "Hold" from the twelve ratings firms that are covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $41.75.

A number of analysts have recently weighed in on the company. Morgan Stanley lowered their price objective on Alcoa from $40.00 to $38.00 and set an "overweight" rating for the company in a research report on Friday, July 18th. Bank of America raised their price objective on Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research report on Thursday, July 17th. Citigroup upgraded Alcoa to a "buy" rating and set a $42.00 target price for the company in a research note on Tuesday, July 8th. Wall Street Zen lowered Alcoa from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Finally, B. Riley raised their target price on Alcoa from $37.00 to $38.00 and gave the stock a "buy" rating in a research note on Tuesday, September 9th.

Alcoa Stock Up 1.1%

Alcoa stock opened at $33.59 on Tuesday. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.65 and a quick ratio of 0.97. The stock has a market capitalization of $8.70 billion, a price-to-earnings ratio of 8.77, a PEG ratio of 0.19 and a beta of 2.26. Alcoa has a 1-year low of $21.53 and a 1-year high of $47.77. The business has a fifty day moving average price of $30.84 and a 200-day moving average price of $29.28.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.10. The firm had revenue of $3.02 billion during the quarter, compared to analysts' expectations of $2.96 billion. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The business's quarterly revenue was up 3.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.16 EPS. Equities research analysts forecast that Alcoa will post 4.43 EPS for the current fiscal year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Tuesday, August 12th were paid a $0.10 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $0.40 dividend on an annualized basis and a yield of 1.2%. Alcoa's dividend payout ratio (DPR) is 10.44%.

Hedge Funds Weigh In On Alcoa

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. IFP Advisors Inc raised its stake in Alcoa by 1,096.0% in the 2nd quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock worth $26,000 after acquiring an additional 822 shares during the last quarter. Versant Capital Management Inc raised its stake in shares of Alcoa by 134.7% during the 1st quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock valued at $28,000 after buying an additional 520 shares during the last quarter. Horrell Capital Management Inc. purchased a new position in shares of Alcoa during the 2nd quarter valued at about $30,000. Montag A & Associates Inc. purchased a new position in shares of Alcoa during the 1st quarter valued at about $40,000. Finally, Continuum Advisory LLC raised its stake in shares of Alcoa by 30.7% during the 4th quarter. Continuum Advisory LLC now owns 1,470 shares of the industrial products company's stock valued at $56,000 after buying an additional 345 shares during the last quarter.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.

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