Alcoa (NYSE:AA) Receives Consensus Recommendation of "Hold" from 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 been assigned a consensus rating of "Hold" from the eleven research firms that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $42.0909.

AA has been the topic of a number of recent research reports. Bank of America lifted their price target on shares of Alcoa from $26.00 to $27.00 and gave the company an "underperform" rating in a research report on Thursday, July 17th. Citigroup raised shares of Alcoa to a "buy" rating and set a $42.00 price target on the stock in a research report on Tuesday, July 8th. B. Riley lifted their price target on shares of Alcoa from $37.00 to $38.00 and gave the company a "buy" rating in a research report on Tuesday, September 9th. JPMorgan Chase & Co. reduced their target price on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating on the stock in a research report on Thursday, July 17th. Finally, Wall Street Zen cut shares of Alcoa from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd.

Alcoa Trading Down 0.8%

AA stock traded down $0.25 during midday trading on Tuesday, reaching $32.47. 6,381,601 shares of the company's stock traded hands, compared to its average volume of 5,519,625. The company has a market capitalization of $8.41 billion, a P/E ratio of 8.48, a PEG ratio of 0.18 and a beta of 2.26. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.65 and a quick ratio of 0.97. Alcoa has a fifty-two week low of $21.53 and a fifty-two week high of $47.77. The business has a 50-day moving average price of $30.99 and a two-hundred day moving average price of $29.36.

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

Alcoa Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. IFP Advisors Inc lifted its position in shares of Alcoa by 1,096.0% during the second quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock worth $26,000 after purchasing an additional 822 shares in the last quarter. Versant Capital Management Inc lifted its position in shares of Alcoa by 134.7% during the first quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock worth $28,000 after purchasing an additional 520 shares in the last quarter. Horrell Capital Management Inc. acquired a new position in shares of Alcoa during the second quarter worth $30,000. Montag A & Associates Inc. acquired a new stake in Alcoa in the first quarter valued at $40,000. Finally, Continuum Advisory LLC raised its holdings in Alcoa by 30.7% in the fourth quarter. Continuum Advisory LLC now owns 1,470 shares of the industrial products company's stock valued at $56,000 after acquiring an additional 345 shares in 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.