Alcoa (NYSE:AA) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Alcoa (NYSE:AA) currently holds an average consensus recommendation of "Hold" from thirteen ratings firms, with one sell, five hold, and seven buy ratings.
• The company recently reported a quarterly earnings per share (EPS) of $0.39, surpassing estimates, and a revenue of $3.02 billion, which is a 3.9% increase year-over-year.
• Alcoa has announced a quarterly dividend of $0.10 per share, reflecting a 1.4% yield, which will be paid on August 28th to shareholders of record on August 12th.

Shares of Alcoa (NYSE:AA - Get Free Report) have earned an average recommendation of "Hold" from the thirteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and seven have issued a buy recommendation on the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $41.2308.

Several equities research analysts have recently commented on AA shares. UBS Group reissued a "neutral" rating and issued a $31.00 price objective on shares of Alcoa in a report on Thursday, May 15th. Bank of America raised their price target on Alcoa from $26.00 to $27.00 and gave the company an "underperform" rating in a report on Thursday, July 17th. B. Riley cut their price target on Alcoa from $38.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday, July 15th. JPMorgan Chase & Co. cut their price target on Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday, July 17th. Finally, Citigroup raised Alcoa to a "buy" rating and set a $42.00 price target for the company in a report on Tuesday, July 8th.

Alcoa Trading Up 0.6%

NYSE AA opened at $29.51 on Friday. The company has a market cap of $7.64 billion, a PE ratio of 7.70, a PEG ratio of 0.17 and a beta of 2.24. The company has a current ratio of 1.65, a quick ratio of 0.97 and a debt-to-equity ratio of 0.41. Alcoa has a 12 month low of $21.53 and a 12 month high of $47.77. The stock has a 50 day moving average of $29.96 and a 200-day moving average of $29.82.

Alcoa (NYSE:AA - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The industrial products company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.29 by $0.10. The company had revenue of $3.02 billion during the quarter, compared to the consensus estimate of $2.96 billion. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.16 EPS. On average, equities research analysts anticipate that Alcoa will post 4.43 EPS for the current fiscal year.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Tuesday, August 12th will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $0.40 annualized dividend and a yield of 1.4%. Alcoa's dividend payout ratio (DPR) is currently 10.44%.

Institutional Investors Weigh In On Alcoa

Several hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its position in Alcoa by 9.8% during the 2nd quarter. State Street Corp now owns 10,737,466 shares of the industrial products company's stock worth $316,863,000 after buying an additional 959,240 shares during the period. Dimensional Fund Advisors LP increased its position in Alcoa by 33.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,803,086 shares of the industrial products company's stock worth $207,490,000 after buying an additional 1,721,222 shares during the period. L1 Capital Pty Ltd increased its position in Alcoa by 178.8% during the 2nd quarter. L1 Capital Pty Ltd now owns 4,814,342 shares of the industrial products company's stock worth $142,071,000 after buying an additional 3,087,298 shares during the period. Geode Capital Management LLC increased its position in Alcoa by 4.8% during the 2nd quarter. Geode Capital Management LLC now owns 4,637,897 shares of the industrial products company's stock worth $136,898,000 after buying an additional 211,141 shares during the period. Finally, Norges Bank bought a new position in Alcoa during the 2nd quarter worth $97,933,000.

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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