Alcoa (NYSE:AA) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Alcoa from buy to hold, adding to a mixed but mostly cautious analyst stance on the stock.
• Alcoa reported Q1 earnings of $1.40 per share, missing estimates of $1.60, while revenue of $3.19 billion also fell short of expectations and declined year over year.
• Despite the downgrade, Alcoa shares were up 0.8% and the stock has drawn varied price targets, with MarketBeat showing an average hold rating and a consensus target price of $64.27.

Alcoa (NYSE:AA - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

AA has been the topic of a number of other research reports. Weiss Ratings upgraded shares of Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 29th. JPMorgan Chase & Co. lifted their target price on shares of Alcoa from $68.00 to $70.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. Wells Fargo & Company set a $68.00 target price on shares of Alcoa in a research note on Thursday, March 12th. UBS Group boosted their price target on shares of Alcoa from $48.00 to $70.00 and gave the stock a "neutral" rating in a research note on Thursday, March 12th. Finally, Zacks Research upgraded shares of Alcoa from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 10th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Alcoa presently has an average rating of "Hold" and a consensus target price of $64.27.

Alcoa Stock Up 0.8%

Shares of NYSE:AA opened at $63.14 on Friday. The stock's 50-day moving average price is $65.08 and its 200-day moving average price is $55.44. Alcoa has a 12-month low of $25.78 and a 12-month high of $75.70. The stock has a market capitalization of $16.66 billion, a P/E ratio of 15.99 and a beta of 1.51. The company has a current ratio of 1.48, a quick ratio of 0.88 and a debt-to-equity ratio of 0.36.

Alcoa (NYSE:AA - Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The company had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same period last year, the business posted $2.15 earnings per share. The firm's quarterly revenue was down 5.2% compared to the same quarter last year. On average, equities analysts anticipate that Alcoa will post 7.95 earnings per share for the current year.

Hedge Funds Weigh In On Alcoa

Several hedge funds have recently added to or reduced their stakes in AA. NewEdge Advisors LLC grew its holdings in Alcoa by 1,098.0% during the 1st quarter. NewEdge Advisors LLC now owns 11,704 shares of the industrial products company's stock valued at $357,000 after purchasing an additional 10,727 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Alcoa by 0.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 646,609 shares of the industrial products company's stock worth $19,722,000 after acquiring an additional 4,624 shares in the last quarter. Invesco Ltd. grew its stake in Alcoa by 1.9% in the 2nd quarter. Invesco Ltd. now owns 640,528 shares of the industrial products company's stock worth $18,902,000 after acquiring an additional 12,008 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Alcoa by 173.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,040 shares of the industrial products company's stock worth $60,000 after acquiring an additional 1,295 shares in the last quarter. Finally, First Trust Advisors LP grew its stake in Alcoa by 320.1% in the 2nd quarter. First Trust Advisors LP now owns 269,982 shares of the industrial products company's stock worth $7,967,000 after acquiring an additional 205,717 shares in the last quarter.

Alcoa Company Profile

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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