Alcoa (NYSE:AA) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Consensus "Hold" — Twelve analysts give Alcoa an average rating of Hold (1 sell, 6 hold, 4 buy, 1 strong buy) with a mean 1‑year price target of $64.27.
• Analyst views are mixed but some raised targets recently, notably B. Riley to $96 and Citigroup to $76, while BMO and Argus set targets near $75 and $73 respectively.
• Q1 miss and valuation — Alcoa reported EPS $1.40 vs. $1.60 expected and revenue $3.19B vs. $3.35B, trades around $63 with a market cap of $16.66B, PE ≈16, 52‑week range $23.60–$75.70, and a 0.6% dividend yield.

Shares of Alcoa (NYSE:AA - Get Free Report) have received an average rating of "Hold" from the twelve research firms that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $64.2727.

A number of analysts have recently issued reports on AA shares. Argus set a $73.00 target price on shares of Alcoa in a research note on Monday. B. Riley Financial raised their target price on shares of Alcoa from $78.00 to $96.00 and gave the stock a "buy" rating in a research note on Tuesday, April 7th. BMO Capital Markets raised their target price on shares of Alcoa from $65.00 to $75.00 and gave the stock a "market perform" rating in a research note on Thursday, April 9th. Citigroup raised their target price on shares of Alcoa from $54.00 to $76.00 and gave the stock a "buy" rating in a research note on Monday, March 16th. Finally, Wells Fargo & Company set a $68.00 target price on shares of Alcoa in a research note on Thursday, March 12th.

Institutional Trading of Alcoa

Hedge funds and other institutional investors have recently bought and sold shares of the business. Basepoint Wealth LLC acquired a new stake in Alcoa in the 4th quarter worth about $25,000. Advisory Services Network LLC acquired a new stake in Alcoa in the 3rd quarter worth about $27,000. Raleigh Capital Management Inc. raised its stake in Alcoa by 52,500.0% in the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock worth $28,000 after purchasing an additional 525 shares in the last quarter. Root Financial Partners LLC acquired a new stake in Alcoa in the 3rd quarter worth about $29,000. Finally, CoreCap Advisors LLC raised its stake in Alcoa by 74.1% in the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock worth $30,000 after purchasing an additional 237 shares in the last quarter.

Alcoa Stock Performance

NYSE AA opened at $63.14 on Wednesday. The firm has a 50-day moving average of $64.80 and a 200-day moving average of $54.50. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48. The stock has a market cap of $16.66 billion, a PE ratio of 15.98 and a beta of 1.70. Alcoa has a 52-week low of $23.60 and a 52-week high of $75.70.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results 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). The company had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The business's quarterly revenue was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.15 EPS. On average, sell-side analysts anticipate that Alcoa will post 7.66 EPS for the current year.

Alcoa Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Tuesday, March 10th. Alcoa's dividend payout ratio (DPR) is currently 10.13%.

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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