Alcoa (NYSE:AA) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Alcoa has received a consensus rating of "Hold" from thirteen analysts, with one sell rating, five holds, and seven buy ratings.
• The average one-year target price for Alcoa is $43.04, with several analysts adjusting their target prices upwards.
• Alcoa reported earnings of $0.39 per share, exceeding expectations, and its quarterly revenue increased by 3.9% compared to the same period last year.

Alcoa (NYSE:AA - Get Free Report) has been given a consensus recommendation of "Hold" by the thirteen ratings firms that are covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $43.0417.

A number of research analysts recently weighed in on the company. UBS Group lifted their target price on Alcoa from $31.00 to $34.00 and gave the company a "neutral" rating in a report on Friday, September 19th. B. Riley lifted their target price on Alcoa from $38.00 to $40.00 and gave the company a "buy" rating in a report on Tuesday, September 23rd. Weiss Ratings upgraded Alcoa from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday. Wells Fargo & Company assumed coverage on Alcoa in a report on Tuesday. They issued an "overweight" rating and a $40.00 target price on the stock. Finally, JPMorgan Chase & Co. lifted their target price on Alcoa from $27.00 to $34.00 and gave the company a "neutral" rating in a report on Thursday.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AA. IFP Advisors Inc raised its position in Alcoa by 1,096.0% in the second quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 822 shares during the period. Horrell Capital Management Inc. purchased a new position in Alcoa in the second quarter valued at about $30,000. Montag A & Associates Inc. purchased a new position in Alcoa in the first quarter valued at about $40,000. Heartwood Wealth Advisors LLC purchased a new position in Alcoa in the third quarter valued at about $53,000. Finally, Quarry LP purchased a new position in Alcoa in the first quarter valued at about $57,000.

Alcoa Price Performance

AA stock opened at $35.05 on Friday. Alcoa has a 52-week low of $21.53 and a 52-week high of $47.77. The stock's fifty day simple moving average is $32.07 and its 200-day simple moving average is $29.41. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $9.07 billion, a price-to-earnings ratio of 9.15, a price-to-earnings-growth ratio of 0.23 and a beta of 2.20.

Alcoa (NYSE:AA - Get Free Report) last issued its 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. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The firm had revenue of $3.02 billion for the quarter, compared to analysts' expectations of $2.96 billion. During the same quarter last year, the firm earned $0.16 earnings per share. The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. Equities research analysts expect that Alcoa will post 4.43 EPS for the current year.

Alcoa Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Tuesday, August 12th were given a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $0.40 annualized dividend and a yield of 1.1%. Alcoa's dividend payout ratio (DPR) is 10.44%.

About Alcoa

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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