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

Key Points

• Consensus "Hold" — Thirteen analysts cover Alcoa with a split of 2 sells, 6 holds and 5 buys, producing a consensus 12‑month price target of $48.25 and mixed recent target moves (e.g., Citi $54 buy, Wells Fargo cut to $64).
• Earnings beat but mixed fundamentals — Alcoa reported $1.26 EPS vs. $0.95 expected and revenue $6.75B vs. $3.28B expected, though revenue was down 1.1% YoY; shares trade around $61.15 (P/E ~13.8) with a modest 0.7% dividend yield.

Shares of Alcoa (NYSE:AA - Get Free Report) have been given a consensus recommendation of "Hold" by the thirteen research firms that are currently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and five have assigned a buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $48.25.

A number of research firms have recently commented on AA. Wells Fargo & Company reduced their price target on shares of Alcoa from $71.00 to $64.00 and set an "equal weight" rating for the company in a research report on Friday, January 23rd. B. Riley Financial restated a "buy" rating on shares of Alcoa in a research report on Friday, January 23rd. JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $50.00 price target (up from $45.00) on shares of Alcoa in a report on Thursday, January 8th. UBS Group boosted their price objective on Alcoa from $42.00 to $48.00 and gave the stock a "neutral" rating in a report on Friday, December 12th. Finally, Citigroup raised their target price on shares of Alcoa from $42.00 to $54.00 and gave the company a "buy" rating in a research note on Friday, December 19th.

Alcoa Stock Performance

NYSE:AA opened at $61.15 on Tuesday. The business's fifty day moving average is $60.74 and its 200 day moving average is $46.08. The firm has a market cap of $16.13 billion, a price-to-earnings ratio of 13.84 and a beta of 1.85. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.87 and a current ratio of 1.44. Alcoa has a 52-week low of $21.53 and a 52-week high of $68.40.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Thursday, January 22nd. The industrial products company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.31. The business had revenue of $6.75 billion during the quarter, compared to analyst estimates of $3.28 billion. Alcoa had a return on equity of 16.19% and a net margin of 9.12%.The company's quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.04 EPS. Research analysts predict that Alcoa will post 4.43 EPS for the current year.

Alcoa Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 10th will be given a $0.10 dividend. The ex-dividend date is Tuesday, March 10th. This represents a $0.40 annualized dividend and a yield of 0.7%. Alcoa's payout ratio is 9.05%.

Institutional Investors Weigh In On Alcoa

Hedge funds have recently added to or reduced their stakes in the company. Mirabella Financial Services LLP increased its position in shares of Alcoa by 12,233.1% during the 3rd quarter. Mirabella Financial Services LLP now owns 40,082,462 shares of the industrial products company's stock valued at $1,318,312,000 after purchasing an additional 39,757,462 shares during the last quarter. Bank of New York Mellon Corp grew its position in Alcoa by 211.7% during the fourth quarter. Bank of New York Mellon Corp now owns 6,254,017 shares of the industrial products company's stock valued at $332,338,000 after acquiring an additional 4,247,559 shares during the last quarter. Castle Hook Partners LP bought a new position in Alcoa during the fourth quarter valued at approximately $210,874,000. Norges Bank purchased a new position in shares of Alcoa during the second quarter worth approximately $97,933,000. Finally, Maple Rock Capital Partners Inc. bought a new stake in shares of Alcoa in the 4th quarter worth approximately $173,412,000.

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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