Alcoa (NYSE:AA) Shares Down 4.1% - Here's Why

Key Points

• Alcoa's shares fell 4.1% to $29.99, with trading volume significantly declining by 67% from its average.
• Analyst updates included a downgrade to "hold" from Wall Street Zen, while Citigroup upgraded Alcoa to a "buy" with a $42.00 target price.
• The company recently declared a quarterly dividend of $0.10 per share, with a yield of 1.3% and a payout ratio of 10.44%.

Alcoa (NYSE:AA - Get Free Report)'s share price traded down 4.1% during mid-day trading on Monday . The company traded as low as $29.89 and last traded at $29.99. 1,943,096 shares were traded during trading, a decline of 67% from the average session volume of 5,948,981 shares. The stock had previously closed at $31.27.

Analyst Ratings Changes

A number of analysts recently issued reports on AA shares. Wall Street Zen downgraded Alcoa from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. JPMorgan Chase & Co. lowered their target price on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday, July 17th. Citigroup upgraded shares of Alcoa to a "buy" rating and set a $42.00 price target on the stock in a report on Tuesday, July 8th. Bank of America increased their price objective on shares of Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research report on Thursday, July 17th. Finally, B. Riley cut their target price on Alcoa from $38.00 to $37.00 and set a "buy" rating on the stock in a research note on Tuesday, July 15th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $41.23.

Alcoa Stock Performance

The firm's 50 day moving average is $29.90 and its 200 day moving average is $29.89. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.65. The stock has a market cap of $7.68 billion, a P/E ratio of 7.74, a price-to-earnings-growth ratio of 0.18 and a beta of 2.24.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, topping 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 business had revenue of $3.02 billion for the quarter, compared to the consensus estimate of $2.96 billion. During the same period in the prior year, the firm posted $0.16 earnings per share. The business's quarterly revenue was up 3.9% on a year-over-year basis. Analysts anticipate that Alcoa will post 4.43 EPS for the current 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 given a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $0.40 dividend on an annualized basis and a yield of 1.3%. Alcoa's dividend payout ratio (DPR) is currently 10.44%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. IFP Advisors Inc boosted its stake in shares of Alcoa by 1,096.0% in the second quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock worth $26,000 after buying an additional 822 shares during the last quarter. Versant Capital Management Inc boosted its position in Alcoa by 134.7% in the 1st quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock worth $28,000 after purchasing an additional 520 shares in the last quarter. Point72 Hong Kong Ltd acquired a new stake in shares of Alcoa during the 4th quarter worth approximately $36,000. Horrell Capital Management Inc. acquired a new position in shares of Alcoa in the 2nd quarter valued at $30,000. Finally, Montag A & Associates Inc. purchased a new stake in Alcoa during the first quarter worth $40,000.

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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