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

Alcoa Co. (NYSE:AA - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $26.77, but opened at $26.15. Alcoa shares last traded at $25.93, with a volume of 2,036,546 shares.

Wall Street Analysts Forecast Growth

AA has been the subject of a number of recent research reports. HC Wainwright increased their price objective on Alcoa to $90.00 and gave the company a "buy" rating in a research report on Tuesday, March 11th. Bank of America reaffirmed an "underperform" rating and set a $26.00 target price (down from $58.00) on shares of Alcoa in a report on Tuesday, April 8th. B. Riley dropped their price target on Alcoa from $44.00 to $43.00 and set a "buy" rating on the stock in a research note on Thursday, April 17th. Q1 EBITDA beat expectations, Q2 EBITDA estimate raised to 439M from 351M Wall Street Zen downgraded Alcoa from a "buy" rating to a "hold" rating in a report on Thursday, May 22nd. Finally, Barclays raised their target price on shares of Alcoa to $31.00 and gave the stock a "hold" rating in a report on Friday, May 16th. One analyst has rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, Alcoa presently has a consensus rating of "Hold" and a consensus target price of $42.50.

Alcoa Trading Up 0.5%

The company has a quick ratio of 0.86, a current ratio of 1.45 and a debt-to-equity ratio of 0.48. The company has a 50-day moving average price of $26.31 and a 200-day moving average price of $33.55. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of -175.06, a P/E/G ratio of 0.19 and a beta of 2.26.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Wednesday, April 16th. The industrial products company reported $2.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.73 by $0.42. Alcoa had a return on equity of 5.54% and a net margin of 0.50%. The firm had revenue of $3.37 billion for the quarter, compared to analyst estimates of $3.58 billion. Research analysts predict that Alcoa Co. will post 4.43 EPS for the current fiscal year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Tuesday, May 20th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 1.43%. The ex-dividend date of this dividend is Tuesday, May 20th. Alcoa's dividend payout ratio (DPR) is presently 12.05%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Trust Point Inc. grew its holdings in shares of Alcoa by 24.8% during the 4th quarter. Trust Point Inc. now owns 8,591 shares of the industrial products company's stock worth $325,000 after purchasing an additional 1,707 shares in the last quarter. Ninety One UK Ltd increased its holdings in Alcoa by 39.5% in the 4th quarter. Ninety One UK Ltd now owns 498,574 shares of the industrial products company's stock valued at $18,836,000 after buying an additional 141,261 shares during the period. Advisors Preferred LLC acquired a new position in shares of Alcoa in the 4th quarter valued at $1,069,000. Wilmington Savings Fund Society FSB lifted its holdings in shares of Alcoa by 5.3% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 6,521 shares of the industrial products company's stock worth $246,000 after acquiring an additional 328 shares during the period. Finally, Empowered Funds LLC acquired a new stake in shares of Alcoa during the 4th quarter valued at about $259,000. Institutional investors and hedge funds own 82.39% of the company's stock.

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.