Alcoa (NYSE:AA) Shares Gap Down - Should You Sell?

Alcoa Co. (NYSE:AA - Get Free Report)'s share price gapped down prior to trading 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 traded.

Wall Street Analyst Weigh In

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

Alcoa Trading Down 1.2%

The company has a current ratio of 1.45, a quick ratio of 0.86 and a debt-to-equity ratio of 0.48. The company has a fifty day moving average price of $26.36 and a two-hundred day moving average price of $33.66. The firm has a market capitalization of $7.08 billion, a price-to-earnings ratio of -170.88, a PEG ratio of 0.19 and a beta of 2.29.

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

Alcoa Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Tuesday, May 20th will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, May 20th. This represents a $0.40 annualized dividend and a dividend yield of 1.46%. Alcoa's payout ratio is 12.05%.

Institutional Investors Weigh In On Alcoa

Hedge funds have recently modified their holdings of the company. Bessemer Group Inc. raised its stake in Alcoa by 77.1% during the fourth quarter. Bessemer Group Inc. now owns 680 shares of the industrial products company's stock worth $26,000 after purchasing an additional 296 shares during the period. Versant Capital Management Inc increased its holdings in shares of Alcoa by 134.7% during the 1st quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock worth $28,000 after buying an additional 520 shares during the last quarter. SBI Securities Co. Ltd. purchased a new stake in shares of Alcoa during the 4th quarter valued at approximately $29,000. Point72 Hong Kong Ltd acquired a new position in Alcoa in the fourth quarter valued at approximately $36,000. Finally, Smartleaf Asset Management LLC lifted its holdings in Alcoa by 59.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,051 shares of the industrial products company's stock valued at $39,000 after acquiring an additional 393 shares during the last quarter. Hedge funds and other institutional investors own 82.39% of the company's stock.

Alcoa Company Profile

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.