Alcoa (NYSE:AA) Stock Price Up 5.4% - Here's What Happened

Key Points

• Alcoa's stock price rose by 5.4% to $35.63 during mid-day trading, with a notable drop in trading volume compared to its average.
• Analyst ratings are mixed, with six analysts rating it as a "Buy," and a consensus price target of $42.27.
• Alcoa announced a quarterly dividend of $0.10 per share, reflecting a yield of 1.1% and a payout ratio of 10.44%.

Alcoa (NYSE:AA - Get Free Report) shares rose 5.4% during mid-day trading on Tuesday . The company traded as high as $35.00 and last traded at $35.63. Approximately 3,126,455 shares were traded during trading, a decline of 47% from the average daily volume of 5,951,052 shares. The stock had previously closed at $33.79.

Analyst Upgrades and Downgrades

A number of research firms have commented on AA. Wall Street Zen downgraded shares of Alcoa from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. Bank of America lifted their price objective on shares of Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a report on Thursday, July 17th. UBS Group raised their target price on Alcoa from $31.00 to $34.00 and gave the company a "neutral" rating in a research note on Friday, September 19th. Citigroup upgraded shares of Alcoa to a "buy" rating and set a $42.00 price objective on the stock in a research note on Tuesday, July 8th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating on the stock in a research note on Thursday, July 17th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $42.27.

Alcoa Trading Up 5.3%

The company has a fifty day simple moving average of $31.56 and a 200-day simple moving average of $29.28. The company has a current ratio of 1.65, a quick ratio of 0.97 and a debt-to-equity ratio of 0.41. The stock has a market cap of $9.21 billion, a price-to-earnings ratio of 9.29, a P/E/G ratio of 0.21 and a beta of 2.20.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.10. The firm had revenue of $3.02 billion for the quarter, compared to the consensus estimate of $2.96 billion. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The business's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.16 EPS. On average, research analysts forecast that Alcoa will post 4.43 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

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

Hedge Funds Weigh In On Alcoa

Institutional investors and hedge funds have recently bought and sold shares of the business. Wealth Enhancement Advisory Services LLC grew its stake in Alcoa by 61.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 16,914 shares of the industrial products company's stock valued at $516,000 after acquiring an additional 6,447 shares in the last quarter. Public Employees Retirement System of Ohio grew its stake in Alcoa by 5.6% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 80,223 shares of the industrial products company's stock valued at $2,367,000 after acquiring an additional 4,255 shares in the last quarter. Strs Ohio bought a new stake in shares of Alcoa in the 1st quarter valued at approximately $841,000. GAMMA Investing LLC grew its stake in shares of Alcoa by 58.8% in the 1st quarter. GAMMA Investing LLC now owns 2,298 shares of the industrial products company's stock valued at $70,000 after buying an additional 851 shares in the last quarter. Finally, Voya Investment Management LLC grew its stake in shares of Alcoa by 4.3% in the 1st quarter. Voya Investment Management LLC now owns 1,176,886 shares of the industrial products company's stock valued at $35,895,000 after buying an additional 48,604 shares in the last quarter.

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.

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