Alcoa Sees Unusually High Options Volume (NYSE:AA)

Key Points

• Alcoa experienced a 79% increase in options trading volume, with 41,151 call options bought, significantly surpassing the typical daily volume of 22,990.
• The company's stock rose 16.4% to $41.51 amid heavy trading volume, reflecting strong investor interest.
• Alcoa announced a quarterly dividend of $0.10 per share, with payment scheduled for November 21st, representing a 1.0% yield.

Alcoa (NYSE:AA - Get Free Report) was the target of unusually large options trading on Thursday. Investors bought 41,151 call options on the company. This is an increase of 79% compared to the typical daily volume of 22,990 call options.

Alcoa Stock Up 16.4%

Shares of NYSE AA traded up $5.86 during mid-day trading on Thursday, hitting $41.51. 12,911,011 shares of the stock traded hands, compared to its average volume of 6,115,142. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.65. Alcoa has a 52 week low of $21.53 and a 52 week high of $47.77. The company has a market cap of $10.75 billion, a price-to-earnings ratio of 10.84, a PEG ratio of 0.24 and a beta of 2.20. The stock has a fifty day moving average price of $33.12 and a 200-day moving average price of $29.78.

Alcoa (NYSE:AA - Get Free Report) last released its quarterly earnings results on Wednesday, October 22nd. The industrial products company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.15) by $0.13. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.03 billion. During the same period in the previous year, the company posted $0.57 earnings per share. The firm's revenue was up 3.1% on a year-over-year basis. Research analysts anticipate that Alcoa will post 4.43 EPS for the current year.

Alcoa Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 21st. Investors of record on Tuesday, November 4th will be given a dividend of $0.10 per share. The ex-dividend date is Tuesday, November 4th. This represents a $0.40 annualized dividend and a dividend yield of 1.0%. Alcoa's payout ratio is currently 10.44%.

Institutional Investors Weigh In On Alcoa

Hedge funds have recently added to or reduced their stakes in the stock. IFP Advisors Inc increased its holdings in shares of Alcoa by 1,096.0% during the second quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 822 shares in the last quarter. Horrell Capital Management Inc. purchased a new position in shares of Alcoa in the 2nd quarter worth about $30,000. Montag A & Associates Inc. purchased a new position in shares of Alcoa in the 1st quarter worth about $40,000. Heartwood Wealth Advisors LLC purchased a new position in shares of Alcoa in the 3rd quarter worth about $53,000. Finally, Quarry LP purchased a new position in shares of Alcoa in the 1st quarter worth about $57,000.

Analysts Set New Price Targets

A number of equities analysts have commented on AA shares. Bank of America lifted their price target on Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research note on Thursday, July 17th. B. Riley lifted their price target on Alcoa from $38.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday, September 23rd. Weiss Ratings upgraded Alcoa from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. HSBC lifted their price objective on Alcoa from $33.00 to $41.00 and gave the stock a "buy" rating in a research report on Friday, October 17th. Finally, Wells Fargo & Company initiated coverage on Alcoa in a research report on Tuesday, October 7th. They issued an "overweight" rating and a $40.00 price objective on the stock. Seven research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $42.04.

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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