Alcoa Sees Unusually Large Options Volume (NYSE:AA)

Key Points

• Unusual options activity hit Alcoa, with traders buying 31,983 call contracts on Friday — about 68% above its average daily call volume, suggesting heightened interest in the stock.
• Alcoa shares fell sharply after the company missed Q2 earnings expectations, reporting $2.12 EPS versus $2.25 expected, even though revenue came in roughly in line at $3.97 billion.
• The company also cut its 2026 alumina output guidance to 9.5 million-9.6 million metric tons because of refinery issues, adding to near-term pressure despite some longer-term positive operational updates.

Alcoa (NYSE:AA - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders purchased 31,983 call options on the company. This is an increase of 68% compared to the average daily volume of 19,062 call options.

Alcoa Price Performance

Shares of Alcoa stock traded down $3.01 on Friday, hitting $43.84. The company had a trading volume of 11,662,707 shares, compared to its average volume of 6,463,288. Alcoa has a 52 week low of $28.11 and a 52 week high of $84.38. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.48 and a quick ratio of 0.88. The company has a market cap of $11.57 billion, a PE ratio of 11.10, a PEG ratio of 0.52 and a beta of 1.63. The business has a 50-day simple moving average of $62.09 and a 200-day simple moving average of $62.59.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). The firm had revenue of $3.97 billion during the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a return on equity of 12.57% and a net margin of 8.27%.During the same quarter last year, the company earned $0.39 earnings per share. Research analysts expect that Alcoa will post 6.93 EPS for the current fiscal year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 19th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa's payout ratio is presently 10.13%.

Hedge Funds Weigh In On Alcoa

Hedge funds have recently made changes to their positions in the business. Handelsbanken Fonder AB grew its position in Alcoa by 51.9% in the second quarter. Handelsbanken Fonder AB now owns 57,100 shares of the industrial products company's stock worth $2,977,000 after buying an additional 19,500 shares during the last quarter. GAMMA Investing LLC lifted its position in shares of Alcoa by 12.3% during the 2nd quarter. GAMMA Investing LLC now owns 6,206 shares of the industrial products company's stock valued at $324,000 after acquiring an additional 678 shares during the last quarter. Empowered Funds LLC lifted its position in shares of Alcoa by 64.6% during the 1st quarter. Empowered Funds LLC now owns 118,039 shares of the industrial products company's stock valued at $7,830,000 after acquiring an additional 46,332 shares during the last quarter. Lombard Odier Asset Management Europe Ltd boosted its stake in shares of Alcoa by 90.9% during the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 90,258 shares of the industrial products company's stock worth $5,987,000 after acquiring an additional 42,979 shares in the last quarter. Finally, Parallel Advisors LLC boosted its stake in shares of Alcoa by 40.2% during the 1st quarter. Parallel Advisors LLC now owns 4,677 shares of the industrial products company's stock worth $310,000 after acquiring an additional 1,340 shares in the last quarter.

Key Stories Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa posted record quarterly revenue and highlighted strong operational performance, including progress on multiple smelter capacity restarts and higher aluminum EBITDA, which supports the long-term growth story. Alcoa Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: Management outlined roughly $900 million in net present value from AliGroup synergies and said it is strengthening Alcoa’s upstream portfolio through the South32 acquisition strategy, a potential catalyst for future earnings power. Alcoa outlines ~$900M NPV AliGroup synergies...
• Neutral Sentiment: Unusually heavy options activity suggests traders are positioning for a larger move in AA, but the flow does not clearly point to a bullish or bearish thesis. AA Stock Dips as Alcoa Cuts Aluminum Production Guidance
• Negative Sentiment: Alcoa missed Q2 earnings estimates, reporting $2.12 EPS versus $2.25 expected, which weighed on sentiment despite improved year-over-year performance. Alcoa Stock Sinks On Q2 Earnings Miss: Details
• Negative Sentiment: The company cut its 2026 alumina output outlook to 9.5 million-9.6 million metric tons after Pinjarra refinery issues, a key operational setback that is driving the stock lower today. Alcoa Cuts Full-Year Alumina Guidance, Posts Higher Second-Quarter Profit
• Negative Sentiment: Analysts responded by trimming price targets, including JPMorgan, reinforcing concerns that near-term fundamentals may remain pressured. Analyst price target changes

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Bank of America cut their price target on Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a report on Thursday, July 9th. Royal Bank Of Canada set a $70.00 target price on Alcoa in a research report on Wednesday, July 1st. Weiss Ratings raised Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 17th. BMO Capital Markets reduced their price target on Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a research report on Friday. Finally, Morgan Stanley reissued an "equal weight" rating and issued a $53.00 price target (down from $79.00) on shares of Alcoa in a research note on Wednesday, July 8th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $62.73.

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company's operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa's product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.

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