Alcoa (NYSE:AA) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Alcoa from “strong sell” to “hold,” while the broader analyst consensus remains “Hold” with an average price target of $61.09.
• Alcoa’s stock opened at $46.51, well below its 12-month high of $84.38. The company recently reported quarterly EPS of $2.12, missing estimates of $2.25, and revenue of $3.97 billion, slightly below expectations.
• Two Alcoa executive vice presidents recently sold company shares, while several institutional investors increased their positions during the second quarter.

Alcoa (NYSE:AA - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

Several other analysts have also commented on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Alcoa in a research report on Monday. Argus lowered their price objective on Alcoa from $73.00 to $55.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Wall Street Zen raised Alcoa from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Bank of America cut their target price on Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a research note on Thursday, July 9th. Finally, JPMorgan Chase & Co. reduced their target price on Alcoa from $55.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, July 17th. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $61.09.

Alcoa Price Performance

Alcoa stock opened at $46.51 on Monday. Alcoa has a 12-month low of $30.81 and a 12-month high of $84.38. The stock has a market cap of $12.27 billion, a P/E ratio of 9.57, a PEG ratio of 0.53 and a beta of 1.63. The company has a 50-day moving average price of $48.50 and a 200 day moving average price of $59.01. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30.

Alcoa (NYSE:AA - Get Free Report) last issued its earnings results on Thursday, July 16th. The industrial products company reported $2.12 EPS for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). Alcoa had a return on equity of 18.90% and a net margin of 9.48%.The firm had revenue of $3.97 billion for the quarter, compared to analysts' expectations of $3.99 billion. During the same period last year, the firm earned $0.39 earnings per share. Sell-side analysts anticipate that Alcoa will post 6.55 earnings per share for the current year.

Insider Transactions at Alcoa

In other Alcoa news, EVP Tammi Jones sold 15,628 shares of Alcoa stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $50.60, for a total value of $790,776.80. Following the completion of the transaction, the executive vice president directly owned 39,819 shares of the company's stock, valued at $2,014,841.40. The trade was a 28.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Renato Bacchi sold 700 shares of Alcoa stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $51.02, for a total value of $35,714.00. Following the completion of the transaction, the executive vice president directly owned 74,930 shares of the company's stock, valued at approximately $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Investors Weigh In On Alcoa

Several large investors have recently added to or reduced their stakes in AA. Core Capital Management & Research inc. purchased a new position in Alcoa in the 2nd quarter valued at approximately $259,000. Sequoia Financial Advisors LLC increased its position in shares of Alcoa by 43.2% during the second quarter. Sequoia Financial Advisors LLC now owns 8,964 shares of the industrial products company's stock worth $467,000 after acquiring an additional 2,706 shares during the period. NewEdge Advisors LLC raised its stake in shares of Alcoa by 26.5% in the second quarter. NewEdge Advisors LLC now owns 11,113 shares of the industrial products company's stock valued at $579,000 after acquiring an additional 2,325 shares in the last quarter. Baird Financial Group Inc. raised its stake in shares of Alcoa by 14.4% in the second quarter. Baird Financial Group Inc. now owns 19,182 shares of the industrial products company's stock valued at $1,000,000 after acquiring an additional 2,421 shares in the last quarter. Finally, Arizona State Retirement System raised its stake in shares of Alcoa by 2.3% in the second quarter. Arizona State Retirement System now owns 72,807 shares of the industrial products company's stock valued at $3,796,000 after acquiring an additional 1,652 shares in the last quarter.

About Alcoa

Alcoa Corporation NYSE: AA is a global producer of bauxite, alumina and aluminum. Its operations span the aluminum value chain, including bauxite mining, alumina refining, aluminum smelting, casting and the production of select value-added aluminum products. The company serves customers in industries such as transportation, aerospace, construction, packaging, consumer products and energy.

Founded in 1888 as the Pittsburgh Reduction Company, Alcoa played a major role in developing the commercial aluminum industry and adopted the Alcoa name in 1907.

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