Alcoa (NYSE:AA) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Alcoa to “strong-buy” from “buy,” while broader analyst sentiment remains mixed: seven analysts rate it Buy, five Hold, and one Sell, producing an average rating of Hold and an average price target of $62.17.
• Alcoa’s latest quarterly results beat expectations, with EPS of $1.82 versus the $1.51 consensus estimate and revenue of $3.70 billion, up 23.7% year over year.
• Shares opened at $41.45, well below the 52-week high of $84.38; the company also reported stronger operations and cash generation, declared a $0.10 quarterly dividend, and advanced asset-sale and South32-related transactions.

Alcoa (NYSE:AA - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday, Wall Street Zen reports.

AA has been the subject of several other research reports. Barclays started coverage on shares of Alcoa in a research report on Wednesday. They set an "overweight" rating and a $55.00 price objective for the company. Zacks Research upgraded shares of Alcoa from a "strong sell" rating to a "hold" rating in a research report on Monday, September 14th. B. Riley Financial dropped their target price on shares of Alcoa from $92.00 to $80.00 and set a "buy" rating on the stock in a research report on Tuesday, July 7th. JPMorgan Chase & Co. cut their target price on shares of Alcoa from $52.00 to $50.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. Finally, Bank of America cut their target price on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a research note on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $62.17.

Alcoa Stock Performance

NYSE:AA opened at $41.45 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. Alcoa has a fifty-two week low of $35.12 and a fifty-two week high of $84.38. The company has a 50 day simple moving average of $46.92 and a two-hundred day simple moving average of $56.04. The company has a market capitalization of $10.94 billion, a PE ratio of 7.16, a P/E/G ratio of 0.50 and a beta of 1.74.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings results on Thursday, October 15th. The industrial products company reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.51 by $0.31. Alcoa had a net margin of 10.77% and a return on equity of 25.92%. The firm had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.77 billion. During the same quarter in the previous year, the company earned $0.88 EPS. The company's revenue for the quarter was up 23.7% on a year-over-year basis. Research analysts anticipate that Alcoa will post 6.69 earnings per share for the current year.

Insider Transactions at Alcoa

In other Alcoa news, EVP Renato Bacchi sold 700 shares of the 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 sale, the executive vice president owned 74,930 shares in the company, valued at approximately $3,822,928.60. This trade represents a 0.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Tammi Jones sold 15,628 shares of the business's stock in a transaction that occurred on 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 owned 39,819 shares in the company, valued at $2,014,841.40. The trade was a 28.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Shelton Wealth Management LLC increased its holdings in Alcoa by 24.7% during the third quarter. Shelton Wealth Management LLC now owns 17,693 shares of the industrial products company's stock worth $743,000 after buying an additional 3,507 shares during the last quarter. Assenagon Asset Management S.A. boosted its stake in Alcoa by 1,498.8% in the third quarter. Assenagon Asset Management S.A. now owns 717,838 shares of the industrial products company's stock valued at $30,149,000 after acquiring an additional 672,939 shares during the last quarter. GAMMA Investing LLC boosted its stake in Alcoa by 10.4% in the third quarter. GAMMA Investing LLC now owns 6,852 shares of the industrial products company's stock valued at $288,000 after acquiring an additional 646 shares during the last quarter. YHB Investment Advisors Inc. grew its position in shares of Alcoa by 3.2% during the 3rd quarter. YHB Investment Advisors Inc. now owns 9,569 shares of the industrial products company's stock valued at $402,000 after acquiring an additional 301 shares during the period. Finally, Ausbil Investment Management Ltd bought a new position in shares of Alcoa during the 3rd quarter valued at approximately $588,000.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Profit more than doubled. Alcoa reported third-quarter net income of $483 million, up from $232 million a year earlier, while adjusted earnings per share of $1.82 exceeded analysts’ expectations of approximately $1.51–$1.54. Revenue rose 23.7% year over year to $3.704 billion. Alcoa rallies after posting higher Q3 profit
• Positive Sentiment: Operations and cash generation improved. Higher aluminum production, better refinery performance and strong quarterly free cash flow supported investor confidence. Management reaffirmed full-year production and shipment guidance across alumina and aluminum. Why Alcoa Stock Popped on Friday
• Positive Sentiment: Asset monetization provides a potential cash boost. Alcoa agreed to sell portions of its Massena East site for as much as $315 million, including land intended for data-center development. The transaction supports the company’s goal of monetizing $500 million to $1 billion of assets by 2030. Alcoa plans to sell part of its Massena East site
• Positive Sentiment: South32 transaction advanced. South32 shareholders approved Alcoa’s planned acquisition of assets in Australia, Brazil and South Africa. Alcoa has completed $2.6 billion in debt financing, with the multibillion-dollar AliGroup deal targeted to close in the first half of 2027. Alcoa key takeaways for long-term investors
• Positive Sentiment: Shareholder returns continued. The board declared a quarterly dividend of $0.10 per share, payable November 13 to investors of record October 27. Barclays also initiated coverage with an Overweight rating and a $55 price target. Alcoa declares quarterly cash dividend

Alcoa Company Profile

Alcoa Corporation NYSE: AA is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.

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