Alcoa (NYSE:AA) Stock Price Target Cut by B. Riley Financial

Key Points

• B. Riley Financial lowered Alcoa’s price target from $80 to $63 while maintaining a “buy” rating, implying 54.2% upside from the prior close.
• Alcoa shares fell 2.0% to $40.85, below their 50-day and 200-day moving averages. Analysts’ consensus rating remains “Hold,” with an average target price of $59.77.
• Alcoa’s latest quarterly results beat expectations on earnings, reporting $1.82 EPS versus the $1.51 consensus, while revenue rose 23.7% year over year to $3.70 billion but came in slightly below estimates.

Alcoa (NYSE:AA - Get Free Report) had its price objective cut by investment analysts at B. Riley Financial from $80.00 to $63.00 in a note issued to investors on Tuesday, Benzinga reports. The firm currently has a "buy" rating on the industrial products company's stock. B. Riley Financial's price objective suggests a potential upside of 54.20% from the company's previous close.

Several other brokerages also recently issued reports on AA. Morgan Stanley decreased their price objective on shares of Alcoa from $53.00 to $50.00 and set an "equal weight" rating for the company in a research note on Wednesday, October 7th. JPMorgan Chase & Co. dropped their target price on Alcoa from $52.00 to $50.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Alcoa in a research note on Monday, September 14th. Wells Fargo & Company reiterated an "overweight" rating on shares of Alcoa in a report on Friday. Finally, BMO Capital Markets reduced their price target on Alcoa from $60.00 to $55.00 and set a "market perform" rating on the stock in a report on Friday, July 17th. Seven analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $59.77.

Alcoa Trading Down 2.0%

Shares of AA traded down $0.81 during midday trading on Tuesday, hitting $40.85. The stock had a trading volume of 2,332,246 shares, compared to its average volume of 5,873,803. Alcoa has a 1 year low of $35.12 and a 1 year high of $84.38. The firm has a market cap of $10.78 billion, a PE ratio of 7.05, a price-to-earnings-growth ratio of 0.51 and a beta of 1.74. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.31 and a quick ratio of 1.66. The stock's 50 day moving average is $46.72 and its 200 day moving average is $55.82.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Thursday, October 15th. The industrial products company reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.31. The firm had revenue of $3.70 billion during the quarter, compared to analyst estimates of $3.77 billion. Alcoa had a net margin of 10.77% and a return on equity of 24.58%. The business's revenue was up 23.7% on a year-over-year basis. During the same quarter last year, the business earned $0.88 EPS. As a group, analysts forecast that Alcoa will post 6.69 EPS for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Alcoa

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

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 value-added aluminum products. These materials serve customers in industries such as transportation, building and construction, packaging, aerospace and industrial manufacturing.

The company operates across multiple regions, with assets and activities in North America, South America, Europe, Australia and other international markets.

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