Alcoa (NYSE:AA) Stock Price Target Lowered at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Alcoa’s price target from $52 to $50 while maintaining a neutral rating, implying approximately 18.5% upside from the prior close.
• Analyst sentiment remains mixed, with Alcoa carrying a consensus “Hold” rating and an average price target of $61; Morgan Stanley also reduced its target to $50.
• Alcoa shares closed at $42.18 after falling $0.99, while the company’s latest quarterly results missed analysts’ expectations for both earnings and revenue.

Alcoa (NYSE:AA - Get Free Report) had its price target reduced by equities researchers at JPMorgan Chase & Co. from $52.00 to $50.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 18.54% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. Morgan Stanley lowered their target price on shares of Alcoa from $53.00 to $50.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Royal Bank Of Canada set a $70.00 target price on Alcoa in a research report on Wednesday, July 1st. Weiss Ratings reiterated a "hold (c+)" rating on shares of Alcoa in a research report on Monday, September 14th. BMO Capital Markets cut their price objective on Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a report on Friday, July 17th. Finally, Wall Street Zen raised Alcoa from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Seven analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Alcoa currently has a consensus rating of "Hold" and a consensus target price of $61.00.

Alcoa Stock Performance

AA stock traded down $0.99 during trading on Wednesday, reaching $42.18. 1,350,224 shares of the company's stock were exchanged, compared to its average volume of 5,851,138. Alcoa has a 1-year low of $35.01 and a 1-year high of $84.38. The firm has a market cap of $11.13 billion, a PE ratio of 8.68, a P/E/G ratio of 0.49 and a beta of 1.74. The company's fifty day moving average price is $47.68 and its 200-day moving average price is $56.93. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly 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). The business had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. During the same period last year, the business posted $0.39 earnings per share. On average, research analysts expect that Alcoa will post 6.61 EPS for the current fiscal year.

Insider Buying and Selling at Alcoa

In other Alcoa news, EVP Tammi A. Jones sold 15,628 shares of the business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the sale, the executive vice president owned 39,819 shares in the company, valued at approximately $2,014,841.40. The trade was a 28.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Renato Bacchi sold 700 shares of the company's 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 sale, the executive vice president directly owned 74,930 shares of the company's stock, valued at $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Alcoa

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Alcoa during the second quarter valued at $1,528,523,000. Castle Hook Partners LP purchased a new position in Alcoa during the 4th quarter valued at about $210,874,000. Bank of New York Mellon Corp purchased a new position in Alcoa during the 2nd quarter valued at about $166,194,000. Nykredit A S acquired a new position in shares of Alcoa in the 2nd quarter valued at about $74,407,000. Finally, Deutsche Bank AG purchased a new stake in shares of Alcoa in the second quarter worth approximately $55,308,000. Hedge funds and other institutional investors own 82.39% of the company's stock.

About Alcoa

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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