Alcoa (NYSE:AA) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Alcoa from “strong buy” to “buy,” while the broader analyst consensus remains “hold,” with a consensus price target of $58.23.
• Alcoa’s latest quarterly results exceeded expectations, with adjusted EPS of $1.82 versus the $1.51 estimate and revenue rising 23.7% year over year to $3.70 billion.
• Despite the earnings beat, shares have faced pressure amid weaker aluminum pricing, excess global supply and margin concerns; the stock opened at $37.96, near its 52-week low of $35.12.

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

A number of other research analysts have also recently commented on the company. UBS Group lowered their target price on Alcoa from $80.00 to $68.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. Citigroup reduced their price target on Alcoa from $76.00 to $56.00 and set a "buy" rating on the stock in a research note on Tuesday, October 20th. Argus reiterated a "hold" rating on shares of Alcoa in a report on Thursday. Zacks Research raised Alcoa from a "strong sell" rating to a "hold" rating in a research report on Monday, September 14th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Alcoa from $52.00 to $50.00 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Alcoa has a consensus rating of "Hold" and a consensus target price of $58.23.

Alcoa Trading Down 1.9%

Shares of AA stock opened at $37.96 on Friday. The company has a 50-day simple moving average of $45.78 and a two-hundred day simple moving average of $55.03. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.66 and a current ratio of 2.31. The company has a market capitalization of $10.02 billion, a price-to-earnings ratio of 6.56, a PEG ratio of 0.56 and a beta of 1.74. Alcoa has a 52-week low of $35.12 and a 52-week high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Thursday, October 15th. The industrial products company reported $1.82 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.31. Alcoa had a return on equity of 24.58% and a net margin of 10.77%. 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 prior year, the business earned $0.88 EPS. The business's revenue for the quarter was up 23.7% on a year-over-year basis. Research analysts anticipate that Alcoa will post 6.70 EPS for the current fiscal year.

Insider Activity at Alcoa

In other news, EVP Tammi Jones sold 15,628 shares of Alcoa stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 39,819 shares in the company, valued at approximately $2,014,841.40. This trade represents a 28.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Renato Bacchi sold 700 shares of the business's stock in a transaction that occurred on Monday, August 31st. The stock was 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 directly owned 74,930 shares in the company, valued at approximately $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Alcoa in the second quarter worth $25,000. Western Wealth Management LLC purchased a new position in shares of Alcoa in the 1st quarter worth about $35,000. Caitong International Asset Management Co. Ltd raised its position in shares of Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock worth $31,000 after purchasing an additional 581 shares during the last quarter. Costello Asset Management INC purchased a new position in shares of Alcoa in the 1st quarter worth about $53,000. Finally, Root Financial Partners LLC bought a new position in Alcoa in the 3rd quarter worth about $42,000.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa’s quarterly results benefited from improving smelter economics. The company previously reported adjusted earnings of $1.82 per share, above the $1.51 consensus estimate, while revenue increased 23.7% year over year to $3.70 billion. Alcoa Posts Quarterly Results As Smelter Economics Improve
• Neutral Sentiment: Alcoa’s valuation remains relatively modest, but its high beta and declining position below its 50-day and 200-day moving averages indicate elevated volatility and ongoing investor caution.
• Negative Sentiment: Argus Research downgraded Alcoa from Buy to Hold, citing mounting pricing pressure and expanding global aluminum supply. Argus warned that these conditions could weigh on near-term profit margins. Argus Research Downgrades Alcoa Alcoa Downgraded at Argus
• Negative Sentiment: The Argus downgrade triggered significant selling as investors focused on market headwinds, excess supply and the risk that weaker pricing will offset operational improvements. Alcoa Shares Fall After Argus Downgrade
• Negative Sentiment: Citigroup, B. Riley Financial and Freedom Broker each issued more pessimistic forecasts or lowered expectations for Alcoa, adding to the negative analyst sentiment surrounding the stock. Citigroup Forecast for Alcoa B. Riley Forecast for Alcoa Freedom Broker Expectations for Alcoa

Alcoa Company Profile

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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