Alcoa (NYSE:AA) Stock Picked Up by Analysts at Barclays

Key Points

• Barclays initiated coverage of Alcoa with an “overweight” rating and a $55 price target, implying approximately 40% upside from the referenced share price.
• Despite Barclays’ positive view, analyst sentiment is mixed: Alcoa has an overall “Moderate Buy” rating and an average price target of $60.54, with ratings ranging from Strong Buy to Sell.
• Alcoa shares fell 2% to $39.30, while the company’s latest quarterly earnings came in below analyst expectations on both earnings per share and revenue.

Stock analysts at Barclays initiated coverage on shares of Alcoa (NYSE:AA - Get Free Report) in a note issued to investors on Wednesday, MarketBeat Ratings reports. The firm set an "overweight" rating and a $55.00 price target on the industrial products company's stock. Barclays's target price indicates a potential upside of 39.97% from the company's current price.

Several other research firms also recently issued reports on AA. Bank of America decreased their price objective on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a report on Thursday, July 9th. Morgan Stanley cut their target price on shares of Alcoa from $53.00 to $50.00 and set an "equal weight" rating for the company in a research report on Wednesday, October 7th. BMO Capital Markets decreased their price target on shares of Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a report on Friday, July 17th. Freedom Broker raised their price target on Alcoa from $64.00 to $76.00 and gave the company a "buy" rating in a research report on Tuesday, September 22nd. Finally, UBS Group dropped their price objective on Alcoa from $80.00 to $68.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Alcoa presently has an average rating of "Moderate Buy" and an average target price of $60.54.

Alcoa Trading Down 2.0%

Shares of NYSE:AA traded down $0.79 during mid-day trading on Wednesday, hitting $39.30. The stock had a trading volume of 432,982 shares, compared to its average volume of 5,807,500. The company has a market cap of $10.37 billion, a PE ratio of 8.06, a P/E/G ratio of 0.51 and a beta of 1.74. Alcoa has a 12-month low of $35.12 and a 12-month high of $84.38. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. The company's 50 day moving average is $47.24 and its 200-day moving average is $56.27.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing the consensus estimate of $2.25 by ($0.13). Alcoa had a return on equity of 18.90% and a net margin of 9.48%. The company had revenue of $3.97 billion during the quarter, compared to analyst estimates of $3.99 billion. During the same quarter last year, the firm posted $0.39 earnings per share. On average, sell-side analysts predict that Alcoa will post 6.69 EPS for the current year.

Insider Activity at Alcoa

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

Institutional Trading of Alcoa

A number of large investors have recently bought and sold shares of AA. GAMMA Investing LLC lifted its stake in Alcoa by 10.4% in the 3rd 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 in the last quarter. YHB Investment Advisors Inc. increased its position in Alcoa by 3.2% during the third 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. Ausbil Investment Management Ltd acquired a new position in shares of Alcoa during the 3rd quarter worth approximately $588,000. Envestnet Portfolio Solutions Inc. raised its position in shares of Alcoa by 4.6% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,373 shares of the industrial products company's stock valued at $332,000 after purchasing an additional 282 shares during the period. Finally, Envestnet Asset Management Inc. lifted its position in Alcoa by 7.0% during the second quarter. Envestnet Asset Management Inc. now owns 349,306 shares of the industrial products company's stock worth $18,213,000 after acquiring an additional 22,880 shares during the last quarter.

Alcoa News Summary

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Barclays upgraded Alcoa to “strong buy” and set a $55 price target, implying approximately 39% upside from the referenced share price. The upgrade adds to the positive analyst momentum following Barclays’ recent “overweight” coverage initiation. Benzinga coverage
• Positive Sentiment: South32 shareholders approved resolutions supporting the proposed sale of its aluminum and alumina assets to Alcoa. The roughly $8 billion transaction would significantly expand Alcoa’s portfolio and could strengthen its long-term scale and position in the aluminum industry. South32 shareholders back board changes and Alcoa asset sale at AGM
• Neutral Sentiment: Alcoa is expected to report third-quarter results today. Forecasts call for year-over-year revenue and earnings growth, supported by aluminum sales and smelter restarts, but investors will assess the effects of weaker alumina conditions and higher operating costs. Options markets are also pricing a potentially significant earnings-related move. Alcoa Gears Up to Post Q3 Earnings
• Negative Sentiment: Execution and financial risks remain around the South32 acquisition. Although shareholder approval removes a key hurdle, the large transaction will require completion and integration, while AA’s shares remain significantly below their moving-average levels and closer to the yearly low than the yearly high.

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.