Argus Has Lowered Expectations for Alcoa (NYSE:AA) Stock Price

Key Points

• Argus cut its price target on Alcoa from $73 to $55, though it still kept a buy rating. The new target implies about 24% upside from the current share price.
• Other analysts have also turned more cautious on AA, with recent target cuts from firms including JPMorgan, Bank of America, and BMO Capital Markets. Overall, Alcoa now carries a Hold consensus rating and an average target price of $61.09.
• Alcoa recently reported quarterly earnings of $2.12 per share, missing estimates of $2.25, while revenue came in slightly below expectations. The stock was trading at $44.23, well below its 50-day and 200-day moving averages.

Alcoa (NYSE:AA - Get Free Report) had its target price reduced by Argus from $73.00 to $55.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the industrial products company's stock. Argus' price objective suggests a potential upside of 24.34% from the company's current price.

AA has been the topic of several other research reports. Wall Street Zen cut Alcoa from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Wells Fargo & Company dropped their price target on shares of Alcoa from $72.00 to $71.00 and set an "overweight" rating for the company in a research report on Friday, July 17th. JPMorgan Chase & Co. dropped their price objective on Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a report on Friday, July 17th. Bank of America cut their price objective on Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a report on Thursday, July 9th. Finally, BMO Capital Markets reduced their price target on shares of Alcoa from $60.00 to $55.00 and set a "market perform" rating on the stock in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Alcoa currently has an average rating of "Hold" and a consensus target price of $61.09.

Alcoa Price Performance

Alcoa stock opened at $44.23 on Wednesday. Alcoa has a 12-month low of $28.11 and a 12-month high of $84.38. The stock has a market capitalization of $11.67 billion, a P/E ratio of 9.10, a P/E/G ratio of 0.48 and a beta of 1.63. The firm's 50-day moving average is $60.80 and its two-hundred day moving average is $62.38. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). The firm had revenue of $3.97 billion during 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 in the prior year, the firm earned $0.39 EPS. Equities analysts predict that Alcoa will post 6.72 earnings per share for the current year.

Institutional Trading of Alcoa

A number of hedge funds and other institutional investors have recently made changes to their positions in AA. Basepoint Wealth LLC bought a new position in Alcoa during the 4th quarter valued at $25,000. Western Wealth Management LLC acquired a new stake in shares of Alcoa in the 1st quarter valued at about $35,000. Raleigh Capital Management Inc. raised its stake in shares of Alcoa by 52,500.0% in the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 525 shares in the last quarter. CoreCap Advisors LLC lifted its position in shares of Alcoa by 74.1% during the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock worth $30,000 after purchasing an additional 237 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its stake in Alcoa by 5,281.8% in the fourth 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 in the last quarter.

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company's operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa's product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.