B. Riley Forecasts Strong Price Appreciation for Alcoa (NYSE:AA) Stock

Key Points

• B. Riley has raised its target price for Alcoa's stock from $38.00 to $40.00, indicating a potential upside of 28.56% from its current price.
• Various analysts hold differing views on Alcoa, with UBS raising their target to $34.00 while JPMorgan cut theirs to $27.00, reflecting a mix of "buy," "hold," and "sell" ratings.
• Alcoa reported earnings of $0.39 EPS, exceeding expectations, with revenues up 3.9% year-over-year, amid increased interest from hedge funds boosting their holdings significantly.

Alcoa (NYSE:AA - Get Free Report) had its target price raised by equities researchers at B. Riley from $38.00 to $40.00 in a report released on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the industrial products company's stock. B. Riley's price target indicates a potential upside of 28.56% from the company's current price.

Other analysts have also recently issued reports about the stock. UBS Group upped their price target on shares of Alcoa from $31.00 to $34.00 and gave the stock a "neutral" rating in a research report on Friday. JPMorgan Chase & Co. decreased their target price on Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, July 17th. Morgan Stanley decreased their price objective on Alcoa from $40.00 to $38.00 and set an "overweight" rating for the company in a report on Friday, July 18th. Citigroup upgraded shares of Alcoa to a "buy" rating and set a $42.00 price objective on the stock in a research note on Tuesday, July 8th. Finally, Wall Street Zen lowered shares of Alcoa from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Six equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Alcoa currently has an average rating of "Hold" and a consensus price target of $42.27.

Alcoa Trading Down 4.6%

Shares of AA stock traded down $1.52 on Tuesday, reaching $31.11. 4,122,279 shares of the stock were exchanged, compared to its average volume of 5,910,180. The stock has a market cap of $8.06 billion, a P/E ratio of 8.13, a price-to-earnings-growth ratio of 0.18 and a beta of 2.26. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.41. The firm has a 50 day moving average of $31.05 and a two-hundred day moving average of $29.31. Alcoa has a 1-year low of $21.53 and a 1-year high of $47.77.

Alcoa (NYSE:AA - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The industrial products company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.10. The business had revenue of $3.02 billion during the quarter, compared to the consensus estimate of $2.96 billion. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The business's revenue for the quarter was up 3.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.16 EPS. On average, research analysts anticipate that Alcoa will post 4.43 EPS for the current year.

Hedge Funds Weigh In On Alcoa

A number of large investors have recently modified their holdings of AA. Wealth Enhancement Advisory Services LLC boosted its position in shares of Alcoa by 61.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 16,914 shares of the industrial products company's stock worth $516,000 after acquiring an additional 6,447 shares in the last quarter. Strs Ohio acquired a new stake in shares of Alcoa in the 1st quarter valued at $841,000. GAMMA Investing LLC increased its stake in shares of Alcoa by 58.8% in the 1st quarter. GAMMA Investing LLC now owns 2,298 shares of the industrial products company's stock valued at $70,000 after purchasing an additional 851 shares during the last quarter. Voya Investment Management LLC increased its stake in shares of Alcoa by 4.3% in the 1st quarter. Voya Investment Management LLC now owns 1,176,886 shares of the industrial products company's stock valued at $35,895,000 after purchasing an additional 48,604 shares during the last quarter. Finally, SG Americas Securities LLC increased its stake in shares of Alcoa by 630.4% in the 1st quarter. SG Americas Securities LLC now owns 28,955 shares of the industrial products company's stock valued at $883,000 after purchasing an additional 24,991 shares during the last quarter.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.

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