Bank of America Cuts Alcoa (NYSE:AA) Price Target to $51.00

Key Points

• Bank of America cut Alcoa’s price target to $51 from $57 and kept an underperform rating on the stock.
• Despite the cut, BofA’s target still implies about 5.23% upside from Alcoa’s current share price, which was trading at $48.47.
• Analyst sentiment remains mixed overall: the consensus rating is Hold with a consensus price target of $66.27, but recent commentary has leaned more cautious after Alcoa’s earnings miss.

Alcoa (NYSE:AA - Get Free Report) had its target price reduced by Bank of America from $57.00 to $51.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an "underperform" rating on the industrial products company's stock. Bank of America's price objective would indicate a potential upside of 5.23% from the stock's current price.

A number of other research analysts also recently commented on AA. Citigroup increased their price target on shares of Alcoa from $54.00 to $76.00 and gave the company a "buy" rating in a report on Monday, March 16th. Argus set a $73.00 price objective on Alcoa in a research note on Monday, April 27th. Weiss Ratings upgraded Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, June 17th. Royal Bank Of Canada set a $70.00 price objective on Alcoa in a research note on Wednesday, July 1st. Finally, BMO Capital Markets boosted their target price on Alcoa from $65.00 to $75.00 and gave the company a "market perform" rating in a research report on Thursday, April 9th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $66.27.

Alcoa Trading Down 1.1%

Shares of AA opened at $48.47 on Thursday. The company's fifty day moving average is $63.84 and its 200 day moving average is $62.80. Alcoa has a fifty-two week low of $28.11 and a fifty-two week high of $84.38. The stock has a market capitalization of $12.79 billion, a PE ratio of 12.27, a P/E/G ratio of 0.67 and a beta of 1.63. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48.

Alcoa (NYSE:AA - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The business had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the business earned $2.15 EPS. Alcoa's revenue for the quarter was down 5.2% compared to the same quarter last year. Sell-side analysts expect that Alcoa will post 8.48 earnings per share for the current fiscal year.

Institutional Trading of Alcoa

Institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC boosted its holdings in Alcoa by 1,098.0% during the 1st quarter. NewEdge Advisors LLC now owns 11,704 shares of the industrial products company's stock valued at $357,000 after acquiring an additional 10,727 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Alcoa by 0.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 646,609 shares of the industrial products company's stock worth $19,722,000 after purchasing an additional 4,624 shares during the period. Invesco Ltd. increased its stake in Alcoa by 1.9% in the second quarter. Invesco Ltd. now owns 640,528 shares of the industrial products company's stock worth $18,902,000 after purchasing an additional 12,008 shares during the period. EverSource Wealth Advisors LLC lifted its position in shares of Alcoa by 173.8% during the second quarter. EverSource Wealth Advisors LLC now owns 2,040 shares of the industrial products company's stock worth $60,000 after purchasing an additional 1,295 shares during the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Alcoa by 320.1% during the second quarter. First Trust Advisors LP now owns 269,982 shares of the industrial products company's stock worth $7,967,000 after purchasing an additional 205,717 shares during the last quarter.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa is showing up on an oversold-stock screen, with RSI near or below 30, which may attract traders looking for a bounce. Top 3 Materials Stocks That Could Lead To Your Biggest Gains In Q3
• Neutral Sentiment: Alcoa is expected to report earnings soon, keeping investors focused on whether results will confirm or challenge the bearish analyst outlook. Alcoa (AA) Expected to Post Earnings on Thursday
• Negative Sentiment: Zacks added Alcoa to its Rank #5 Strong Sell list, reinforcing bearish sentiment ahead of earnings. New Strong Sell Stocks for July 9th
• Negative Sentiment: Morgan Stanley cut Alcoa to Equal Weight and lowered its price target to $53 from $79, citing a weaker aluminum supply-demand outlook. Morgan Stanley upgrades Ivanhoe Mines, cuts Alcoa and Vale on metals outlook
• Negative Sentiment: B. Riley also lowered its price target on Alcoa to $80, adding to the string of analyst caution around the stock. Alcoa NYSE: AA Price Target Lowered to $80.00 at B. Riley Financial

About Alcoa

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.

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