Alcoa (NYSE:AA) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on Alcoa, with six buys, four holds and two sells. The average 12-month price target is $61.09, although several firms recently lowered their targets.
• Alcoa’s shares opened at $50.05, near their 50-day average of $48.86 and well below the 52-week high of $84.38. The company’s latest quarterly results missed expectations, reporting $2.12 EPS versus the $2.25 consensus and revenue of $3.97 billion versus $3.99 billion expected.
• EVP Tammi A. Jones sold 15,628 shares worth approximately $790,777, reducing her direct ownership by 28.19%. Meanwhile, several institutional investors increased their positions, including California State Teachers Retirement System, which added more than 15.6 million shares.

Shares of Alcoa (NYSE:AA - Get Free Report) have been given an average recommendation of "Hold" by the twelve ratings firms that are covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and six have issued a buy rating on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $61.0909.

AA has been the topic of a number of recent analyst reports. B. Riley Financial cut their price target on shares of Alcoa from $92.00 to $80.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. BMO Capital Markets lowered their price objective on shares of Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a research note on Friday, July 17th. Bank of America dropped their price objective on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a report on Thursday, July 9th. JPMorgan Chase & Co. cut their target price on Alcoa from $55.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, July 17th. Finally, Morgan Stanley restated an "equal weight" rating and issued a $53.00 target price (down from $79.00) on shares of Alcoa in a research note on Wednesday, July 8th.

Insider Activity

In other Alcoa news, EVP Tammi A. Jones sold 15,628 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The stock was 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 directly owned 39,819 shares of the company's stock, valued at approximately $2,014,841.40. The trade was a 28.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Hedge Funds Weigh In On Alcoa

Large investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LP lifted its holdings in Alcoa by 301.8% during the second quarter. Corient Private Wealth LP now owns 44,110 shares of the industrial products company's stock valued at $2,300,000 after purchasing an additional 33,131 shares in the last quarter. HighTower Advisors LLC increased its stake in shares of Alcoa by 378.7% during the second quarter. HighTower Advisors LLC now owns 351,442 shares of the industrial products company's stock worth $18,324,000 after purchasing an additional 278,031 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Alcoa during the 2nd quarter worth about $3,853,000. California State Teachers Retirement System raised its position in shares of Alcoa by 5,246.0% during the 2nd quarter. California State Teachers Retirement System now owns 15,966,936 shares of the industrial products company's stock worth $832,516,000 after purchasing an additional 15,668,264 shares during the last quarter. Finally, HB Wealth Management LLC raised its position in shares of Alcoa by 2.3% during the 2nd quarter. HB Wealth Management LLC now owns 13,200 shares of the industrial products company's stock worth $688,000 after purchasing an additional 293 shares during the last quarter.

Alcoa Stock Down 0.5%

Shares of NYSE AA opened at $50.05 on Tuesday. Alcoa has a 12-month low of $30.21 and a 12-month high of $84.38. The stock's fifty day simple moving average is $48.86 and its two-hundred day simple moving average is $59.87. The stock has a market capitalization of $13.21 billion, a PE ratio of 10.30, a price-to-earnings-growth ratio of 0.57 and a beta of 1.63. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The industrial products company reported $2.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). Alcoa had a return on equity of 18.90% and a net margin of 9.48%.The firm had revenue of $3.97 billion during the quarter, compared to analysts' expectations of $3.99 billion. During the same period in the previous year, the firm earned $0.39 EPS. As a group, analysts expect that Alcoa will post 6.55 EPS for the current fiscal year.

Alcoa Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Tuesday, August 11th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. Alcoa's payout ratio is currently 8.23%.

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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