Alcoa (NYSE:AA) Stock Has Average Target Price of $61.42

Key Points

• Analysts have a consensus “Hold” rating on Alcoa, with seven buys, five holds and one sell among 13 analysts. The average 12-month price target is $61.42, above the reported share price of $42.74.
• Alcoa’s latest quarterly results fell slightly short of expectations, with EPS of $2.12 versus the $2.25 consensus and revenue of $3.97 billion versus estimates of $3.99 billion.
• Two executives recently sold shares, while several institutional investors increased their positions. Alcoa also maintains a quarterly dividend of $0.10 per share, implying a 0.9% annual yield.

Alcoa (NYSE:AA - Get Free Report) has earned a consensus recommendation of "Hold" from the thirteen analysts that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and seven have given a buy recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $61.42.

Several research firms have recently weighed in on AA. UBS Group lowered their target price on shares of Alcoa from $80.00 to $68.00 and set a "buy" rating on the stock in a report on Tuesday, June 30th. Argus reduced their price target on shares of Alcoa from $73.00 to $55.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Alcoa in a research note on Monday, September 14th. Royal Bank Of Canada set a $70.00 price objective on shares of Alcoa in a report on Wednesday, July 1st. Finally, JPMorgan Chase & Co. cut their target price on shares of Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a research note on Friday, July 17th.

Insider Buying and Selling at Alcoa

In other news, EVP Tammi A. Jones sold 15,628 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Renato Bacchi sold 700 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $51.02, for a total value of $35,714.00. Following the completion of the sale, the executive vice president owned 74,930 shares of the company's stock, valued at approximately $3,822,928.60. This trade represents a 0.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Institutional Investors Weigh In On Alcoa

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AA. Envestnet Portfolio Solutions Inc. increased its stake in 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 acquiring an additional 282 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in shares of Alcoa by 7.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 349,306 shares of the industrial products company's stock valued at $18,213,000 after purchasing an additional 22,880 shares in the last quarter. Core Capital Management & Research inc. bought a new position in shares of Alcoa in the 2nd quarter valued at $259,000. Sequoia Financial Advisors LLC increased its stake in shares of Alcoa by 43.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 8,964 shares of the industrial products company's stock valued at $467,000 after purchasing an additional 2,706 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in shares of Alcoa by 26.5% during the 2nd quarter. NewEdge Advisors LLC now owns 11,113 shares of the industrial products company's stock worth $579,000 after buying an additional 2,325 shares in the last quarter.

Alcoa Trading Up 0.1%

Shares of AA opened at $42.74 on Friday. Alcoa has a 1 year low of $31.45 and a 1 year high of $84.38. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30. The stock has a 50 day simple moving average of $47.98 and a 200-day simple moving average of $58.05. The stock has a market cap of $11.28 billion, a PE ratio of 8.79, a PEG ratio of 0.48 and a beta of 1.63.

Alcoa (NYSE:AA - Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The industrial products company reported $2.12 EPS for the quarter, missing the consensus estimate of $2.25 by ($0.13). The company 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. On average, sell-side analysts predict that Alcoa will post 6.61 EPS for the current fiscal year.

Alcoa Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Tuesday, August 11th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, August 11th. Alcoa's dividend payout ratio (DPR) is currently 8.23%.

About Alcoa

Alcoa Corporation NYSE: AA is a global producer of bauxite, alumina and aluminum. Its operations span the aluminum value chain, including bauxite mining, alumina refining, aluminum smelting, casting and the production of select value-added aluminum products. The company serves customers in industries such as transportation, aerospace, construction, packaging, consumer products and energy.

Founded in 1888 as the Pittsburgh Reduction Company, Alcoa played a major role in developing the commercial aluminum industry and adopted the Alcoa name in 1907.

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