Alcoa (NYSE:AA) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts collectively rate Alcoa “Hold.” Of 13 firms covering the stock, seven recommend buying, five recommend holding and one recommends selling; the average 12-month price target is $58.23.
• Alcoa recently reported quarterly EPS of $1.82, beating estimates of $1.51, while revenue reached $3.70 billion, up 23.7% year over year but below expectations.
• The company declared a quarterly dividend of $0.10 per share, representing an annualized payout of $0.40 and a 1.0% yield; shares opened at $40.76, near the lower end of their 12-month range.

Alcoa (NYSE:AA - Get Free Report) has been assigned an average rating of "Hold" from the thirteen research firms that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and seven have given a buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $58.23.

Several analysts recently commented on AA shares. JPMorgan Chase & Co. dropped their price target on shares of Alcoa from $52.00 to $50.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. UBS Group decreased their price objective on shares of Alcoa from $80.00 to $68.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. DA Davidson set a $62.00 price objective on shares of Alcoa in a research report on Tuesday. Morgan Stanley lowered their target price on shares of Alcoa from $53.00 to $50.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 7th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Alcoa in a research report on Monday, September 14th.

Alcoa Price Performance

Shares of NYSE AA opened at $40.76 on Wednesday. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.31 and a quick ratio of 1.66. The stock has a market capitalization of $10.76 billion, a price-to-earnings ratio of 7.04, a PEG ratio of 0.62 and a beta of 1.74. The firm's 50 day simple moving average is $46.45 and its 200-day simple moving average is $55.59. Alcoa has a 12 month low of $35.12 and a 12 month high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Thursday, October 15th. The industrial products company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.31. Alcoa had a net margin of 10.77% and a return on equity of 24.58%. The firm had revenue of $3.70 billion during the quarter, compared to analysts' expectations of $3.77 billion. During the same period in the previous year, the business posted $0.88 EPS. The business's revenue was up 23.7% compared to the same quarter last year. Analysts expect that Alcoa will post 6.63 EPS for the current year.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Tuesday, October 27th will be given a dividend of $0.10 per share. The ex-dividend date is Tuesday, October 27th. This represents a $0.40 dividend on an annualized basis and a yield of 1.0%. Alcoa's dividend payout ratio is currently 6.91%.

Insider Activity at Alcoa

In other news, EVP Tammi 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 sale, the executive vice president directly owned 39,819 shares in the company, valued at $2,014,841.40. The trade was a 28.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Renato Bacchi sold 700 shares of the business's stock in a transaction that occurred 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 $3,822,928.60. This trade represents a 0.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Institutional Investors Weigh In On Alcoa

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in Alcoa in the 2nd quarter valued at $1,528,523,000. Bank of New York Mellon Corp acquired a new stake in Alcoa during the 2nd quarter worth $166,194,000. Nykredit A S acquired a new stake in Alcoa during the 2nd quarter worth $74,407,000. Deutsche Bank AG acquired a new stake in Alcoa during the 2nd quarter worth $55,308,000. Finally, Man Group plc purchased a new stake in shares of Alcoa during the second quarter worth $38,743,000.

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 value-added aluminum products. These materials serve customers in industries such as transportation, building and construction, packaging, aerospace and industrial manufacturing.

The company operates across multiple regions, with assets and activities in North America, South America, Europe, Australia and other international markets.

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