Alcoa (NYSE:AA) Shares Set to Pay Quarterly Dividend of $0.10

Key Points

• Alcoa declared a quarterly dividend of $0.10 per share, payable November 13 to shareholders of record on October 27. The annualized dividend is $0.40, representing a 1.0% yield.
• The dividend appears well covered, with a current payout ratio of 15.5% and an expected future payout ratio of 7.0% based on projected earnings.
• Alcoa reported quarterly EPS of $1.82, exceeding analysts’ $1.51 estimate, while revenue reached $3.70 billion, up 23.7% year over year but below expectations.

Alcoa (NYSE:AA - Get Free Report) announced a quarterly dividend on Thursday, October 15th. Stockholders of record on Tuesday, October 27th will be paid a dividend of $0.10 per share by the industrial products company on Friday, November 13th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Tuesday, October 27th.

Alcoa has a payout ratio of 15.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Alcoa to earn $5.69 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 7.0%.

Alcoa Stock Up 0.5%

NYSE:AA opened at $40.30 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92. The firm's 50-day moving average price is $47.10 and its 200-day moving average price is $56.14. The company has a market capitalization of $10.63 billion, a PE ratio of 8.29, a P/E/G ratio of 0.49 and a beta of 1.74. Alcoa has a 1-year low of $35.12 and a 1-year high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last announced its quarterly earnings data on Thursday, October 15th. The industrial products company reported $1.82 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.31. The business had revenue of $3.70 billion for the quarter, compared to analysts' expectations of $3.77 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The business's revenue was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.88 earnings per share. On average, equities analysts predict that Alcoa will post 6.69 EPS for the current fiscal year.

Insider Buying and Selling at Alcoa

In other Alcoa news, EVP Tammi Jones sold 15,628 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $50.60, for a total value of $790,776.80. Following the transaction, the executive vice president directly owned 39,819 shares of the company's stock, valued at approximately $2,014,841.40. This trade represents a 28.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Renato Bacchi sold 700 shares of Alcoa stock in a transaction on Monday, August 31st. The stock was sold at an average price of $51.02, for a total transaction of $35,714.00. Following the transaction, the executive vice president owned 74,930 shares in the company, valued at $3,822,928.60. This represents a 0.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Alcoa

A number of institutional investors have recently bought and sold shares of AA. Checchi Capital Advisers LLC increased its holdings in shares of Alcoa by 3.4% in the first quarter. Checchi Capital Advisers LLC now owns 5,138 shares of the industrial products company's stock worth $341,000 after purchasing an additional 170 shares during the last quarter. Essential Partners LLC lifted its stake in shares of Alcoa by 0.9% during the 1st quarter. Essential Partners LLC now owns 20,525 shares of the industrial products company's stock worth $1,361,000 after acquiring an additional 193 shares during the last quarter. Himension Capital Singapore PTE. LTD. grew its position in Alcoa by 1.3% in the 1st quarter. Himension Capital Singapore PTE. LTD. now owns 18,626 shares of the industrial products company's stock valued at $1,235,000 after acquiring an additional 246 shares during the last quarter. Sage Rhino Capital LLC boosted its stake in shares of Alcoa by 7.0% during the first quarter. Sage Rhino Capital LLC now owns 4,276 shares of the industrial products company's stock valued at $284,000 after purchasing an additional 279 shares during the period. Finally, Envestnet Portfolio Solutions Inc. boosted its position in Alcoa by 4.6% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,373 shares of the industrial products company's stock valued at $332,000 after buying an additional 282 shares during the period. Hedge funds and other institutional investors own 82.39% of the company's stock.

About Alcoa

Alcoa Corporation NYSE: AA is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.

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