Aberdeen Group plc Invests $315,000 in Alcoa $AA

Key Points

• Aberdeen Group plc has purchased a new stake in Alcoa, acquiring 10,675 shares valued at approximately $315,000 during the second quarter.
• Multiple hedge funds have also increased their positions in Alcoa, with IFP Advisors Inc lifting its stake by 1,096.0%, indicating growing investor confidence in the company.
• Wall Street analysts are optimistic about Alcoa's stock, with price targets raised by several firms, predicting potential growth and a consensus rating of "Moderate Buy."

Aberdeen Group plc bought a new stake in Alcoa (NYSE:AA - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 10,675 shares of the industrial products company's stock, valued at approximately $315,000.

A number of other hedge funds have also recently made changes to their positions in AA. IFP Advisors Inc lifted its position in shares of Alcoa by 1,096.0% during the second quarter. IFP Advisors Inc now owns 897 shares of the industrial products company's stock worth $26,000 after purchasing an additional 822 shares in the last quarter. Montag A & Associates Inc. purchased a new position in Alcoa in the first quarter valued at approximately $40,000. Quarry LP purchased a new stake in Alcoa in the first quarter valued at $57,000. GAMMA Investing LLC boosted its position in shares of Alcoa by 58.8% in the 1st quarter. GAMMA Investing LLC now owns 2,298 shares of the industrial products company's stock valued at $70,000 after purchasing an additional 851 shares during the period. Finally, Banque Transatlantique SA purchased a new position in shares of Alcoa during the first quarter worth approximately $74,000.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Morgan Stanley boosted their price target on Alcoa from $38.00 to $42.50 and gave the company an "overweight" rating in a research report on Wednesday, October 8th. HSBC upped their price target on Alcoa from $33.00 to $41.00 and gave the stock a "buy" rating in a research note on Friday. Citigroup upgraded shares of Alcoa to a "buy" rating and set a $42.00 price objective on the stock in a research report on Tuesday, July 8th. Bank of America boosted their price objective on shares of Alcoa from $26.00 to $27.00 and gave the company an "underperform" rating in a research note on Thursday, July 17th. Finally, Weiss Ratings upgraded shares of Alcoa from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $42.88.

Alcoa Price Performance

Shares of NYSE AA opened at $36.00 on Friday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.65. The company's fifty day moving average is $32.73 and its two-hundred day moving average is $29.58. Alcoa has a one year low of $21.53 and a one year high of $47.77. The firm has a market capitalization of $9.32 billion, a P/E ratio of 9.40, a PEG ratio of 0.22 and a beta of 2.20.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings results on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.10. The company had revenue of $3.02 billion during the quarter, compared to the consensus estimate of $2.96 billion. Alcoa had a net margin of 7.86% and a return on equity of 19.18%. The company's revenue for the quarter was up 3.9% on a year-over-year basis. During the same period last year, the firm earned $0.16 EPS. Analysts forecast that Alcoa will post 4.43 EPS for the current fiscal year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Tuesday, August 12th were issued a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $0.40 annualized dividend and a yield of 1.1%. Alcoa's dividend payout ratio is 10.44%.

Alcoa Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.

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