Advisors Preferred LLC Acquires New Shares in Alcoa $AA

Key Points

• Advisors Preferred LLC opened a new position in Alcoa during the first quarter, buying 24,323 shares valued at about $1.61 million.
• Alcoa and the governments of Australia, Japan, and the U.S. approved a gallium production plant in Western Australia, a move that could expand the company’s critical-minerals strategy.
• Investor attention is also on upcoming Q2 earnings; Alcoa recently missed Q1 estimates, while analysts remain mixed with an overall Hold consensus and a $64.91 average price target.

Advisors Preferred LLC acquired a new position in shares of Alcoa (NYSE:AA - Free Report) in the first quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 24,323 shares of the industrial products company's stock, valued at approximately $1,613,000.

A number of other institutional investors have also recently made changes to their positions in the business. Basepoint Wealth LLC acquired a new stake in shares of Alcoa during the fourth quarter worth $25,000. Advisory Services Network LLC purchased a new stake in shares of Alcoa in the third quarter valued at $27,000. Raleigh Capital Management Inc. increased its position in Alcoa by 52,500.0% during the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock worth $28,000 after purchasing an additional 525 shares in the last quarter. CoreCap Advisors LLC increased its position in Alcoa by 74.1% during the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock worth $30,000 after purchasing an additional 237 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its stake in Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 581 shares during the last quarter.

Alcoa News Roundup

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa and the governments of Australia, Japan, and the U.S. reached a final investment decision on a gallium production plant at Wagerup, strengthening Alcoa’s critical-minerals growth optionality. Article: Australia, Japan, the United States and Alcoa Announce Final Investment Decision for Gallium Project in Western Australia
• Positive Sentiment: News of the gallium project was echoed by Reuters and other outlets, increasing visibility around the deal and suggesting meaningful strategic importance for AA. Article: Alcoa greenlights Australia gallium plant with US, Japan and domestic backing
• Positive Sentiment: Investors are also focused on Alcoa’s upcoming Q2 earnings, with expectations for year-over-year revenue and EPS growth driven by aluminum demand and smelter restarts. Article: Alcoa Gears Up to Post Q2 Earnings: What Lies Ahead for the Stock?
• Neutral Sentiment: Analyst coverage remains cautious overall, with J.P. Morgan reportedly keeping a Hold rating on AA ahead of earnings. Article: J.P. Morgan Keeps Their Hold Rating on Alcoa (AA)
• Neutral Sentiment: Broader earnings-preview articles indicate the market is waiting for Alcoa’s July 16 report to confirm whether recent operating strength can translate into better results. Article: Alcoa Gears Up to Post Q2 Earnings: What Lies Ahead for the Stock?
• Negative Sentiment: Some recent commentary notes that AA has been under pressure over the past month, reflecting investor caution despite the long-term asset and commodity story. Article: Alcoa (AA) Following Its Asset Deal, Is The Undervalued Case Back In Focus?

Alcoa Trading Up 0.7%

AA stock opened at $49.05 on Wednesday. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36. The company has a market cap of $12.94 billion, a price-to-earnings ratio of 12.42, a PEG ratio of 0.52 and a beta of 1.63. The business has a fifty day simple moving average of $62.69 and a 200-day simple moving average of $62.68. Alcoa has a 52 week low of $28.11 and a 52 week high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last issued its earnings results on Thursday, April 16th. The industrial products company reported $1.40 earnings per share for the quarter, missing analysts' consensus estimates of $1.60 by ($0.20). The firm had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a net margin of 8.27% and a return on equity of 12.57%. Alcoa's revenue was down 5.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.15 EPS. On average, equities research analysts expect that Alcoa will post 6.93 EPS for the current year.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa's payout ratio is 10.13%.

Wall Street Analyst Weigh In

AA has been the subject of a number of recent research reports. BMO Capital Markets lifted their price target on shares of Alcoa from $65.00 to $75.00 and gave the stock a "market perform" rating in a report on Thursday, April 9th. Zacks Research lowered shares of Alcoa from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Bank of America cut their price target on Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a report on Thursday, July 9th. UBS Group decreased their price objective on Alcoa from $80.00 to $68.00 and set a "buy" rating on the stock in a report on Tuesday, June 30th. Finally, Wells Fargo & Company lifted their price objective on Alcoa from $71.00 to $72.00 and gave the company an "overweight" rating in a research report on Thursday, July 9th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $64.91.

Alcoa Company Profile

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.

Want to see what other hedge funds are holding AA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Alcoa (NYSE:AA - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.