Alcoa $AA Shares Acquired by HighTower Advisors LLC

Key Points

• HighTower Advisors increased its Alcoa stake by 378.7% in the second quarter, adding 278,031 shares to own 351,442 shares valued at approximately $18.3 million. Other major investors, including BlackRock and California State Teachers Retirement System, also expanded their positions.
• Alcoa reported quarterly revenue of $3.97 billion and earnings of $2.12 per share, missing analyst estimates of $3.99 billion and $2.25, respectively. The company also paid a quarterly dividend of $0.10 per share, implying a 0.8% annual yield.
• Analysts have generally become more cautious, lowering several price targets; Alcoa carries an overall “Hold” rating with an average target of $61.09. Two company executives also sold shares in late August.

HighTower Advisors LLC increased its position in shares of Alcoa (NYSE:AA - Free Report) by 378.7% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 351,442 shares of the industrial products company's stock after buying an additional 278,031 shares during the quarter. HighTower Advisors LLC owned about 0.13% of Alcoa worth $18,324,000 at the end of the most recent reporting period.

A number of other large investors have also recently added to or reduced their stakes in AA. BlackRock Inc. purchased a new position in shares of Alcoa during the 2nd quarter worth $1,528,523,000. California State Teachers Retirement System boosted its stake in Alcoa by 5,246.0% during the second quarter. California State Teachers Retirement System now owns 15,966,936 shares of the industrial products company's stock worth $832,516,000 after buying an additional 15,668,264 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Alcoa by 4.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company's stock valued at $615,428,000 after acquiring an additional 462,243 shares during the last quarter. State Street Corp raised its stake in shares of Alcoa by 6.7% in the 3rd quarter. State Street Corp now owns 11,458,529 shares of the industrial products company's stock valued at $376,871,000 after acquiring an additional 721,063 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Alcoa by 5.5% in the 4th quarter. Geode Capital Management LLC now owns 6,655,655 shares of the industrial products company's stock worth $389,621,000 after acquiring an additional 349,426 shares during the last quarter.

Alcoa Stock Performance

Shares of Alcoa stock opened at $51.78 on Wednesday. The business has a 50-day simple moving average of $48.56 and a 200-day simple moving average of $59.47. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. Alcoa has a one year low of $30.71 and a one year high of $84.38. The company has a market cap of $13.66 billion, a PE ratio of 10.65, a P/E/G ratio of 0.56 and a beta of 1.63.

Alcoa (NYSE:AA - Get Free Report) last issued its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing the consensus estimate of $2.25 by ($0.13). Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The firm had revenue of $3.97 billion during the quarter, compared to analyst estimates of $3.99 billion. During the same period last year, the business earned $0.39 EPS. On average, equities research analysts forecast that Alcoa will post 6.55 EPS for the current fiscal year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Tuesday, August 11th were paid a dividend of $0.10 per share. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.8%. Alcoa's payout ratio is presently 8.23%.

Insiders Place Their Bets

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

Analyst Upgrades and Downgrades

A number of brokerages recently commented on AA. Morgan Stanley restated an "equal weight" rating and set a $53.00 target price (down from $79.00) on shares of Alcoa in a report on Wednesday, July 8th. JPMorgan Chase & Co. reduced their price target on shares of Alcoa from $55.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, July 17th. Wells Fargo & Company lowered their price objective on shares of Alcoa from $72.00 to $71.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. BMO Capital Markets dropped their price objective on shares of Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a report on Friday, July 17th. Finally, Weiss Ratings raised shares of Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 17th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Alcoa presently has an average rating of "Hold" and an average price target of $61.09.

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.

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