ARGA Investment Management LP Has $36.63 Million Holdings in Alcoa $AA

Key Points

• ARGA Investment Management LP reduced its Alcoa stake by 56%, selling 878,044 shares and retaining 689,217 shares valued at $36.63 million, about 0.27% of the company and its 23rd-largest holding.
• Alcoa missed Q1 estimates, reporting EPS of $1.40 versus $1.60 expected and revenue of $3.19 billion versus $3.35 billion, with revenue down 5.2% year-over-year.
• Analysts are mixed: Morgan Stanley upgraded Alcoa to "overweight" with an $80 target and Citigroup lifted its target to $76, but the MarketBeat consensus remains a "Hold" with a $64.27 price target.

ARGA Investment Management LP lessened its holdings in shares of Alcoa (NYSE:AA - Free Report) by 56.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 689,217 shares of the industrial products company's stock after selling 878,044 shares during the quarter. Alcoa accounts for approximately 1.0% of ARGA Investment Management LP's holdings, making the stock its 23rd largest holding. ARGA Investment Management LP owned 0.27% of Alcoa worth $36,625,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in the business. Torren Management LLC acquired a new stake in Alcoa during the 4th quarter worth $71,000. Mitsubishi UFJ Trust & Banking Corp raised its holdings in Alcoa by 14.4% during the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 39,810 shares of the industrial products company's stock worth $2,116,000 after buying an additional 5,015 shares during the period. R Squared Ltd acquired a new stake in Alcoa during the 4th quarter worth approximately $219,000. M&T Bank Corp raised its holdings in Alcoa by 28.7% during the 4th quarter. M&T Bank Corp now owns 17,786 shares of the industrial products company's stock worth $945,000 after buying an additional 3,970 shares during the period. Finally, D.A. Davidson & CO. raised its holdings in Alcoa by 11.3% during the 4th quarter. D.A. Davidson & CO. now owns 14,716 shares of the industrial products company's stock worth $782,000 after buying an additional 1,497 shares during the period. Institutional investors and hedge funds own 82.39% of the company's stock.

Alcoa Stock Up 2.0%

NYSE:AA opened at $67.35 on Tuesday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48. Alcoa has a 52-week low of $23.60 and a 52-week high of $75.70. The company has a market cap of $17.77 billion, a PE ratio of 17.05 and a beta of 1.70. The stock has a 50-day simple moving average of $64.69 and a 200 day simple moving average of $54.30.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The business had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same quarter last year, the business earned $2.15 earnings per share. Alcoa's revenue for the quarter was down 5.2% on a year-over-year basis. On average, sell-side analysts expect that Alcoa will post 7.66 EPS for the current fiscal year.

Alcoa Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were issued a $0.10 dividend. The ex-dividend date was Tuesday, March 10th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.6%. Alcoa's dividend payout ratio (DPR) is 10.13%.

Analyst Ratings Changes

Several analysts have commented on AA shares. Morgan Stanley upgraded shares of Alcoa from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $64.00 to $80.00 in a report on Thursday, April 9th. Weiss Ratings restated a "hold (c)" rating on shares of Alcoa in a report on Monday, December 29th. Wall Street Zen upgraded shares of Alcoa from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. Citigroup lifted their price target on Alcoa from $54.00 to $76.00 and gave the company a "buy" rating in a research note on Monday, March 16th. Finally, BMO Capital Markets lifted their price target on Alcoa from $65.00 to $75.00 and gave the company a "market perform" rating in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Alcoa currently has a consensus rating of "Hold" and a consensus price target of $64.27.

About Alcoa

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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