ARGA Investment Management LP Reduces Stock Holdings in Alcoa $AA

Key Points

• ARGA Investment Management LP trimmed its Alcoa stake by 13.2% in the first quarter, selling 91,213 shares and leaving it with 598,004 shares worth about $39.7 million.
• Analyst sentiment is mixed but cautious: the consensus rating is Hold with a $64.91 average price target, while several firms have recently lowered targets or issued bearish calls.
• Alcoa recently missed Q1 earnings expectations, reporting $1.40 EPS versus $1.60 expected on revenue of $3.19 billion, even as the company continued its quarterly dividend of $0.10 per share.

ARGA Investment Management LP reduced its position in shares of Alcoa (NYSE:AA - Free Report) by 13.2% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 598,004 shares of the industrial products company's stock after selling 91,213 shares during the period. Alcoa accounts for about 1.3% of ARGA Investment Management LP's holdings, making the stock its 18th biggest holding. ARGA Investment Management LP owned approximately 0.23% of Alcoa worth $39,666,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Basepoint Wealth LLC acquired a new position in Alcoa in the 4th quarter valued at about $25,000. Advisory Services Network LLC acquired a new stake in shares of Alcoa during the 3rd quarter worth approximately $27,000. Raleigh Capital Management Inc. raised its position in shares of Alcoa by 52,500.0% during the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock valued at $28,000 after buying an additional 525 shares during the period. CoreCap Advisors LLC raised its position in shares of Alcoa by 74.1% during the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock valued at $30,000 after buying an additional 237 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in Alcoa by 5,281.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 581 shares during the last quarter.

Analyst Ratings Changes

Several brokerages recently weighed in on AA. Royal Bank Of Canada set a $70.00 price objective on Alcoa in a research report on Wednesday, July 1st. Morgan Stanley restated an "equal weight" rating and issued a $53.00 target price (down from $79.00) on shares of Alcoa in a research report on Wednesday. Citigroup upped 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. Wells Fargo & Company raised their price objective on Alcoa from $71.00 to $72.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Wall Street Zen lowered shares of Alcoa from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $64.91.

Alcoa Stock Down 0.1%

Shares of NYSE AA opened at $48.69 on Friday. The firm has a market cap of $12.85 billion, a price-to-earnings ratio of 12.33, a PEG ratio of 0.49 and a beta of 1.63. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36. Alcoa has a 52-week low of $28.11 and a 52-week high of $84.38. The business's 50 day moving average is $63.28 and its two-hundred day moving average is $62.68.

Alcoa (NYSE:AA - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The firm had revenue of $3.19 billion for the quarter, compared to analysts' expectations of $3.35 billion. During the same quarter in the prior year, the business earned $2.15 earnings per share. The company's quarterly revenue was down 5.2% on a year-over-year basis. Research analysts predict that Alcoa will post 7.41 EPS for the current year.

Alcoa Announces Dividend

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

Alcoa News Summary

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Wells Fargo raised its price target on Alcoa to $72 from $71 and reiterated an overweight rating, signaling confidence in the stock’s longer-term potential.
• Neutral Sentiment: J.P. Morgan initiated/maintained a hold view and set a new $55 price target, which is above the recent trading level but still suggests limited near-term conviction. Alcoa (AA) Receives a Hold from J.P. Morgan
• Neutral Sentiment: Alcoa is expected to report earnings soon, keeping the stock in focus for a potential catalyst if results or guidance surprise investors. Alcoa (AA) Expected to Post Earnings on Thursday
• Negative Sentiment: Zacks Research downgraded Alcoa from hold to strong sell, adding to bearish sentiment around the name. Alcoa Downgraded by Zacks Research
• Negative Sentiment: Bank of America cut its price target to $51 from $57 and kept an underperform rating, reflecting a more cautious view on valuation and near-term fundamentals. Alcoa NYSE: AA Price Target Lowered to $51.00 at Bank of America
• Negative Sentiment: J.P. Morgan also lowered its price target to $55 from $70 while keeping a neutral rating, reinforcing the recent downgrade trend. Alcoa price target lowered by JPMorgan
• Negative Sentiment: Alcoa was added to Zacks’ Strong Sell list, which may weigh on sentiment as investors look for signs of weakening expectations. New Strong Sell Stocks for July 9th
• Negative Sentiment: Morgan Stanley assigned an equal weight rating, which adds to the overall mixed-to-cautious analyst backdrop. Alcoa Receives Equal Weight Rating from Morgan Stanley

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.

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.