Bank of America Corp DE Acquires Shares of 674,486 Alcoa $AA

Key Points

• Bank of America acquired 674,486 Alcoa shares during the second quarter, worth approximately $35.2 million and representing a 0.26% stake. Other institutions, including BlackRock and Bank of New York Mellon, also increased or initiated significant positions.
• Alcoa’s shares opened at $44.73, with the company valued at approximately $11.8 billion. The latest quarterly results missed expectations, with earnings of $2.12 per share versus the $2.25 consensus and revenue of $3.97 billion.
• Analyst sentiment remains mixed but centers on a “Hold” rating, with a consensus price target of $60.09. Alcoa also maintains a quarterly dividend of $0.10 per share, equivalent to a 0.9% annualized yield.

Bank of America Corp DE acquired a new stake in Alcoa (NYSE:AA - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 674,486 shares of the industrial products company's stock, valued at approximately $35,168,000. Bank of America Corp DE owned 0.26% of Alcoa at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the stock. BlackRock Inc. bought a new stake in Alcoa in the second quarter valued at $1,528,523,000. Geode Capital Management LLC lifted its holdings in shares of Alcoa by 5.5% during the fourth quarter. Geode Capital Management LLC now owns 6,655,655 shares of the industrial products company's stock valued at $389,621,000 after acquiring an additional 349,426 shares during the period. Bank of New York Mellon Corp boosted its stake in shares of Alcoa by 211.7% in the 4th quarter. Bank of New York Mellon Corp now owns 6,254,017 shares of the industrial products company's stock valued at $332,338,000 after purchasing an additional 4,247,559 shares in the last quarter. Castle Hook Partners LP bought a new stake in shares of Alcoa in the 4th quarter worth about $210,874,000. Finally, Amundi increased its position in shares of Alcoa by 47.8% during the 1st quarter. Amundi now owns 2,009,013 shares of the industrial products company's stock worth $133,258,000 after purchasing an additional 649,693 shares in the last quarter.

Insider Buying and Selling

In other Alcoa news, EVP Renato Bacchi sold 700 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $51.02, for a total value of $35,714.00. Following the transaction, the executive vice president directly owned 74,930 shares of the company's stock, valued at approximately $3,822,928.60. This trade represents a 0.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Tammi A. Jones sold 15,628 shares of Alcoa stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the sale, the executive vice president directly owned 39,819 shares of the company's stock, valued at $2,014,841.40. This represents a 28.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Alcoa Stock Up 0.7%

Shares of AA opened at $44.73 on Tuesday. The firm has a market capitalization of $11.80 billion, a price-to-earnings ratio of 9.20, a PEG ratio of 0.50 and a beta of 1.63. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. The business's fifty day moving average price is $48.26 and its two-hundred day moving average price is $58.51. Alcoa has a 52 week low of $30.81 and a 52 week high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts' consensus estimates of $2.25 by ($0.13). The firm had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. Alcoa had a return on equity of 18.90% and a net margin of 9.48%.During the same quarter in the previous year, the firm earned $0.39 EPS. On average, analysts predict that Alcoa will post 6.52 earnings per share for the current year.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. Alcoa's payout ratio is currently 8.23%.

Wall Street Analyst Weigh In

A number of research firms have commented on AA. 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. Bank of America cut their target price on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a research note on Thursday, July 9th. BMO Capital Markets reduced their target price on Alcoa from $60.00 to $55.00 and set a "market perform" rating on the stock in a report on Friday, July 17th. Weiss Ratings reissued a "hold (c+)" rating on shares of Alcoa in a research note on Monday, September 14th. Finally, Wells Fargo & Company decreased their target price on Alcoa from $71.00 to $60.00 and set an "overweight" rating on the stock in a report on Friday. Six equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $60.09.

Alcoa Company Profile

Alcoa Corporation NYSE: AA is a global producer of bauxite, alumina and aluminum. Its operations span the aluminum value chain, including bauxite mining, alumina refining, aluminum smelting, casting and the production of select value-added aluminum products. The company serves customers in industries such as transportation, aerospace, construction, packaging, consumer products and energy.

Founded in 1888 as the Pittsburgh Reduction Company, Alcoa played a major role in developing the commercial aluminum industry and adopted the Alcoa name in 1907.

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