Bank of America Corp DE Reduces Stock Position in Alcoa $AA

Key Points

• Bank of America reduced its Alcoa stake by 50.8% in the first quarter, selling 926,636 shares and retaining 896,157 shares worth approximately $59.4 million.
• Analyst sentiment is mixed, with Alcoa carrying a consensus “Hold” rating and an average price target of $61.09; several firms recently lowered their targets, while ratings range from “Strong Sell” to “Buy.”
• Alcoa reported quarterly EPS of $2.12, below the $2.25 consensus estimate, while revenue of $3.97 billion was slightly below expectations. The company declared a quarterly dividend of $0.10 per share, representing a 0.8% yield.

Bank of America Corp DE cut its holdings in Alcoa (NYSE:AA - Free Report) by 50.8% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 896,157 shares of the industrial products company's stock after selling 926,636 shares during the period. Bank of America Corp DE owned about 0.34% of Alcoa worth $59,442,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Moran Wealth Management LLC acquired a new position in Alcoa in the fourth quarter valued at approximately $2,631,000. Merit Financial Group LLC raised its holdings in Alcoa by 114.2% during the fourth quarter. Merit Financial Group LLC now owns 28,945 shares of the industrial products company's stock worth $1,538,000 after purchasing an additional 15,432 shares in the last quarter. Evergreen Capital Management LLC acquired a new stake in Alcoa during the fourth quarter worth approximately $1,399,000. Brendel Financial Advisors LLC purchased a new stake in shares of Alcoa during the 4th quarter worth approximately $3,417,000. Finally, Fifth Third Bancorp lifted its position in shares of Alcoa by 3,061.2% during the 1st quarter. Fifth Third Bancorp now owns 63,098 shares of the industrial products company's stock worth $4,185,000 after buying an additional 61,102 shares during the last quarter.

Analysts Set New Price Targets

A number of research analysts recently commented on AA shares. Morgan Stanley reaffirmed 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, July 8th. JPMorgan Chase & Co. reduced their price target on shares of Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a research report on Friday, July 17th. Wall Street Zen upgraded shares of Alcoa from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Argus dropped their price objective on Alcoa from $73.00 to $55.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Finally, Zacks Research lowered Alcoa from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 8th. Six equities research 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. According to data from MarketBeat.com, Alcoa presently has a consensus rating of "Hold" and a consensus price target of $61.09.

Alcoa Price Performance

AA stock opened at $51.65 on Tuesday. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $13.63 billion, a P/E ratio of 10.63, a PEG ratio of 0.57 and a beta of 1.63. The business has a 50 day simple moving average of $54.21 and a 200-day simple moving average of $60.85. Alcoa has a twelve month low of $28.92 and a twelve month high of $84.38.

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

Alcoa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th will be paid a $0.10 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. Alcoa's payout ratio is currently 8.23%.

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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