BlackRock Inc. Buys New Stake in Alcoa $AA

Key Points

• BlackRock acquired 29.3 million Alcoa shares in the second quarter, worth approximately $1.53 billion, giving it an 11.11% stake in the aluminum producer.
• Alcoa reported quarterly EPS of $2.12, below the $2.25 consensus estimate, while revenue of $3.97 billion also narrowly missed expectations. The stock opened at $50.65, down 1.7%.
• Analysts maintain a consensus “Hold” rating with an average price target of $61.09. Alcoa also declared a quarterly dividend of $0.10 per share, representing a 0.8% yield.

BlackRock Inc. bought a new stake in Alcoa (NYSE:AA - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 29,315,742 shares of the industrial products company's stock, valued at approximately $1,528,523,000. BlackRock Inc. owned 11.11% of Alcoa as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Pallas Capital Advisors LLC acquired a new stake in shares of Alcoa in the 2nd quarter valued at $955,000. Deutsche Bank AG acquired a new stake in shares of Alcoa during the 2nd quarter worth about $55,308,000. Perigon Wealth Management LLC acquired a new stake in shares of Alcoa during the 2nd quarter worth about $878,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Alcoa during the 2nd quarter valued at about $25,000. Finally, Persistent Asset Partners Ltd bought a new position in Alcoa during the 2nd quarter valued at about $391,000.

Alcoa Stock Down 1.7%

Alcoa stock opened at $50.65 on Friday. The company's 50-day moving average price is $50.48 and its two-hundred day moving average price is $60.31. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30. The stock has a market cap of $13.37 billion, a P/E ratio of 10.42, a P/E/G ratio of 0.58 and a beta of 1.63. Alcoa has a twelve month low of $28.92 and a twelve month high of $84.38.

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

Alcoa Dividend Announcement

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

Wall Street Analyst Weigh In

Several research firms have recently commented on AA. Morgan Stanley reissued an "equal weight" rating and set a $53.00 price target (down from $79.00) on shares of Alcoa in a research note on Wednesday, July 8th. JPMorgan Chase & Co. decreased their price objective on Alcoa from $55.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, July 17th. Argus lowered their target price on Alcoa from $73.00 to $55.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. Bank of America dropped their target price on Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a research report on Thursday, July 9th. Finally, B. Riley Financial decreased their price target on Alcoa from $92.00 to $80.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Six research 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. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $61.09.

Alcoa 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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