Capstone Investment Advisors LLC Invests $10.50 Million in Alcoa $AA

Key Points

• Capstone Investment Advisors acquired 201,349 Alcoa shares worth approximately $10.5 million, giving it a 0.08% stake. Institutional investors and hedge funds collectively own 82.39% of Alcoa.
• Alcoa’s latest quarterly results fell short of expectations, with EPS of $2.12 versus the $2.25 consensus and revenue of $3.97 billion compared with estimates of $3.99 billion.
• Analysts maintain a consensus “Hold” rating, with an average price target of $61.09 versus the stock’s reported $51.32 price. Alcoa also declared a quarterly dividend of $0.10 per share, representing a 0.8% yield.

Capstone Investment Advisors LLC purchased a new position in shares of Alcoa (NYSE:AA - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 201,349 shares of the industrial products company's stock, valued at approximately $10,498,000. Capstone Investment Advisors LLC owned 0.08% of Alcoa at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of AA. Basepoint Wealth LLC acquired a new stake in shares of Alcoa in the 4th quarter worth $25,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Alcoa during the second quarter worth about $25,000. Advisory Services Network LLC purchased a new position in Alcoa during the third quarter worth about $27,000. Caitong International Asset Management Co. Ltd raised its holdings in Alcoa by 5,281.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock worth $31,000 after purchasing an additional 581 shares in the last quarter. Finally, Western Wealth Management LLC acquired a new stake in Alcoa in the first quarter valued at about $35,000. 82.39% of the stock is owned by institutional investors and hedge funds.

Alcoa Stock Performance

AA opened at $51.32 on Friday. Alcoa has a 1-year low of $30.21 and a 1-year high of $84.38. The stock has a market cap of $13.54 billion, a P/E ratio of 10.56, a P/E/G ratio of 0.56 and a beta of 1.63. The stock's 50 day simple moving average is $49.21 and its 200 day simple moving average is $60.03. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a return on equity of 18.90% and a net margin of 9.48%.During the same period in the prior year, the firm posted $0.39 earnings per share. As a group, equities analysts anticipate that Alcoa will post 6.55 EPS for the current fiscal year.

Alcoa Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, August 11th. Alcoa's payout ratio is 8.23%.

Analysts Set New Price Targets

Several research firms have issued reports on AA. Wall Street Zen upgraded Alcoa from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. UBS Group decreased their price target on Alcoa from $80.00 to $68.00 and set a "buy" rating on the stock in a research note on Tuesday, June 30th. JPMorgan Chase & Co. cut their price objective on Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a research report on Friday, July 17th. Morgan Stanley reissued an "equal weight" rating and issued a $53.00 target price (down from $79.00) on shares of Alcoa in a report on Wednesday, July 8th. Finally, BMO Capital Markets decreased their target price on shares of Alcoa from $60.00 to $55.00 and set a "market perform" rating on the stock in a research report on Friday, July 17th. Six analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Alcoa currently has a consensus rating of "Hold" and an average 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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