Cibc World Market Inc. Acquires Shares of 35,459 Alcoa $AA

Key Points

• CIBC World Markets initiated a position in Alcoa by purchasing 35,459 shares valued at approximately $1.85 million. Institutional investors and hedge funds collectively own 82.39% of Alcoa’s outstanding stock.
• Analyst sentiment is mixed, with six Buy, four Hold and two Sell ratings; the consensus rating is Hold with a $61.09 price target. Recent firms lowered their price targets, while Zacks Research downgraded the stock to Strong Sell.
• Alcoa reported quarterly EPS of $2.12, below the $2.25 consensus estimate, and revenue of $3.97 billion versus expectations of $3.99 billion. The company maintains a quarterly dividend of $0.10, equivalent to a 0.8% annual yield.

Cibc World Market Inc. bought a new position in Alcoa (NYSE:AA - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 35,459 shares of the industrial products company's stock, valued at approximately $1,849,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Basepoint Wealth LLC purchased a new position in Alcoa during the fourth quarter valued at $25,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Alcoa in the 2nd quarter worth about $25,000. Advisory Services Network LLC purchased a new position in Alcoa during the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd boosted its stake 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 acquiring an additional 581 shares in the last quarter. Finally, Western Wealth Management LLC purchased a new stake in Alcoa in the first quarter worth about $35,000. Hedge funds and other institutional investors own 82.39% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AA. Wells Fargo & Company lowered their target price on shares of Alcoa from $72.00 to $71.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Morgan Stanley restated an "equal weight" rating and issued a $53.00 price target (down from $79.00) on shares of Alcoa in a research note on Wednesday, July 8th. Zacks Research lowered Alcoa from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. BMO Capital Markets lowered their price objective on Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a research note on Friday, July 17th. Finally, Weiss Ratings raised Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, June 17th. Six research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $61.09.

Alcoa Stock Up 3.2%

NYSE:AA opened at $51.32 on Friday. 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 firm 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. Alcoa has a fifty-two week low of $30.21 and a fifty-two week high of $84.38. The firm has a 50-day simple moving average of $49.21 and a two-hundred day simple moving average of $60.03.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly 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). The firm had revenue of $3.97 billion for the quarter, compared to analysts' expectations of $3.99 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. During the same quarter in the previous year, the company earned $0.39 EPS. Analysts predict that Alcoa will post 6.55 earnings per share for the current fiscal year.

Alcoa Announces Dividend

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

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.

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