Douglas Lane & Associates LLC Reduces Holdings in Alcoa $AA

Key Points

• Douglas Lane & Associates LLC reduced its stake in Alcoa by 6.6%, selling 92,319 shares, and holding a total of 1.3 million shares valued at approximately $38.6 million at the end of the second quarter.
• Recent analyst ratings for Alcoa show mixed signals, with Morgan Stanley lowering its price target from $40 to $38, while Citigroup upgraded the stock to a "buy" rating with a target price of $42.
• Alcoa announced a quarterly dividend of $0.10 per share, which represents an annual yield of 1.2% and reflects a payout ratio of 10.44%.

Douglas Lane & Associates LLC lessened its stake in Alcoa (NYSE:AA - Free Report) by 6.6% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,309,565 shares of the industrial products company's stock after selling 92,319 shares during the quarter. Douglas Lane & Associates LLC owned about 0.51% of Alcoa worth $38,645,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Versant Capital Management Inc increased its position in shares of Alcoa by 134.7% during the first quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 520 shares during the last quarter. Point72 Hong Kong Ltd purchased a new position in Alcoa during the 4th quarter valued at about $36,000. Montag A & Associates Inc. bought a new stake in shares of Alcoa in the 1st quarter worth approximately $40,000. Continuum Advisory LLC lifted its position in Alcoa by 30.7% in the 4th quarter. Continuum Advisory LLC now owns 1,470 shares of the industrial products company's stock valued at $56,000 after acquiring an additional 345 shares in the last quarter. Finally, Quarry LP purchased a new stake in shares of Alcoa in the 1st quarter worth $57,000.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on AA shares. Bank of America raised their price objective on shares of Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research note on Thursday, July 17th. UBS Group increased their target price on shares of Alcoa from $31.00 to $34.00 and gave the stock a "neutral" rating in a report on Friday. Citigroup upgraded shares of Alcoa to a "buy" rating and set a $42.00 price target on the stock in a research note on Tuesday, July 8th. B. Riley lifted their target price on shares of Alcoa from $37.00 to $38.00 and gave the stock a "buy" rating in a research report on Tuesday, September 9th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, July 17th. Six analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Alcoa has a consensus rating of "Hold" and an average target price of $42.09.

Alcoa Stock Performance

Shares of AA traded down $0.03 during midday trading on Friday, reaching $32.69. 2,186,189 shares of the stock were exchanged, compared to its average volume of 5,902,328. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.41. Alcoa has a twelve month low of $21.53 and a twelve month high of $47.77. The company has a market cap of $8.46 billion, a P/E ratio of 8.53, a PEG ratio of 0.18 and a beta of 2.26. The stock's 50 day simple moving average is $30.96 and its 200 day simple moving average is $29.35.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The industrial products company reported $0.39 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.10. The firm had revenue of $3.02 billion for the quarter, compared to analysts' expectations of $2.96 billion. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The business's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.16 EPS. On average, sell-side analysts expect that Alcoa will post 4.43 earnings per share for the current year.

Alcoa Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Stockholders of record on Tuesday, August 12th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Tuesday, August 12th. Alcoa's dividend payout ratio is currently 10.44%.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.