Encompass Capital Advisors LLC Reduces Stake in Alcoa $AA

Key Points

• Encompass Capital Advisors reduced its Alcoa stake by 20.7% in the first quarter, selling 158,251 shares and retaining 605,149 shares valued at approximately $40.1 million.
• Alcoa reported quarterly EPS of $2.12, below the $2.25 analyst consensus, while revenue of $3.97 billion also narrowly missed estimates. The company paid a quarterly dividend of $0.10 per share, equivalent to a 0.9% annual yield.
• Analyst sentiment remains mixed, with six Buy, four Hold and two Sell ratings; the stock has an average “Hold” rating and a consensus price target of $61.09.

Encompass Capital Advisors LLC cut its stake in shares of Alcoa (NYSE:AA - Free Report) by 20.7% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 605,149 shares of the industrial products company's stock after selling 158,251 shares during the period. Alcoa accounts for about 1.2% of Encompass Capital Advisors LLC's portfolio, making the stock its 22nd biggest position. Encompass Capital Advisors LLC owned about 0.23% of Alcoa worth $40,140,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of AA. The Manufacturers Life Insurance Company boosted its holdings in shares of Alcoa by 7.0% in the 1st quarter. The Manufacturers Life Insurance Company now owns 232,642 shares of the industrial products company's stock worth $15,431,000 after purchasing an additional 15,315 shares during the period. Quantinno Capital Management LP raised its holdings in Alcoa by 25.0% during the 1st quarter. Quantinno Capital Management LP now owns 59,265 shares of the industrial products company's stock valued at $3,931,000 after buying an additional 11,859 shares during the period. Lazard Asset Management LLC bought a new stake in Alcoa in the first quarter worth $355,000. Quadcap Wealth Management LLC bought a new stake in Alcoa in the first quarter worth $454,000. Finally, Lombard Odier Asset Management Europe Ltd lifted its position in Alcoa by 90.9% in the first quarter. Lombard Odier Asset Management Europe Ltd now owns 90,258 shares of the industrial products company's stock worth $5,987,000 after buying an additional 42,979 shares during the last quarter.

Alcoa Trading Down 0.3%

Shares of NYSE AA opened at $44.11 on Tuesday. 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 business has a fifty day simple moving average of $59.20 and a two-hundred day simple moving average of $62.00. The firm has a market cap of $11.64 billion, a PE ratio of 9.08, a price-to-earnings-growth ratio of 0.50 and a beta of 1.63. Alcoa has a twelve month low of $28.11 and a twelve month high of $84.38.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share (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 the consensus estimate 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 previous year, the company posted $0.39 EPS. Analysts expect 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 Friday, June 5th. Investors of record on Tuesday, May 19th were paid a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. Alcoa's dividend payout ratio is 8.23%.

Wall Street Analysts Forecast Growth

AA has been the topic of a number of analyst reports. Wells Fargo & Company cut their price objective on shares of Alcoa from $72.00 to $71.00 and set an "overweight" rating on the stock in a research report on Friday, July 17th. Wall Street Zen lowered shares of Alcoa from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Morgan Stanley reaffirmed 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. Argus cut their price target on shares of Alcoa from $73.00 to $55.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Finally, BMO Capital Markets reduced their price objective 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 research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Alcoa currently has an average rating of "Hold" and an average price target of $61.09.

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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