Alcoa $AA Stock Holdings Lowered by Encompass Capital Advisors LLC

Key Points

• Encompass Capital Advisors LLC significantly reduced its stake in Alcoa by 71.9%, selling 686,583 shares and retaining 268,923 shares worth approximately $8.2 million.
• Alcoa reported a quarterly earnings per share of $0.39, surpassing the consensus estimate of $0.29, and revenue increased by 3.9% year-over-year to $3.02 billion.
• The company declared a quarterly dividend of $0.10 per share, resulting in an annualized yield of 1.3%, with a payout ratio of 10.44%.

Encompass Capital Advisors LLC decreased its position in shares of Alcoa (NYSE:AA - Free Report) by 71.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 268,923 shares of the industrial products company's stock after selling 686,583 shares during the period. Encompass Capital Advisors LLC owned about 0.10% of Alcoa worth $8,202,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in AA. Versant Capital Management Inc increased its stake in Alcoa by 134.7% during the 1st quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock worth $28,000 after buying an additional 520 shares during the period. Point72 Hong Kong Ltd purchased a new stake in Alcoa during the 4th quarter worth $36,000. Montag A & Associates Inc. bought a new stake in shares of Alcoa in the 1st quarter worth about $40,000. Continuum Advisory LLC increased its position in shares of Alcoa by 30.7% in the 4th quarter. Continuum Advisory LLC now owns 1,470 shares of the industrial products company's stock worth $56,000 after purchasing an additional 345 shares during the last quarter. Finally, Quarry LP bought a new stake in shares of Alcoa in the 1st quarter worth about $57,000.

Alcoa Price Performance

Shares of NYSE:AA traded up $0.20 during trading on Monday, reaching $32.03. The company had a trading volume of 6,664,843 shares, compared to its average volume of 5,909,117. The firm's fifty day moving average is $30.64 and its 200 day moving average is $29.36. The firm has a market capitalization of $8.29 billion, a PE ratio of 8.36, a price-to-earnings-growth ratio of 0.18 and a beta of 2.26. Alcoa has a twelve month low of $21.53 and a twelve month high of $47.77. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.65.

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

Alcoa Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on AA shares. Barclays boosted their target price on shares of Alcoa to $31.00 and gave the stock a "hold" rating in a research report on Friday, May 16th. UBS Group restated a "neutral" rating and issued a $31.00 target price on shares of Alcoa in a research report on Thursday, May 15th. B. Riley decreased their target price on shares of Alcoa from $38.00 to $37.00 and set a "buy" rating for the company in a research report on Tuesday, July 15th. JPMorgan Chase & Co. decreased their target price on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a research report on Thursday, July 17th. Finally, Bank of America upped their target price on shares of Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research report on Thursday, July 17th. Six equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Alcoa has an average rating of "Hold" and a consensus price target of $41.67.

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.