Gateway Investment Advisers LLC Buys Shares of 21,559 Alcoa $AA

Key Points

• Gateway Investment Advisers LLC opened a new position in Alcoa during the fourth quarter, buying 21,559 shares valued at about $1.146 million.
• Institutional interest in Alcoa remains high, with 82.39% of the stock owned by institutional investors, while several other firms also added or initiated positions.
• Alcoa recently reported weaker-than-expected Q1 results with EPS of $1.40 versus $1.60 expected and revenue of $3.19 billion versus $3.35 billion expected, even as the company declared a $0.10 quarterly dividend.

Gateway Investment Advisers LLC bought a new position in Alcoa (NYSE:AA - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 21,559 shares of the industrial products company's stock, valued at approximately $1,146,000.

A number of other large investors have also made changes to their positions in the company. Advisory Services Network LLC bought a new position in shares of Alcoa in the 3rd quarter worth approximately $27,000. Raleigh Capital Management Inc. boosted its holdings in shares of Alcoa by 52,500.0% in the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock worth $28,000 after buying an additional 525 shares during the last quarter. Root Financial Partners LLC bought a new stake in Alcoa during the third quarter valued at approximately $29,000. CoreCap Advisors LLC grew its position in Alcoa by 74.1% during the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock valued at $30,000 after buying an additional 237 shares during the period. Finally, Orion Capital Management LLC purchased a new stake in Alcoa during the third quarter valued at approximately $33,000. 82.39% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

AA has been the topic of several recent research reports. Wall Street Zen downgraded shares of Alcoa from a "buy" rating to a "hold" rating in a research report on Saturday. Morgan Stanley raised shares of Alcoa from an "equal weight" rating to an "overweight" rating and boosted their price objective for the company from $64.00 to $80.00 in a research report on Thursday, April 9th. Weiss Ratings upgraded Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 29th. Wells Fargo & Company set a $68.00 target price on Alcoa in a report on Thursday, March 12th. Finally, JPMorgan Chase & Co. lifted their target price on Alcoa from $68.00 to $70.00 and gave the company a "neutral" rating in a research report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $64.27.

Alcoa Stock Up 0.8%

Shares of AA stock opened at $63.14 on Friday. The stock has a market cap of $16.66 billion, a P/E ratio of 15.99 and a beta of 1.51. Alcoa has a 52 week low of $25.78 and a 52 week high of $75.70. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36. The company's fifty day simple moving average is $65.08 and its two-hundred day simple moving average is $55.44.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 earnings per share for the quarter, missing analysts' consensus estimates of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The firm had revenue of $3.19 billion for the quarter, compared to analysts' expectations of $3.35 billion. During the same quarter in the previous year, the business earned $2.15 EPS. The company's revenue for the quarter was down 5.2% on a year-over-year basis. Analysts predict that Alcoa will post 7.95 EPS for the current fiscal year.

Alcoa Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.6%. The ex-dividend date is Tuesday, May 19th. Alcoa's dividend payout ratio (DPR) is currently 10.13%.

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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