Hennessy Advisors Inc. Acquires New Position in Alcoa $AA

Key Points

• Hennessy Advisors acquired 154,000 Alcoa shares during the second quarter, valued at approximately $8.03 million and representing about 0.06% of the company.
• Alcoa’s shares opened at $50.35, compared with a 12-month range of $30.21 to $84.38. The company recently reported quarterly EPS of $2.12, below analysts’ $2.25 estimate, and maintains a $0.10 quarterly dividend.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $61.09; several firms recently lowered their targets despite maintaining Buy or Overweight ratings.

Hennessy Advisors Inc. acquired a new stake in shares of Alcoa (NYSE:AA - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 154,000 shares of the industrial products company's stock, valued at approximately $8,030,000. Hennessy Advisors Inc. owned approximately 0.06% of Alcoa as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of the company. Basepoint Wealth LLC acquired a new position in shares of Alcoa in the 4th quarter worth approximately $25,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Alcoa during the 2nd quarter valued at approximately $25,000. Advisory Services Network LLC acquired a new stake in shares of Alcoa during the 3rd quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd lifted 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 purchasing an additional 581 shares during the last quarter. Finally, Western Wealth Management LLC acquired a new position in Alcoa in the first quarter worth $35,000.

Alcoa Price Performance

Shares of AA opened at $50.35 on Friday. Alcoa has a 12 month low of $30.21 and a 12 month high of $84.38. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92. The stock has a fifty day moving average price of $49.03 and a 200 day moving average price of $59.97. The company has a market cap of $13.29 billion, a P/E ratio of 10.36, a PEG ratio of 0.57 and a beta of 1.63.

Alcoa (NYSE:AA - Get Free Report) last posted its 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). Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The company had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $3.99 billion. During the same quarter in the previous year, the business posted $0.39 earnings per share. On average, research analysts forecast that Alcoa will post 6.55 earnings per share for the current year.

Alcoa Announces Dividend

The company 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 was Tuesday, August 11th. This represents a $0.40 annualized dividend and a yield of 0.8%. Alcoa's dividend payout ratio (DPR) is currently 8.23%.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Argus lowered their target price on shares of Alcoa from $73.00 to $55.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. BMO Capital Markets reduced their price target 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. UBS Group decreased their price target on shares of Alcoa from $80.00 to $68.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Wells Fargo & Company dropped their price objective on shares of Alcoa from $72.00 to $71.00 and set an "overweight" rating on the stock in a research note on Friday, July 17th. Finally, Weiss Ratings raised shares of Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, June 17th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Alcoa has a consensus rating of "Hold" and a consensus target price of $61.09.

Insider Transactions at Alcoa

In other Alcoa news, EVP Tammi A. Jones sold 15,628 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $50.60, for a total transaction of $790,776.80. Following the completion of the transaction, the executive vice president directly owned 39,819 shares of the company's stock, valued at $2,014,841.40. The trade was a 28.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

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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