HMS Capital Management LLC Buys New Shares in Alcoa $AA

Key Points

• HMS Capital Management LLC has acquired 20,560 shares of Alcoa (NYSE: AA) valued at approximately $627,000 during Q1.
• Alcoa reported earnings of $0.39 per share for the last quarter, surpassing analysts' estimates of $0.29, with revenues of $3.02 billion.
• The company announced a quarterly dividend of $0.10 per share, with a payout ratio of 10.44% and a yield of 1.3% set to be paid on August 28th.

HMS Capital Management LLC bought a new position in Alcoa (NYSE:AA - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 20,560 shares of the industrial products company's stock, valued at approximately $627,000.

A number of other institutional investors and hedge funds also recently modified their holdings of AA. Versant Capital Management Inc boosted its position in shares of Alcoa by 134.7% in the 1st quarter. Versant Capital Management Inc now owns 906 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 520 shares during the period. Point72 Hong Kong Ltd purchased a new stake in Alcoa during the fourth quarter valued at about $36,000. Montag A & Associates Inc. acquired a new position in shares of Alcoa in the first quarter worth about $40,000. Continuum Advisory LLC increased its position in shares of Alcoa by 30.7% in the fourth quarter. Continuum Advisory LLC now owns 1,470 shares of the industrial products company's stock worth $56,000 after acquiring an additional 345 shares in the last quarter. Finally, GAMMA Investing LLC increased its position in shares of Alcoa by 58.8% in the first quarter. GAMMA Investing LLC now owns 2,298 shares of the industrial products company's stock worth $70,000 after acquiring an additional 851 shares in the last quarter.

Analyst Upgrades and Downgrades

Several brokerages recently commented on AA. UBS Group restated a "neutral" rating and issued a $31.00 price target on shares of Alcoa in a research report on Thursday, May 15th. Barclays increased their target price on Alcoa to $31.00 and gave the company a "hold" rating in a report on Friday, May 16th. Morgan Stanley lowered their price target on Alcoa from $40.00 to $38.00 and set an "overweight" rating on the stock in a report on Friday, July 18th. Citigroup raised Alcoa to a "buy" rating and set a $42.00 price objective for the company in a research note on Tuesday, July 8th. Finally, Bank of America raised their price objective on Alcoa from $26.00 to $27.00 and gave the stock an "underperform" rating in a research report on Thursday, July 17th. Seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $41.23.

Alcoa Stock Up 0.5%

Shares of Alcoa stock traded up $0.1530 during midday trading on Monday, reaching $31.8330. 1,603,109 shares of the company's stock traded hands, compared to its average volume of 5,927,326. Alcoa has a 52 week low of $21.53 and a 52 week high of $47.77. The company's 50 day simple moving average is $30.03 and its 200 day simple moving average is $29.70. The company has a market cap of $8.24 billion, a price-to-earnings ratio of 8.31, a price-to-earnings-growth ratio of 0.18 and a beta of 2.24. 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 data 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. Alcoa had a return on equity of 19.18% and a net margin of 7.86%.The business had revenue of $3.02 billion for the quarter, compared to analyst estimates of $2.96 billion. During the same quarter in the prior year, the firm posted $0.16 EPS. The firm's revenue for the quarter was up 3.9% on a year-over-year basis. Equities analysts expect that Alcoa will post 4.43 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Tuesday, August 12th will be issued a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, August 12th. Alcoa's dividend payout ratio (DPR) is 10.44%.

About Alcoa

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.