Hsbc Holdings PLC Boosts Holdings in Alcoa $AA

Key Points

• Hsbc Holdings PLC increased its stake in Alcoa by 252.6% in the first quarter, owning 180,953 shares valued at $5,446,000 as per its recent SEC filing.
• Alcoa reported a quarterly EPS of $0.39, surpassing estimates, and demonstrated a 3.9% year-over-year revenue increase to $3.02 billion.
• The company announced a quarterly dividend of $0.10 per share, resulting in a 1.3% yield and a payout ratio of 10.44%.

Hsbc Holdings PLC raised its position in Alcoa (NYSE:AA - Free Report) by 252.6% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 180,953 shares of the industrial products company's stock after acquiring an additional 129,631 shares during the period. Hsbc Holdings PLC owned approximately 0.07% of Alcoa worth $5,446,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Quantbot Technologies LP lifted its holdings in shares of Alcoa by 41.0% in the 1st quarter. Quantbot Technologies LP now owns 425,835 shares of the industrial products company's stock worth $12,988,000 after purchasing an additional 123,765 shares in the last quarter. Algert Global LLC lifted its holdings in shares of Alcoa by 68.8% in the 1st quarter. Algert Global LLC now owns 263,410 shares of the industrial products company's stock worth $8,034,000 after purchasing an additional 107,353 shares in the last quarter. Corient IA LLC bought a new position in shares of Alcoa in the 1st quarter worth $261,000. Tejara Capital Ltd bought a new position in shares of Alcoa in the 1st quarter worth $1,693,000. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Alcoa by 33.9% in the first quarter. Dimensional Fund Advisors LP now owns 6,803,086 shares of the industrial products company's stock valued at $207,490,000 after buying an additional 1,721,222 shares in the last quarter.

Analyst Ratings Changes

AA has been the topic of a number of recent research reports. B. Riley dropped their price objective on shares of Alcoa from $38.00 to $37.00 and set a "buy" rating on the stock in a research note on Tuesday, July 15th. Morgan Stanley dropped their price target on shares of Alcoa from $40.00 to $38.00 and set an "overweight" rating on the stock in a research report on Friday, July 18th. Bank of America raised their price target on shares of Alcoa from $26.00 to $27.00 and gave the company an "underperform" rating in a research report on Thursday, July 17th. Citigroup upgraded Alcoa to a "buy" rating and set a $42.00 target price on the stock in a report on Tuesday, July 8th. Finally, UBS Group restated a "neutral" rating and issued a $31.00 target price on shares of Alcoa in a report on Thursday, May 15th. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $41.23.

Alcoa Stock Up 0.8%

AA stock traded up $0.25 during trading on Friday, reaching $32.17. The stock had a trading volume of 4,180,177 shares, compared to its average volume of 4,951,723. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $8.33 billion, a price-to-earnings ratio of 8.40, a P/E/G ratio of 0.18 and a beta of 2.26. Alcoa has a one year low of $21.53 and a one year high of $47.77. The company's 50 day moving average is $30.38 and its two-hundred day moving average is $29.54.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Wednesday, July 16th. The industrial products company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.29 by $0.10. Alcoa had a net margin of 7.86% and a return on equity of 19.18%. The firm had revenue of $3.02 billion for the quarter, compared to analysts' expectations of $2.96 billion. During the same quarter last year, the firm earned $0.16 EPS. The company's quarterly revenue was up 3.9% compared to the same quarter last year. Equities research analysts forecast that Alcoa will post 4.43 EPS for the current year.

Alcoa Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Tuesday, August 12th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was 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.