Hsbc Holdings PLC Boosts Holdings in Alcoa $AA

Key Points

• HSBC Holdings increased its Alcoa stake by 19.7% in the second quarter, purchasing 60,257 additional shares to hold 366,741 shares worth approximately $19.5 million.
• Analyst sentiment remains mixed, with six Buy, four Hold, and two Sell ratings. The stock carries an overall “Hold” consensus and an average price target of $61.09, while several firms recently lowered their targets.
• Alcoa reported quarterly EPS of $2.12, below the $2.25 consensus estimate, and revenue of $3.97 billion versus expectations of $3.99 billion. The company also paid a quarterly dividend of $0.10 per share, representing a 0.8% annualized yield.

Hsbc Holdings PLC grew its position in Alcoa (NYSE:AA - Free Report) by 19.7% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 366,741 shares of the industrial products company's stock after buying an additional 60,257 shares during the period. Hsbc Holdings PLC owned approximately 0.14% of Alcoa worth $19,468,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in AA. NewEdge Advisors LLC lifted its holdings in Alcoa by 1,098.0% in the first quarter. NewEdge Advisors LLC now owns 11,704 shares of the industrial products company's stock valued at $357,000 after acquiring an additional 10,727 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Alcoa by 0.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 646,609 shares of the industrial products company's stock valued at $19,722,000 after purchasing an additional 4,624 shares during the period. Invesco Ltd. grew its stake in shares of Alcoa by 1.9% during the 2nd quarter. Invesco Ltd. now owns 640,528 shares of the industrial products company's stock valued at $18,902,000 after purchasing an additional 12,008 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of Alcoa by 173.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,040 shares of the industrial products company's stock valued at $60,000 after purchasing an additional 1,295 shares during the last quarter. Finally, First Trust Advisors LP increased its position in shares of Alcoa by 320.1% during the 2nd quarter. First Trust Advisors LP now owns 269,982 shares of the industrial products company's stock valued at $7,967,000 after purchasing an additional 205,717 shares during the last quarter.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Bank of America decreased their target price on Alcoa from $57.00 to $51.00 and set an "underperform" rating on the stock in a report on Thursday, July 9th. Royal Bank Of Canada set a $70.00 price target on Alcoa in a report on Wednesday, July 1st. BMO Capital Markets reduced their price target on Alcoa from $60.00 to $55.00 and set a "market perform" rating for the company in a research report on Friday, July 17th. Zacks Research cut Alcoa from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Finally, JPMorgan Chase & Co. cut their price objective on Alcoa from $55.00 to $52.00 and set a "neutral" rating for the company in a research note on Friday, July 17th. Six investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $61.09.

Insider Transactions at Alcoa

In other Alcoa news, EVP Tammi A. Jones sold 15,628 shares of the 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 transaction, the executive vice president directly owned 39,819 shares in the company, valued at $2,014,841.40. This represents a 28.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Renato Bacchi sold 700 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $51.02, for a total transaction of $35,714.00. Following the transaction, the executive vice president owned 74,930 shares in the company, valued at approximately $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Alcoa Stock Performance

Shares of NYSE:AA opened at $51.78 on Wednesday. The firm has a fifty day simple moving average of $48.56 and a two-hundred day simple moving average of $59.47. Alcoa has a 52 week low of $30.71 and a 52 week high of $84.38. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $13.66 billion, a P/E ratio of 10.65, a PEG ratio of 0.56 and a beta of 1.63.

Alcoa (NYSE:AA - Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The industrial products company reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate 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 period in the previous year, the business earned $0.39 earnings per share. On average, analysts expect that Alcoa will post 6.55 earnings per share for the current fiscal year.

Alcoa Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Tuesday, August 11th. Alcoa's dividend payout ratio is currently 8.23%.

About Alcoa

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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