Hsbc Holdings PLC Sells 311,195 Shares of Alcoa $AA

Key Points

• HSBC Holdings PLC reduced its Alcoa stake by 59.5% in the fourth quarter, selling 311,195 shares and leaving it with 211,873 shares worth about $11.3 million.
• Analysts have turned more cautious on Alcoa, with several lowering price targets; Morgan Stanley cut its target to $53 and kept an Equal-weight view, while the overall consensus rating remains Hold with a $64 target.
• Alcoa reported Q1 earnings below expectations, posting EPS of $1.40 versus $1.60 expected and revenue of $3.19 billion versus $3.35 billion estimated, even as it continued paying a quarterly dividend of $0.10 per share.

Hsbc Holdings PLC cut its stake in Alcoa (NYSE:AA - Free Report) by 59.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 211,873 shares of the industrial products company's stock after selling 311,195 shares during the period. Hsbc Holdings PLC owned approximately 0.08% of Alcoa worth $11,305,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Rockefeller Capital Management L.P. lifted its stake in shares of Alcoa by 4,124.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 38,233 shares of the industrial products company's stock valued at $2,032,000 after buying an additional 37,328 shares during the period. World Investment Advisors bought a new position in Alcoa during the fourth quarter valued at about $246,000. Corient Private Wealth LLC increased its stake in Alcoa by 30.4% during the fourth quarter. Corient Private Wealth LLC now owns 13,445 shares of the industrial products company's stock valued at $715,000 after acquiring an additional 3,138 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 581 shares in the last quarter. Finally, Compound Planning Inc. acquired a new position in Alcoa in the 4th quarter valued at approximately $306,000.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on AA shares. BMO Capital Markets lifted their price objective on Alcoa from $65.00 to $75.00 and gave the stock a "market perform" rating in a report on Thursday, April 9th. Wall Street Zen cut Alcoa from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Wells Fargo & Company decreased their price target on shares of Alcoa from $82.00 to $71.00 and set an "overweight" rating on the stock in a research note on Thursday, June 25th. B. Riley Financial lowered their price target on shares of Alcoa from $92.00 to $80.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, Weiss Ratings upgraded shares of Alcoa from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 17th. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Alcoa currently has an average rating of "Hold" and a consensus price target of $64.00.

Alcoa Trading Down 1.1%

Shares of AA opened at $48.47 on Thursday. The company has a current ratio of 1.48, a quick ratio of 0.88 and a debt-to-equity ratio of 0.36. The stock has a market cap of $12.79 billion, a PE ratio of 12.27, a PEG ratio of 0.67 and a beta of 1.63. Alcoa has a 1 year low of $28.11 and a 1 year high of $84.38. The stock has a 50 day simple moving average of $63.84 and a 200-day simple moving average of $62.80.

Alcoa (NYSE:AA - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The company had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same period in the prior year, the firm earned $2.15 EPS. Alcoa's quarterly revenue was down 5.2% compared to the same quarter last year. On average, sell-side analysts predict that Alcoa will post 8.48 EPS for the current fiscal year.

Alcoa Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Tuesday, May 19th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Tuesday, May 19th. Alcoa's payout ratio is currently 10.13%.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Negative Sentiment: Morgan Stanley downgraded Alcoa to Equal-weight from a more favorable view, cutting its price target to $53 from $79. The firm said the changing supply backdrop should favor copper, gold, and silver, while aluminum is likely headed into surplus and iron ore remains under pressure. Morgan Stanley upgrades Ivanhoe Mines, cuts Alcoa and Vale on metals outlook
• Negative Sentiment: Another report noted Morgan Stanley reaffirmed its Equal-weight rating on Alcoa while reducing the price target from $79 to $53, reinforcing a more cautious stance on the stock’s near-term upside. Alcoa had its "equal weight" rating reaffirmed by Morgan Stanley
• Negative Sentiment: B. Riley Financial also lowered its price target on Alcoa to $80 from $92, even while keeping a Buy rating. The cut adds to the sense that analysts see less room for a sustained move higher in the stock. Alcoa NYSE: AA Price Target Lowered to $80.00 at B. Riley Financial
• Neutral Sentiment: Recent market commentary and analyst-call roundups have kept Alcoa in focus, but the main driver remains the softer outlook for aluminum prices compared with other metals. Here Are Wednesday’s Best Wall Street Analyst Research Calls: Alcoa, Commercial Metals, DTE Energy, Dollar Tree, Occidental Petroleum, PayPal, Pinterest, Snap, Travelers, and More

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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