L1 Capital Pty Ltd Acquires New Position in Alcoa $AA

Key Points

• L1 Capital Pty Ltd has acquired 1,727,044 shares of Alcoa ($AA), valued at approximately $52.7 million, now making up about 4.9% of its investment portfolio.
• Alcoa's recent quarterly earnings exceeded expectations, reporting an EPS of $0.39 compared to a consensus estimate of $0.29.
• The company also announced a quarterly dividend of $0.10 per share, reflecting an annualized yield of 1.2%.

L1 Capital Pty Ltd acquired a new stake in shares of Alcoa (NYSE:AA - Free Report) in the 1st quarter, according to its most recent 13F filing with the SEC. The fund acquired 1,727,044 shares of the industrial products company's stock, valued at approximately $52,675,000. Alcoa accounts for 4.9% of L1 Capital Pty Ltd's portfolio, making the stock its 9th largest holding. L1 Capital Pty Ltd owned approximately 0.67% of Alcoa at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. First Trust Advisors LP lifted its stake in shares of Alcoa by 2.3% in the 4th quarter. First Trust Advisors LP now owns 70,876 shares of the industrial products company's stock valued at $2,678,000 after purchasing an additional 1,593 shares during the period. Stifel Financial Corp lifted its stake in shares of Alcoa by 2.1% in the 4th quarter. Stifel Financial Corp now owns 60,415 shares of the industrial products company's stock valued at $2,282,000 after purchasing an additional 1,244 shares during the period. Northern Trust Corp lifted its stake in shares of Alcoa by 46.8% in the 4th quarter. Northern Trust Corp now owns 2,549,608 shares of the industrial products company's stock valued at $96,324,000 after purchasing an additional 813,214 shares during the period. Freestone Grove Partners LP acquired a new position in shares of Alcoa in the 4th quarter valued at $281,000. Finally, Mercer Global Advisors Inc. ADV acquired a new position in shares of Alcoa in the 4th quarter valued at $720,000.

Alcoa Price Performance

Shares of Alcoa stock traded up $0.53 during trading hours on Friday, reaching $31.82. 5,685,262 shares of the company's stock were exchanged, compared to its average volume of 5,052,331. Alcoa has a 1 year low of $21.53 and a 1 year high of $47.77. The company has a market capitalization of $8.24 billion, a P/E ratio of 8.31, a price-to-earnings-growth ratio of 0.18 and a beta of 2.26. The business has a fifty day moving average of $30.64 and a two-hundred day moving average of $29.46. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.41.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.10. Alcoa had a net margin of 7.86% and a return on equity of 19.18%. The business had revenue of $3.02 billion during the quarter, compared to analyst estimates of $2.96 billion. During the same quarter in the prior year, the firm earned $0.16 earnings per share. The company's revenue for the quarter was up 3.9% compared to the same quarter last year. As a group, research analysts predict that Alcoa will post 4.43 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Tuesday, August 12th were issued a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.3%. Alcoa's dividend payout ratio is currently 10.44%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on AA. UBS Group reiterated a "neutral" rating and issued a $31.00 target price on shares of Alcoa in a research note on Thursday, May 15th. JPMorgan Chase & Co. decreased their target price on shares of Alcoa from $28.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, July 17th. Bank of America boosted their target price on shares of Alcoa from $26.00 to $27.00 and gave the company an "underperform" rating in a research note on Thursday, July 17th. Wall Street Zen cut shares of Alcoa from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Finally, B. Riley decreased their target price on shares of Alcoa from $38.00 to $37.00 and set a "buy" rating for the company in a research note on Tuesday, July 15th. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $41.67.

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.