Renaissance Technologies LLC Purchases New Stake in Alcoa $AA

Key Points

• Renaissance Technologies acquired 598,696 Alcoa shares worth approximately $39.7 million, representing about 0.23% of the company. Several other institutional investors also increased or initiated positions.
• Alcoa reported quarterly EPS of $2.12, below the $2.25 consensus estimate, while revenue of $3.97 billion was slightly below expectations. Analysts expect full-year EPS of approximately $6.55.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $61.09; Alcoa also maintains a quarterly dividend of $0.10 per share, yielding about 0.9%.

Renaissance Technologies LLC acquired a new position in shares of Alcoa (NYSE:AA - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 598,696 shares of the industrial products company's stock, valued at approximately $39,712,000. Renaissance Technologies LLC owned about 0.23% of Alcoa at the end of the most recent quarter.

A number of other large investors also recently added to or reduced their stakes in the business. Basepoint Wealth LLC acquired a new stake in shares of Alcoa during the 4th quarter worth approximately $25,000. Raleigh Capital Management Inc. lifted its holdings in Alcoa by 52,500.0% in the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock valued at $28,000 after buying an additional 525 shares during the period. CoreCap Advisors LLC lifted its holdings in Alcoa by 74.1% in the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock valued at $30,000 after buying an additional 237 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in Alcoa by 5,281.8% in the fourth 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 during the last quarter. Finally, Quarry LP boosted its stake in Alcoa by 96.0% in the fourth quarter. Quarry LP now owns 694 shares of the industrial products company's stock valued at $37,000 after acquiring an additional 340 shares during the last quarter.

Alcoa Stock Performance

Shares of AA stock opened at $44.11 on Tuesday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. Alcoa has a 52 week low of $28.11 and a 52 week high of $84.38. The company's 50 day moving average price is $59.20 and its two-hundred day moving average price is $62.00. The company has a market capitalization of $11.64 billion, a P/E ratio of 9.08, a price-to-earnings-growth ratio of 0.50 and a beta of 1.63.

Alcoa (NYSE:AA - Get Free Report) last issued 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 return on equity of 18.90% and a net margin of 9.48%.The company had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. During the same period in the prior year, the company earned $0.39 EPS. On average, analysts expect that Alcoa will post 6.55 earnings per share for the current fiscal year.

Alcoa Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were paid a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. Alcoa's dividend payout ratio (DPR) is currently 8.23%.

Analyst Upgrades and Downgrades

Several brokerages have commented on AA. Bank of America dropped their target price on shares of Alcoa from $57.00 to $51.00 and set an "underperform" rating for the company in a research report on Thursday, July 9th. Morgan Stanley reaffirmed an "equal weight" rating and set a $53.00 price objective (down from $79.00) on shares of Alcoa in a research note on Wednesday, July 8th. Zacks Research downgraded Alcoa from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 8th. Wall Street Zen lowered Alcoa from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, Wells Fargo & Company cut their target price on Alcoa from $72.00 to $71.00 and set an "overweight" rating on the stock in a research note on Friday, July 17th. Six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Alcoa has a consensus rating of "Hold" and a consensus target price of $61.09.

Alcoa 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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