Ruffer LLP Invests $14.15 Million in Alcoa $AA

Key Points

• Ruffer LLP purchased 265,910 shares of Alcoa in Q4, investing about $14.15 million and owning roughly 0.10% of the company at quarter-end.
• Alcoa missed Q1 expectations, reporting EPS of $1.40 versus $1.60 expected and revenue of $3.19 billion versus $3.35 billion consensus, with revenue down 5.2% year-over-year.
• Analyst views are mixed—several firms raised targets (e.g., Morgan Stanley to $80, Citi to $76) but the consensus rating is a Hold with a $61.73 price target; the stock trades near its 12‑month high and about 82% of shares are held by institutions.

Ruffer LLP purchased a new position in shares of Alcoa (NYSE:AA - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 265,910 shares of the industrial products company's stock, valued at approximately $14,153,000. Ruffer LLP owned 0.10% of Alcoa at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Raleigh Capital Management Inc. grew its holdings in shares of Alcoa by 52,500.0% during the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company's stock worth $28,000 after purchasing an additional 525 shares during the period. CoreCap Advisors LLC grew its holdings in shares of Alcoa by 74.1% during the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company's stock worth $30,000 after purchasing an additional 237 shares during the period. Hilltop National Bank purchased a new position in shares of Alcoa during the 4th quarter worth $40,000. True Wealth Design LLC grew its holdings in shares of Alcoa by 2,281.3% during the 4th quarter. True Wealth Design LLC now owns 762 shares of the industrial products company's stock worth $40,000 after purchasing an additional 730 shares during the period. Finally, Advisory Services Network LLC purchased a new position in shares of Alcoa during the 3rd quarter worth $27,000. 82.39% of the stock is currently owned by hedge funds and other institutional investors.

Alcoa Price Performance

AA opened at $66.99 on Wednesday. The stock's 50-day moving average price is $64.21 and its 200 day moving average price is $53.43. Alcoa has a 12-month low of $23.57 and a 12-month high of $75.70. 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 firm has a market cap of $17.68 billion, a price-to-earnings ratio of 16.96 and a beta of 1.70.

Alcoa (NYSE:AA - Get Free Report) last posted its earnings results on Thursday, April 16th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.60 by ($0.20). The firm had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a return on equity of 12.57% and a net margin of 8.27%.Alcoa's revenue was down 5.2% on a year-over-year basis. During the same period in the previous year, the company posted $2.15 EPS. As a group, sell-side analysts expect that Alcoa will post 7.57 earnings per share for the current year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Tuesday, March 10th were given a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. Alcoa's dividend payout ratio (DPR) is currently 10.13%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AA. Weiss Ratings reiterated a "hold (c)" rating on shares of Alcoa in a report on Monday, December 29th. UBS Group increased their target price on Alcoa from $48.00 to $70.00 and gave the stock a "neutral" rating in a research note on Thursday, March 12th. Morgan Stanley raised Alcoa from an "equal weight" rating to an "overweight" rating and increased their target price for the stock from $64.00 to $80.00 in a research note on Thursday, April 9th. Citigroup increased their target price on Alcoa from $54.00 to $76.00 and gave the stock a "buy" rating in a research note on Monday, March 16th. Finally, Zacks Research raised Alcoa from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $61.73.

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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