JPMorgan Chase & Co. Has Lowered Expectations for Alcoa (NYSE:AA) Stock Price

Key Points

• JPMorgan cut its price target on Alcoa from $70 to $55 and kept a neutral rating, implying about 13.5% upside from the prior close.
• Analyst sentiment on Alcoa is mixed but cautious: the stock now has a Hold consensus rating, with an average price target of $64.91 across analysts.
• Alcoa recently missed quarterly expectations, reporting $1.40 EPS versus $1.60 expected, and revenue of $3.19 billion versus $3.35 billion expected, adding to pressure on the stock.

Alcoa (NYSE:AA - Get Free Report) had its target price decreased by analysts at JPMorgan Chase & Co. from $70.00 to $55.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the industrial products company's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 13.48% from the company's previous close.

Other equities research analysts also recently issued reports about the stock. Citigroup raised their target price on shares of Alcoa from $54.00 to $76.00 and gave the company a "buy" rating in a research note on Monday, March 16th. Zacks Research downgraded Alcoa from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 12th. UBS Group decreased their price objective on Alcoa from $80.00 to $68.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Royal Bank Of Canada set a $70.00 price objective on Alcoa in a research report on Wednesday, July 1st. Finally, Morgan Stanley reiterated an "equal weight" rating and issued a $53.00 price target (down from $79.00) on shares of Alcoa in a research note on Wednesday. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $64.91.

Alcoa Stock Performance

Shares of Alcoa stock opened at $48.47 on Thursday. The company has a market capitalization of $12.79 billion, a PE ratio of 12.27, a P/E/G ratio of 0.67 and a beta of 1.63. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48. The company has a 50-day simple moving average of $63.84 and a two-hundred day simple moving average of $62.80. Alcoa has a one year low of $28.11 and a one year high of $84.38.

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

Hedge Funds Weigh In On Alcoa

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nordea Investment Management AB increased its holdings in Alcoa by 187.7% in the 4th quarter. Nordea Investment Management AB now owns 408,624 shares of the industrial products company's stock worth $21,902,000 after buying an additional 266,574 shares during the period. Lighthouse Investment Partners LLC acquired a new stake in Alcoa during the 3rd quarter valued at approximately $5,606,000. Moran Wealth Management LLC acquired a new stake in Alcoa during the 4th quarter valued at approximately $2,631,000. Merit Financial Group LLC boosted its holdings in shares of Alcoa by 114.2% in the 4th quarter. Merit Financial Group LLC now owns 28,945 shares of the industrial products company's stock valued at $1,538,000 after acquiring an additional 15,432 shares during the last quarter. Finally, Alphadyne Asset Management LP purchased a new stake in shares of Alcoa in the 3rd quarter valued at $2,467,000.

Key Headlines Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa is showing up on an oversold-stock screen, with RSI near or below 30, which may attract traders looking for a bounce. Top 3 Materials Stocks That Could Lead To Your Biggest Gains In Q3
• Neutral Sentiment: Alcoa is expected to report earnings soon, keeping investors focused on whether results will confirm or challenge the bearish analyst outlook. Alcoa (AA) Expected to Post Earnings on Thursday
• Negative Sentiment: Zacks added Alcoa to its Rank #5 Strong Sell list, reinforcing bearish sentiment ahead of earnings. New Strong Sell Stocks for July 9th
• Negative Sentiment: Morgan Stanley cut Alcoa to Equal Weight and lowered its price target to $53 from $79, citing a weaker aluminum supply-demand outlook. Morgan Stanley upgrades Ivanhoe Mines, cuts Alcoa and Vale on metals outlook
• Negative Sentiment: B. Riley also lowered its price target on Alcoa to $80, adding to the string of analyst caution around the stock. Alcoa NYSE: AA Price Target Lowered to $80.00 at B. Riley Financial

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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