Kaiser Aluminum Corporation (NASDAQ:KALU) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Kaiser Aluminum has a consensus analyst rating of "Moderate Buy" from six brokerages, with an average 1-year price target of $159.50.
• The company reported strong quarterly results, posting EPS of $3.74 versus estimates of $1.96 and revenue of $1.11 billion, up 42.4% year over year.
• Kaiser Aluminum also declared a quarterly dividend of $0.77 per share, while insiders recently sold shares and institutions remain the dominant owners, holding 99.29% of the stock.

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report) have been assigned an average rating of "Moderate Buy" from the six brokerages that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, two have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $159.50.

A number of research firms have issued reports on KALU. Weiss Ratings raised shares of Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, April 24th. JPMorgan Chase & Co. reissued an "underweight" rating and issued a $142.00 price objective (up from $124.00) on shares of Kaiser Aluminum in a report on Thursday, April 30th. Zacks Research raised shares of Kaiser Aluminum from a "hold" rating to a "strong-buy" rating in a report on Tuesday. UBS Group began coverage on shares of Kaiser Aluminum in a report on Tuesday, May 5th. They issued a "neutral" rating and a $176.00 price objective for the company. Finally, Wall Street Zen raised shares of Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 18th.

Kaiser Aluminum Stock Performance

Shares of KALU stock opened at $169.29 on Friday. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.14 and a current ratio of 2.47. The company has a market capitalization of $2.77 billion, a price-to-earnings ratio of 18.44 and a beta of 1.60. Kaiser Aluminum has a 52 week low of $68.22 and a 52 week high of $183.00. The company has a 50-day simple moving average of $142.75 and a 200 day simple moving average of $124.85.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The industrial products company reported $3.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.96 by $1.78. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $948.50 million. Kaiser Aluminum had a net margin of 4.14% and a return on equity of 17.00%. The business's revenue for the quarter was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.44 EPS. On average, sell-side analysts predict that Kaiser Aluminum will post 8.69 earnings per share for the current year.

Kaiser Aluminum Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, April 24th were given a dividend of $0.77 per share. The ex-dividend date was Friday, April 24th. This represents a $3.08 annualized dividend and a dividend yield of 1.8%. Kaiser Aluminum's dividend payout ratio (DPR) is currently 33.55%.

Insiders Place Their Bets

In other Kaiser Aluminum news, Director Richard P. Grimley sold 1,524 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $171.52, for a total transaction of $261,396.48. Following the completion of the transaction, the director directly owned 4,578 shares in the company, valued at $785,218.56. The trade was a 24.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Iulian Gheorghe sold 175 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $174.22, for a total transaction of $30,488.50. Following the transaction, the senior vice president owned 4,448 shares of the company's stock, valued at approximately $774,930.56. This represents a 3.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 76,731 shares of company stock valued at $13,137,697 over the last three months. 1.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in KALU. First Horizon Corp acquired a new position in Kaiser Aluminum during the third quarter valued at approximately $27,000. Hantz Financial Services Inc. raised its position in Kaiser Aluminum by 340.0% during the third quarter. Hantz Financial Services Inc. now owns 374 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 289 shares in the last quarter. Farther Finance Advisors LLC raised its position in Kaiser Aluminum by 389.3% during the fourth quarter. Farther Finance Advisors LLC now owns 274 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 218 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in Kaiser Aluminum by 475.0% during the second quarter. EverSource Wealth Advisors LLC now owns 414 shares of the industrial products company's stock valued at $33,000 after purchasing an additional 342 shares in the last quarter. Finally, Global Retirement Partners LLC raised its position in Kaiser Aluminum by 408.3% during the fourth quarter. Global Retirement Partners LLC now owns 366 shares of the industrial products company's stock valued at $42,000 after purchasing an additional 294 shares in the last quarter. 99.29% of the stock is currently owned by institutional investors and hedge funds.

About Kaiser Aluminum

Kaiser Aluminum Corporation is a U.S.-based producer of semi‐fabricated aluminum products, serving a diverse range of industrial and specialty markets. The company's offerings include extruded, rolled, and forged aluminum products designed to meet stringent performance requirements in sectors such as aerospace, automotive, defense, electronics, and general engineering. By focusing on high‐value applications, Kaiser Aluminum aims to deliver lightweight, durable solutions that contribute to efficiency and innovation across its customer base.

Operationally, Kaiser Aluminum maintains a network of smelters, extrusion plants, and rolling mills located primarily in North America.

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