Kaiser Aluminum Corporation (NASDAQ:KALU) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Wall Street sentiment is mixed but cautious: Kaiser Aluminum has a consensus rating of “Hold” from six analysts, with one sell, three holds, and two buys. The average 12-month price target is $159.50.
• Recent earnings beat expectations by a wide margin: The company reported $3.74 EPS versus estimates of $1.96, and revenue of $1.11 billion also topped forecasts. Revenue jumped 42.4% year over year.
• Insiders have been selling shares: CEO Keith Harvey and Director Richard P. Grimley both sold stock recently, and insiders sold a total of 71,731 shares worth about $12.5 million in the last quarter.

Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report) has received an average recommendation of "Hold" from the six research firms that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $159.50.

Several analysts have recently issued reports on KALU shares. Wells Fargo & Company upped their price objective on Kaiser Aluminum from $125.00 to $137.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 15th. UBS Group initiated coverage on shares of Kaiser Aluminum in a research report on Tuesday, May 5th. They issued a "neutral" rating and a $176.00 price target on the stock. Weiss Ratings raised shares of Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, April 24th. KeyCorp increased their price objective on shares of Kaiser Aluminum from $170.00 to $183.00 and gave the company an "overweight" rating in a research report on Friday, April 24th. Finally, 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 research note on Thursday, April 30th.

Kaiser Aluminum Stock Performance

Shares of KALU stock opened at $176.27 on Friday. Kaiser Aluminum has a 12-month low of $71.44 and a 12-month high of $195.96. The company has a current ratio of 2.47, a quick ratio of 1.14 and a debt-to-equity ratio of 1.28. The stock's 50-day moving average price is $179.22 and its 200-day moving average price is $145.63. The stock has a market capitalization of $2.88 billion, a price-to-earnings ratio of 19.20 and a beta of 1.59.

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

Kaiser Aluminum Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, April 24th were issued a $0.77 dividend. The ex-dividend date of this dividend was Friday, April 24th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 1.7%. Kaiser Aluminum's dividend payout ratio (DPR) is presently 33.55%.

Insider Buying and Selling

In other news, Director Richard P. Grimley sold 1,524 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $171.52, for a total value of $261,396.48. Following the completion of the sale, the director directly owned 4,578 shares of the company's stock, valued at $785,218.56. This trade represents a 24.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Keith Harvey sold 47,001 shares of Kaiser Aluminum stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $175.09, for a total value of $8,229,405.09. Following the completion of the transaction, the chief executive officer owned 97,339 shares of the company's stock, valued at approximately $17,043,085.51. This trade represents a 32.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 71,731 shares of company stock valued at $12,529,097 in the last quarter. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Allspring Global Investments Holdings LLC bought a new stake in Kaiser Aluminum in the fourth quarter worth about $5,018,000. Citigroup Inc. grew its stake in shares of Kaiser Aluminum by 127.3% during the third quarter. Citigroup Inc. now owns 34,456 shares of the industrial products company's stock valued at $2,659,000 after buying an additional 19,294 shares during the last quarter. Hillsdale Investment Management Inc. bought a new position in shares of Kaiser Aluminum during the fourth quarter valued at approximately $5,410,000. American Century Companies Inc. raised its holdings in shares of Kaiser Aluminum by 9.8% in the third quarter. American Century Companies Inc. now owns 588,720 shares of the industrial products company's stock worth $45,426,000 after buying an additional 52,512 shares during the period. Finally, JPMorgan Chase & Co. raised its holdings in shares of Kaiser Aluminum by 24.2% in the third quarter. JPMorgan Chase & Co. now owns 79,701 shares of the industrial products company's stock worth $6,150,000 after buying an additional 15,528 shares during the period. 99.29% of the stock is owned by hedge funds and other institutional investors.

Kaiser Aluminum Company Profile

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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