Kaiser Aluminum (NASDAQ:KALU) Hits New 12-Month High - Here's Why

Key Points

• Kaiser Aluminum shares hit a new 52-week high, trading as high as $183 and closing near $181.83, reflecting strong recent momentum in the stock.
• Recent earnings beat expectations by a wide margin, with quarterly EPS of $3.74 versus the $1.96 consensus and revenue of $1.11 billion, up 42.4% year over year.
• Analyst views are mixed but broadly positive, with a consensus rating of “Moderate Buy” and a consensus target price of $159.50, even as some firms raised targets and others kept cautious ratings.

Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report) shares hit a new 52-week high on Tuesday . The stock traded as high as $183.00 and last traded at $181.83, with a volume of 22726 shares trading hands. The stock had previously closed at $175.47.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on KALU. JPMorgan Chase & Co. restated an "underweight" rating and set a $142.00 price objective (up from $124.00) on shares of Kaiser Aluminum in a report on Thursday, April 30th. Zacks Research upgraded shares of Kaiser Aluminum from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. KeyCorp increased their target price on Kaiser Aluminum from $170.00 to $183.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. UBS Group initiated coverage on Kaiser Aluminum in a report on Tuesday, May 5th. They issued a "neutral" rating and a $176.00 price objective on the stock. Finally, Wall Street Zen upgraded Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 18th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $159.50.

Kaiser Aluminum Stock Performance

The stock has a 50 day simple moving average of $148.21 and a 200 day simple moving average of $128.37. The company has a quick ratio of 1.14, a current ratio of 2.47 and a debt-to-equity ratio of 1.28. The company has a market cap of $3.01 billion, a price-to-earnings ratio of 20.10 and a beta of 1.60.

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

Kaiser Aluminum Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, April 24th were paid 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 1.7%. Kaiser Aluminum's dividend payout ratio (DPR) is currently 33.55%.

Insiders Place Their Bets

In other news, Director Brett Wilcox sold 15,000 shares of the company's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $174.44, for a total value of $2,616,600.00. Following the sale, the director owned 9,887 shares in the company, valued at approximately $1,724,688.28. This represents a 60.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Richard P. Grimley sold 1,524 shares of the company'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 value of $261,396.48. Following the sale, the director owned 4,578 shares in the company, valued at $785,218.56. The trade was a 24.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 71,731 shares of company stock valued at $12,529,097. Insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On Kaiser Aluminum

Several institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC bought a new stake in Kaiser Aluminum during the fourth quarter valued at $5,018,000. Citigroup Inc. lifted its position in shares of Kaiser Aluminum by 127.3% in the 3rd quarter. Citigroup Inc. now owns 34,456 shares of the industrial products company's stock worth $2,659,000 after buying an additional 19,294 shares during the last quarter. First National Bank of Omaha acquired a new position in shares of Kaiser Aluminum in the 3rd quarter valued at about $603,000. AlphaQuest LLC grew its position in shares of Kaiser Aluminum by 1,096.2% during the 3rd quarter. AlphaQuest LLC now owns 22,453 shares of the industrial products company's stock valued at $1,732,000 after buying an additional 20,576 shares during the last quarter. Finally, Bright Futures Wealth Management LLC. bought a new stake in shares of Kaiser Aluminum during the 3rd quarter valued at about $908,000. 99.29% of the stock is owned by institutional investors and hedge funds.

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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