Kaiser Aluminum (NASDAQ:KALU) Receives "Underweight" Rating from Wells Fargo & Company

Key Points

• Wells Fargo reaffirmed its underweight rating on Kaiser Aluminum and kept a $158 price target, implying about 6.45% downside from the current share price.
• Analyst sentiment is mixed overall: the stock has an average Hold rating with a consensus price target of $165.50, while recent calls ranged from bearish to bullish across several firms.
• Kaiser Aluminum recently reported better-than-expected earnings, with quarterly EPS of $3.74 versus estimates of $1.96 and revenue of $1.11 billion, up 42.4% year over year.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report)'s stock had its "underweight" rating reaffirmed by research analysts at Wells Fargo & Company in a research note issued on Thursday,Benzinga reports. They presently have a $158.00 target price on the industrial products company's stock. Wells Fargo & Company's price objective points to a potential downside of 6.45% from the stock's current price.

Several other equities analysts have also weighed in on the company. Zacks Research lowered Kaiser Aluminum from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. 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. Wall Street Zen upgraded Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 18th. Weiss Ratings raised Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, April 24th. Finally, KeyCorp increased their target price on Kaiser Aluminum from $170.00 to $183.00 and gave the company an "overweight" rating in a research report on Friday, April 24th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $165.50.

Kaiser Aluminum Stock Performance

KALU opened at $168.89 on Thursday. The stock has a market cap of $2.76 billion, a P/E ratio of 18.40 and a beta of 1.59. The company has a debt-to-equity ratio of 1.28, a current ratio of 2.47 and a quick ratio of 1.14. The firm has a fifty day moving average price of $179.24 and a 200 day moving average price of $147.18. Kaiser Aluminum has a 1 year low of $71.44 and a 1 year high of $195.96.

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

Insider Transactions at Kaiser Aluminum

In other Kaiser Aluminum news, CEO Keith Harvey sold 47,001 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $175.09, for a total transaction 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 $17,043,085.51. This represents a 32.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Iulian Gheorghe sold 175 shares of the firm'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 value of $30,488.50. Following the completion of the transaction, the senior vice president owned 4,448 shares in the company, valued at approximately $774,930.56. This trade represents a 3.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 71,731 shares of company stock worth $12,529,097 in the last three months. 1.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC grew its holdings in shares of Kaiser Aluminum by 389.3% during the fourth quarter. Farther Finance Advisors LLC now owns 274 shares of the industrial products company's stock worth $31,000 after buying an additional 218 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in Kaiser Aluminum by 475.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 414 shares of the industrial products company's stock valued at $33,000 after acquiring an additional 342 shares during the last quarter. Global Retirement Partners LLC raised its holdings in Kaiser Aluminum by 408.3% in the 4th quarter. Global Retirement Partners LLC now owns 366 shares of the industrial products company's stock valued at $42,000 after acquiring an additional 294 shares during the last quarter. KBC Group NV acquired a new stake in Kaiser Aluminum in the 1st quarter valued at about $44,000. Finally, Quantbot Technologies LP purchased a new position in Kaiser Aluminum in the 2nd quarter worth approximately $44,000. Hedge funds and other institutional investors own 99.29% of the company's stock.

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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