Kaiser Aluminum (NASDAQ:KALU) Releases Earnings Results, Beats Expectations By $2.87 EPS

Key Points

• Kaiser Aluminum reported quarterly EPS of $5.53, beating the consensus estimate of $2.66 by $2.87. Revenue also came in above expectations at $1.26 billion versus the $1.12 billion estimate.
• The company said it will pay a quarterly dividend of $0.77 per share on August 14 to shareholders of record on July 24. That works out to an annualized dividend of $3.08 and a yield of about 1.9%.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and an average price target of $165.50. Recent insider sales also drew attention, including moves by the CFO and SVP, while institutional ownership remains very high at 99.29%.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) posted its quarterly earnings data on Wednesday. The industrial products company reported $5.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.66 by $2.87, FiscalAI reports. Kaiser Aluminum had a net margin of 4.14% and a return on equity of 17.00%. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.12 billion.

Kaiser Aluminum Stock Performance

Shares of NASDAQ:KALU traded down $0.05 on Wednesday, hitting $164.32. 243,866 shares of the company were exchanged, compared to its average volume of 249,386. The company's 50 day moving average price is $176.42 and its two-hundred day moving average price is $149.96. Kaiser Aluminum has a one year low of $71.44 and a one year high of $195.96. 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 firm has a market capitalization of $2.68 billion, a price-to-earnings ratio of 17.90 and a beta of 1.59.

Kaiser Aluminum Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 24th will be given a $0.77 dividend. This represents a $3.08 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, July 24th. Kaiser Aluminum's dividend payout ratio (DPR) is currently 33.55%.

Analysts Set New Price Targets

KALU has been the topic of several recent analyst reports. UBS Group lifted their target price on shares of Kaiser Aluminum from $176.00 to $179.00 and gave the stock a "neutral" rating in a report on Wednesday, July 8th. Wells Fargo & Company reaffirmed an "underweight" rating and issued a $158.00 price target on shares of Kaiser Aluminum in a research report on Thursday, July 9th. Weiss Ratings upgraded Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, April 24th. KeyCorp boosted their price objective on Kaiser Aluminum from $170.00 to $183.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Finally, Wall Street Zen upgraded Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $165.50.

Insider Buying and Selling at Kaiser Aluminum

In related news, SVP Iulian Gheorghe sold 175 shares of the stock in a transaction dated 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 sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Neal E. West sold 5,000 shares of Kaiser Aluminum stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $173.29, for a total value of $866,450.00. Following the sale, the chief financial officer directly owned 19,091 shares in the company, valued at approximately $3,308,279.39. This trade represents a 20.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 71,731 shares of company stock valued at $12,529,097 in the last three months. Company insiders own 1.30% of the company's stock.

Institutional Trading of Kaiser Aluminum

A number of institutional investors and hedge funds have recently modified their holdings of KALU. Invesco Ltd. raised its stake in shares of Kaiser Aluminum by 20.7% in the fourth quarter. Invesco Ltd. now owns 151,511 shares of the industrial products company's stock valued at $17,403,000 after purchasing an additional 25,969 shares in the last quarter. Summit Global Investments boosted its stake in Kaiser Aluminum by 148.3% during the fourth quarter. Summit Global Investments now owns 13,274 shares of the industrial products company's stock worth $1,525,000 after buying an additional 7,927 shares in the last quarter. First Citizens Bank & Trust Co. boosted its stake in Kaiser Aluminum by 81.8% during the fourth quarter. First Citizens Bank & Trust Co. now owns 5,215 shares of the industrial products company's stock worth $599,000 after buying an additional 2,347 shares in the last quarter. State of Tennessee Department of Treasury increased its holdings in Kaiser Aluminum by 52.4% in the 4th quarter. State of Tennessee Department of Treasury now owns 11,747 shares of the industrial products company's stock valued at $1,440,000 after buying an additional 4,039 shares during the period. Finally, Mackenzie Financial Corp bought a new stake in Kaiser Aluminum in the 4th quarter valued at $2,028,000. 99.29% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.