Kaiser Aluminum (NASDAQ:KALU) Sets New 52-Week High - Time to Buy?

Key Points

• Kaiser Aluminum shares hit a new 52-week high, trading as high as $183 and last changing hands near $180.39, well above its 50-day and 200-day moving averages.
• The company posted a strong quarterly earnings beat, reporting $3.74 EPS versus $1.96 expected and revenue of $1.11 billion, up 42.4% year over year.
• Despite the rally, Wall Street sentiment remains mixed: the stock carries a Hold consensus rating and a $159.50 price target, while insiders have recently sold shares and the stock offers a 1.7% dividend yield.

Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $183.00 and last traded at $180.39, with a volume of 260360 shares changing hands. The stock had previously closed at $180.33.

Wall Street Analyst Weigh In

A number of brokerages have commented on KALU. UBS Group began coverage on Kaiser Aluminum in a research note on Tuesday, May 5th. They issued a "neutral" rating and a $176.00 price objective for the company. Weiss Ratings raised Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, April 24th. Zacks Research cut Kaiser Aluminum from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Wells Fargo & Company raised their price objective on Kaiser Aluminum from $125.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 15th. Finally, Wall Street Zen raised Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $159.50.

Kaiser Aluminum Stock Performance

The company has a market cap of $2.95 billion, a PE ratio of 19.65 and a beta of 1.60. 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 50-day moving average of $139.26 and a 200-day moving average of $122.66.

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

Kaiser Aluminum Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, April 24th will be given a dividend of $0.77 per share. The ex-dividend date of this dividend is Friday, April 24th. This represents a $3.08 annualized dividend and a dividend yield of 1.7%. Kaiser Aluminum's payout ratio is presently 33.55%.

Insider Activity at Kaiser Aluminum

In related news, Director Richard P. Grimley sold 1,524 shares of Kaiser Aluminum stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $171.52, for a total transaction of $261,396.48. Following the transaction, the director owned 4,578 shares of the company's stock, valued at $785,218.56. The trade was a 24.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Brett Wilcox sold 15,000 shares of Kaiser Aluminum stock in a transaction that occurred on 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 transaction, the director directly owned 9,887 shares in the company, valued at approximately $1,724,688.28. The trade was a 60.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 76,731 shares of company stock valued at $13,137,697 over the last 90 days. Corporate insiders own 1.30% of the company's stock.

Institutional Trading of Kaiser Aluminum

A number of hedge funds have recently bought and sold shares of the business. Meeder Asset Management Inc. lifted its holdings in Kaiser Aluminum by 17.9% during the first quarter. Meeder Asset Management Inc. now owns 6,954 shares of the industrial products company's stock worth $838,000 after acquiring an additional 1,057 shares during the period. Parallel Advisors LLC boosted its holdings in shares of Kaiser Aluminum by 107.2% in the 1st quarter. Parallel Advisors LLC now owns 487 shares of the industrial products company's stock worth $59,000 after buying an additional 252 shares during the last quarter. KBC Group NV purchased a new position in shares of Kaiser Aluminum in the 1st quarter worth about $44,000. Jennison Associates LLC purchased a new position in shares of Kaiser Aluminum in the 1st quarter worth about $756,000. Finally, Independent Financial Group LLC purchased a new position in shares of Kaiser Aluminum in the 1st quarter worth about $386,000. 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.