Kaiser Aluminum (NASDAQ:KALU) Shares Down 10.3% - Here's Why

Key Points

• Kaiser Aluminum shares fell 10.3% to about $166.36, near the analyst consensus price target of $168.25. Trading volume was substantially below average, with just 29,383 shares changing hands.
• Analyst opinions remain mixed: MarketBeat lists the stock at an average “Hold” rating, with price targets ranging from $142 to $183. Recent actions included upgrades from Zacks Research and higher targets from KeyCorp, JPMorgan, UBS and Wells Fargo.
• The company reported strong quarterly results, with EPS of $5.53 versus the $2.66 estimate and revenue of $1.26 billion, up 52.7% year over year. Kaiser also maintains a quarterly dividend of $0.77, or $3.08 annualized, yielding about 1.9%.

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report) traded down 10.3% on Tuesday . The stock traded as low as $165.00 and last traded at $166.3550. 29,383 shares changed hands during trading, a decline of 88% from the average daily volume of 250,405 shares. The stock had previously closed at $185.50.

Analyst Ratings Changes

A number of brokerages recently issued reports on KALU. KeyCorp boosted their price objective on Kaiser Aluminum from $170.00 to $183.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. JPMorgan Chase & Co. reissued an "underweight" rating and issued a $142.00 price target (up from $124.00) on shares of Kaiser Aluminum in a research report on Thursday, April 30th. Zacks Research upgraded shares of Kaiser Aluminum from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 29th. UBS Group raised their price objective 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. Finally, Wells Fargo & Company lifted their price objective on shares of Kaiser Aluminum from $158.00 to $169.00 and gave the company an "underweight" rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $168.25.

Kaiser Aluminum Trading Down 14.6%

The firm has a 50 day simple moving average of $174.61 and a 200 day simple moving average of $156.40. The firm has a market cap of $2.59 billion, a P/E ratio of 11.72 and a beta of 1.61. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.17 and a current ratio of 2.50.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $5.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.66 by $2.87. The firm had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.12 billion. Kaiser Aluminum had a net margin of 5.49% and a return on equity of 24.71%. The company's revenue for the quarter was up 52.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.21 earnings per share. On average, equities research analysts predict that Kaiser Aluminum Corporation will post 10.63 EPS for the current fiscal year.

Kaiser Aluminum Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 24th were paid a $0.77 dividend. The ex-dividend date was Friday, July 24th. This represents a $3.08 annualized dividend and a yield of 1.9%. Kaiser Aluminum's dividend payout ratio is currently 22.83%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Farther Finance Advisors LLC boosted its stake in Kaiser Aluminum by 389.3% during the fourth quarter. Farther Finance Advisors LLC now owns 274 shares of the industrial products company's stock valued at $31,000 after buying an additional 218 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of 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 in the last quarter. Global Retirement Partners LLC raised its holdings in shares of 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 in the last quarter. KBC Group NV bought a new stake in shares of Kaiser Aluminum during the 1st quarter valued at about $44,000. Finally, Quantbot Technologies LP bought a new stake in shares of Kaiser Aluminum during the 2nd quarter valued at about $44,000. 99.29% of the stock is currently 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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