Kaiser Aluminum (NASDAQ:KALU) Shares Up 10.2% Following Strong Earnings

Key Points

• Kaiser Aluminum shares jumped 10.2% after the company reported stronger-than-expected quarterly results, with EPS of $5.53 versus the $2.66 consensus estimate and revenue of $1.26 billion versus $1.12 billion expected.
• The company posted 52.7% year-over-year revenue growth, along with a net margin of 4.14% and return on equity of 17.00%, signaling a strong quarter operationally.
• Kaiser Aluminum also announced a quarterly dividend of $0.77 per share, payable on August 14, which annualizes to $3.08 per share for a 1.7% yield.

Kaiser Aluminum Corporation (NASDAQ:KALU - Get Free Report)'s stock price was up 10.2% on Thursday following a stronger than expected earnings report. The company traded as high as $178.87 and last traded at $181.0220. Approximately 41,783 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 247,725 shares. The stock had previously closed at $164.32.

The industrial products company reported $5.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.66 by $2.87. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.12 billion. Kaiser Aluminum had a net margin of 4.14% and a return on equity of 17.00%. Kaiser Aluminum's revenue was up 52.7% compared to the same quarter last year. During the same period last year, the business posted $1.21 EPS.

Kaiser Aluminum Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 24th will be given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, July 24th. Kaiser Aluminum's payout ratio is currently 33.55%.

Analyst Ratings Changes

A number of research analysts have recently commented on KALU shares. KeyCorp upped their price target on Kaiser Aluminum from $170.00 to $183.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Wells Fargo & Company restated 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 raised shares of Kaiser Aluminum from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, April 24th. JPMorgan Chase & Co. reissued an "underweight" rating and set a $142.00 target price (up from $124.00) on shares of Kaiser Aluminum in a research report on Thursday, April 30th. Finally, Wall Street Zen raised Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 18th. Two 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. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $165.50.

Insider Buying and Selling at Kaiser Aluminum

In related news, Director Richard P. Grimley sold 1,524 shares of the stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $171.52, for a total value of $261,396.48. Following the completion of the transaction, the director owned 4,578 shares of the company's stock, valued at $785,218.56. This represents a 24.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Neal E. West sold 5,000 shares of Kaiser Aluminum stock in a transaction that occurred on Tuesday, April 28th. The shares were 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 $3,308,279.39. The trade was a 20.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 71,731 shares of company stock worth $12,529,097 in the last 90 days. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in KALU. Farther Finance Advisors LLC increased its position in shares of Kaiser Aluminum by 389.3% during the 4th quarter. Farther Finance Advisors LLC now owns 274 shares of the industrial products company's stock worth $31,000 after purchasing an additional 218 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Kaiser Aluminum by 475.0% during the second quarter. EverSource Wealth Advisors LLC now owns 414 shares of the industrial products company's stock worth $33,000 after buying an additional 342 shares during the last quarter. Global Retirement Partners LLC increased its holdings in shares of Kaiser Aluminum by 408.3% during the fourth quarter. Global Retirement Partners LLC now owns 366 shares of the industrial products company's stock worth $42,000 after buying an additional 294 shares in the last quarter. KBC Group NV bought a new position in shares of Kaiser Aluminum in the first quarter valued at approximately $44,000. Finally, Quantbot Technologies LP acquired a new position in shares of Kaiser Aluminum in the 2nd quarter worth approximately $44,000. 99.29% of the stock is owned by institutional investors.

Kaiser Aluminum Stock Performance

The stock has a 50-day moving average of $176.12 and a 200 day moving average of $150.31. The firm has a market capitalization of $2.96 billion, a P/E ratio of 19.72 and a beta of 1.59. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.14 and a current ratio of 2.47.

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.

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