Kaiser Aluminum (NASDAQ:KALU) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on Kaiser Aluminum to $169 from $158, while keeping an underweight rating on the stock.
• Kaiser Aluminum’s latest earnings beat expectations sharply, with $5.53 EPS versus the $2.66 consensus and revenue of $1.26 billion, up 52.7% year over year.
• Despite mixed analyst views, the stock has seen notable insider selling and heavy institutional ownership, with hedge funds and other institutions holding 99.29% of shares outstanding.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) had its price target boosted by analysts at Wells Fargo & Company from $158.00 to $169.00 in a report issued on Friday,Benzinga reports. The firm presently has an "underweight" rating on the industrial products company's stock. Wells Fargo & Company's price target would indicate a potential downside of 0.15% from the stock's previous close.

Other analysts have also issued research reports about the stock. Weiss Ratings restated a "buy (b-)" rating on shares of Kaiser Aluminum in a research report on Tuesday. JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $142.00 price objective (up from $124.00) on shares of Kaiser Aluminum in a research report on Thursday, April 30th. KeyCorp increased their target price on shares of Kaiser Aluminum from $170.00 to $183.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Wall Street Zen upgraded Kaiser Aluminum from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 18th. Finally, Zacks Research lowered Kaiser Aluminum from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Kaiser Aluminum has a consensus rating of "Hold" and a consensus price target of $168.25.

Kaiser Aluminum Stock Performance

Shares of NASDAQ KALU traded down $11.34 during midday trading on Friday, reaching $169.26. 104,756 shares of the stock were exchanged, compared to its average volume of 250,086. The firm has a market cap of $2.77 billion, a price-to-earnings ratio of 12.55 and a beta of 1.59. Kaiser Aluminum has a twelve month low of $71.44 and a twelve month high of $195.96. The firm has a 50-day simple moving average of $176.18 and a two-hundred day simple moving average of $150.73. The company has a quick ratio of 1.14, a current ratio of 2.47 and a debt-to-equity ratio of 1.28.

Kaiser Aluminum (NASDAQ:KALU - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The industrial products company reported $5.53 earnings per share for the quarter, beating the consensus estimate of $2.66 by $2.87. Kaiser Aluminum had a net margin of 5.49% and a return on equity of 25.50%. The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.12 billion. During the same period in the previous year, the firm earned $1.21 EPS. The business's quarterly revenue was up 52.7% on a year-over-year basis. As a group, analysts anticipate that Kaiser Aluminum will post 9.11 EPS for the current fiscal year.

Insider Activity at Kaiser Aluminum

In other news, Director Brett Wilcox sold 15,000 shares of Kaiser Aluminum stock in a transaction dated 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 sale, the director owned 9,887 shares in the company, valued at $1,724,688.28. This trade represents a 60.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard P. Grimley sold 1,524 shares of Kaiser Aluminum stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $171.52, for a total transaction of $261,396.48. Following the completion of the sale, the director owned 4,578 shares in the company, valued at approximately $785,218.56. This trade represents a 24.98% 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 valued at $12,529,097 in the last three months. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of KALU. State Street Corp lifted its position in shares of Kaiser Aluminum by 31.9% in the second quarter. State Street Corp now owns 1,154,415 shares of the industrial products company's stock valued at $92,238,000 after acquiring an additional 279,231 shares in the last quarter. Hotchkis & Wiley Capital Management LLC purchased a new stake in shares of Kaiser Aluminum during the third quarter worth approximately $13,111,000. Brightline Capital Management LLC purchased a new stake in shares of Kaiser Aluminum during the fourth quarter worth approximately $19,296,000. Goldman Sachs Group Inc. raised its stake in Kaiser Aluminum by 111.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 179,781 shares of the industrial products company's stock valued at $20,650,000 after purchasing an additional 94,874 shares during the last quarter. Finally, Raymond James Financial Inc. boosted its stake in Kaiser Aluminum by 211.2% during the 2nd quarter. Raymond James Financial Inc. now owns 82,553 shares of the industrial products company's stock worth $6,596,000 after purchasing an additional 56,028 shares during the last quarter. 99.29% of the stock is owned by hedge funds and other 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.

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