Alcoa (NYSE:AA) Shares Climb 6.7% After Better-Than-Expected Earnings

Key Points

• Alcoa shares jumped 6.7% after the company reported quarterly adjusted earnings of $1.82 per share, beating the $1.51 consensus estimate. Revenue increased 23.7% year over year to $3.70 billion but fell slightly short of expectations.
• Profitability benefited from higher aluminum prices, increased production and operational improvements, with free cash flow reportedly reaching $472 million. Management also said tight global aluminum inventories could support prices, though analysts cited margin and cost pressures.
• Alcoa declared a quarterly dividend of $0.10 per share, equal to a $0.40 annualized payout and roughly a 0.9% yield. Analyst sentiment remains mixed but leans positive, with a “Moderate Buy” consensus and an average price target of $60.54.

Alcoa (NYSE:AA - Get Free Report)'s share price shot up 6.7% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $43.01 and last traded at $43.1180. Approximately 1,880,886 shares traded hands during trading, a decline of 68% from the average session volume of 5,820,517 shares. The stock had previously closed at $40.42.

The industrial products company reported $1.82 EPS for the quarter, beating analysts' consensus estimates of $1.51 by $0.31. The business had revenue of $3.70 billion during the quarter, compared to analysts' expectations of $3.77 billion. Alcoa had a return on equity of 18.90% and a net margin of 9.48%. The business's revenue was up 23.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.88 earnings per share.

Alcoa Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, October 27th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Tuesday, October 27th. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. Alcoa's dividend payout ratio (DPR) is currently 8.23%.

Alcoa News Summary

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa reported third-quarter adjusted earnings of $1.82 per share, above the roughly $1.51–$1.54 analyst consensus. Net income more than doubled year over year to $483 million from $232 million, while revenue rose 23.7% to $3.70 billion. Alcoa Corporation Reports Third Quarter 2026 Results
• Positive Sentiment: Higher aluminum prices, increased production and operational improvements supported profitability. Free cash flow reportedly reached $472 million, strengthening the company’s financial flexibility. Alcoa Q3 2026 Earnings
• Positive Sentiment: Management said global aluminum inventories are tight, leaving limited capacity to absorb another supply disruption. That outlook could support aluminum prices and Alcoa’s future earnings. Aluminum Supply Warning
• Positive Sentiment: The planned Massena East sale could help Alcoa advance its $1 billion asset-monetization goal and provide additional cash. Barclays also initiated coverage with an Overweight rating and a $55 price target. Alcoa Massena East and Alumina Market Article
• Neutral Sentiment: Alcoa declared a quarterly dividend of $0.10 per share, payable November 13 to shareholders of record October 27. The dividend provides income support but represents an approximately 1% annual yield. Alcoa Declares Quarterly Cash Dividend
• Negative Sentiment: Quarterly revenue of $3.70 billion fell short of estimates near $3.77–$3.78 billion. Bank of America reiterated a Sell rating and cut its price target to $48, citing margin pressure, cost headwinds and weak deal economics. Alcoa Sell Rating and Price Target Cut

Wall Street Analyst Weigh In

Several research firms have issued reports on AA. JPMorgan Chase & Co. decreased their price objective on shares of Alcoa from $52.00 to $50.00 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. Wells Fargo & Company reissued an "overweight" rating on shares of Alcoa in a research note on Friday. Zacks Research upgraded shares of Alcoa from a "strong sell" rating to a "hold" rating in a research report on Monday, September 14th. Barclays assumed coverage on shares of Alcoa in a research report on Wednesday. They set an "overweight" rating and a $55.00 price target for the company. Finally, Argus decreased their price target on shares of Alcoa from $73.00 to $55.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Eight research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $60.54.

Insider Buying and Selling at Alcoa

In other news, EVP Tammi A. Jones sold 15,628 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $50.60, for a total value of $790,776.80. Following the completion of the sale, the executive vice president directly owned 39,819 shares in the company, valued at $2,014,841.40. This represents a 28.19% 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, EVP Renato Bacchi sold 700 shares of the firm's stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $51.02, for a total transaction of $35,714.00. Following the completion of the transaction, the executive vice president directly owned 74,930 shares in the company, valued at approximately $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Assenagon Asset Management S.A. grew its holdings in shares of Alcoa by 1,498.8% in the third quarter. Assenagon Asset Management S.A. now owns 717,838 shares of the industrial products company's stock valued at $30,149,000 after purchasing an additional 672,939 shares during the period. GAMMA Investing LLC raised its position in Alcoa by 10.4% in the third quarter. GAMMA Investing LLC now owns 6,852 shares of the industrial products company's stock valued at $288,000 after purchasing an additional 646 shares during the period. YHB Investment Advisors Inc. lifted its stake in Alcoa by 3.2% during the third quarter. YHB Investment Advisors Inc. now owns 9,569 shares of the industrial products company's stock worth $402,000 after purchasing an additional 301 shares in the last quarter. Ausbil Investment Management Ltd acquired a new position in Alcoa during the third quarter worth $588,000. Finally, Envestnet Portfolio Solutions Inc. lifted its stake in Alcoa by 4.6% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,373 shares of the industrial products company's stock worth $332,000 after purchasing an additional 282 shares in the last quarter. 82.39% of the stock is currently owned by institutional investors and hedge funds.

Alcoa Stock Performance

The firm has a 50-day moving average price of $47.10 and a 200 day moving average price of $56.14. The firm has a market capitalization of $11.48 billion, a PE ratio of 8.95, a price-to-earnings-growth ratio of 0.49 and a beta of 1.74. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30.

About Alcoa

Alcoa Corporation NYSE: AA is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.

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