According to Zacks, “Alcoa’s revenues and adjusted earnings for third-quarter 2016 missed the respective Zacks Consensus Estimate. Lower alumina prices dragged down its sales in the quarter. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Recent major contract wins (including Embraer and Boeing deals) in aerospace are also expected to support its results. However, weak metals pricing may continue to hurt Alcoa’s revenues. The company's downstream business is also seeing sustained pricing pressure. Moreover, Alcoa is exposed to weakness in the heavy duty truck and trailer market in North America and building and construction market in Europe.”
Several other research analysts have also issued reports on AA. Bank of America Corp. reissued a buy rating and set a $33.00 target price on shares of Alcoa in a research note on Wednesday. Morgan Stanley reaffirmed an overweight rating and issued a $12.00 price objective on shares of Alcoa in a research note on Wednesday, October 5th. Seaport Global Securities assumed coverage on shares of Alcoa in a research note on Friday, September 9th. They issued a neutral rating and a $11.00 price objective on the stock. Rosenblatt Securities reaffirmed a buy rating and issued a $15.00 price objective on shares of Alcoa in a research note on Friday, July 15th. Finally, Credit Suisse Group AG reaffirmed a buy rating on shares of Alcoa in a research note on Tuesday, July 12th. Eleven investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. The stock has a consensus rating of Buy and a consensus target price of $17.74.
Alcoa (NYSE:AA) traded down 0.82% on Thursday, hitting $26.53. 4,104,714 shares of the stock traded hands. The firm’s market capitalization is $11.63 billion. Alcoa has a 52 week low of $18.42 and a 52 week high of $34.50. The stock has a 50 day moving average of $29.62 and a 200 day moving average of $29.80.
Alcoa (NYSE:AA) last posted its quarterly earnings data on Tuesday, October 11th. The company reported $0.32 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.11 by $0.21. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The company earned $5.21 billion during the quarter. During the same quarter last year, the company earned $0.07 earnings per share. The company’s quarterly revenue was down 6.5% compared to the same quarter last year. Equities research analysts anticipate that Alcoa will post $0.44 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, November 25th. Shareholders of record on Friday, November 4th will be given a dividend of $0.03 per share. The ex-dividend date is Wednesday, November 2nd. This represents a $0.12 annualized dividend and a yield of 0.45%. Alcoa’s payout ratio is presently -63.15%.
In other Alcoa news, Director Ulrich Schmidt acquired 5,000 shares of the stock in a transaction dated Wednesday, July 20th. The stock was purchased at an average cost of $10.40 per share, for a total transaction of $52,000.00. Following the acquisition, the director now owns 10,000 shares in the company, valued at approximately $104,000. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Cupps Capital Management LLC bought a new position in shares of Alcoa during the first quarter worth about $109,000. Citizens Financial Group Inc RI increased its stake in Alcoa by 14.1% in the first quarter. Citizens Financial Group Inc RI now owns 11,349 shares of the company’s stock worth $109,000 after buying an additional 1,401 shares in the last quarter. AXA acquired a new stake in Alcoa during the first quarter worth $115,000. QUANTRES ASSET MANAGEMENT Ltd acquired a new stake in Alcoa during the second quarter worth $121,000. Finally, Savant Capital LLC increased its stake in Alcoa by 21.9% in the second quarter. Savant Capital LLC now owns 13,125 shares of the company’s stock worth $122,000 after buying an additional 2,360 shares in the last quarter.
Alcoa Company Profile
Alcoa Inc is engaged in lightweight metals engineering and manufacturing. The Company operates in five segments: Alumina, Primary Metals, Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company’s multi-material products, which include aluminum, titanium and nickel, are used across the world in aerospace, automobiles, commercial transportation, packaging, building and construction, defense, consumer electronics, oil and gas, and industrial applications.
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