Alcoa (NYSE:AA) Lowered to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Alcoa (NYSE:AA) from a hold rating to a strong sell rating in a report published on Wednesday morning,Zacks.com reports.

A number of other equities research analysts have also commented on the company. Royal Bank Of Canada set a $70.00 price target on Alcoa in a research report on Wednesday, July 1st. Wells Fargo & Company boosted their price objective on Alcoa from $71.00 to $72.00 and gave the company an “overweight” rating in a research report on Thursday. Morgan Stanley reissued an “equal weight” rating and set a $53.00 target price (down from $79.00) on shares of Alcoa in a research note on Wednesday. BMO Capital Markets raised their target price on shares of Alcoa from $65.00 to $75.00 and gave the stock a “market perform” rating in a report on Thursday, April 9th. Finally, Citigroup lifted their price target on shares of Alcoa from $54.00 to $76.00 and gave the company a “buy” rating in a research note on Monday, March 16th. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $64.91.

Alcoa Price Performance

AA opened at $48.78 on Wednesday. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36. Alcoa has a 12 month low of $28.11 and a 12 month high of $84.38. The company has a fifty day simple moving average of $63.55 and a 200 day simple moving average of $62.78. The stock has a market cap of $12.87 billion, a P/E ratio of 12.35, a P/E/G ratio of 0.70 and a beta of 1.63.

Alcoa (NYSE:AA) last posted its earnings results on Thursday, April 16th. The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The business had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter in the prior year, the firm posted $2.15 earnings per share. The business’s revenue was down 5.2% on a year-over-year basis. On average, research analysts expect that Alcoa will post 8.07 EPS for the current year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 19th were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s dividend payout ratio (DPR) is currently 10.13%.

Institutional Investors Weigh In On Alcoa

Institutional investors have recently bought and sold shares of the company. Basepoint Wealth LLC bought a new position in shares of Alcoa during the 4th quarter worth approximately $25,000. Western Wealth Management LLC bought a new stake in shares of Alcoa in the first quarter worth $35,000. Raleigh Capital Management Inc. lifted its position in shares of Alcoa by 52,500.0% in the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 525 shares in the last quarter. CoreCap Advisors LLC boosted its holdings in Alcoa by 74.1% during the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock worth $30,000 after purchasing an additional 237 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Alcoa by 5,281.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 581 shares during the last quarter.

Key Stories Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Wells Fargo raised its price target on Alcoa to $72 from $71 and kept an overweight rating, signaling one analyst still sees meaningful upside. Alcoa had its price target raised by Wells Fargo & Company
• Neutral Sentiment: Alcoa was added to the Zacks Rank #5 “Strong Sell” list, which may reinforce bearish sentiment but is a model-based signal rather than a company-specific event. New Strong Sell Stocks for July 9th
• Neutral Sentiment: Benzinga highlighted Alcoa as one of several “oversold” materials stocks with RSI near or below 30, which could attract bargain hunters if investors look for a rebound. New Strong Sell Stocks for July 9th
• Negative Sentiment: Analyst sentiment has deteriorated as Morgan Stanley, JPMorgan, and Bank of America all trimmed their valuation views, citing weaker aluminum fundamentals and a less favorable supply outlook. Morgan Stanley upgrades Ivanhoe Mines, cuts Alcoa and Vale on metals outlook

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.