Alcoa (NYSE:AA) Stock Price Up 5.8% – Here’s Why

Alcoa (NYSE:AA)’s stock price rose 5.8% on Wednesday . The stock traded as high as $46.73 and last traded at $46.9180. Approximately 1,410,370 shares were traded during trading, a decline of 78% from the average daily volume of 6,434,916 shares. The stock had previously closed at $44.35.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. UBS Group decreased their price objective on Alcoa from $80.00 to $68.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. B. Riley Financial reduced their price target on shares of Alcoa from $92.00 to $80.00 and set a “buy” rating for the company in a research report on Tuesday, July 7th. Morgan Stanley restated an “equal weight” rating and set a $53.00 price target (down from $79.00) on shares of Alcoa in a report on Wednesday, July 8th. Bank of America lowered their price objective on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating on the stock in a research report on Thursday, July 9th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Alcoa from $55.00 to $52.00 and set a “neutral” rating on the stock in a research note on Friday, July 17th. Six equities 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 stock has an average rating of “Hold” and a consensus target price of $61.09.

Alcoa Stock Performance

The firm has a 50-day simple moving average of $60.80 and a two-hundred day simple moving average of $62.38. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $12.24 billion, a price-to-earnings ratio of 9.54, a price-to-earnings-growth ratio of 0.48 and a beta of 1.63.

Alcoa (NYSE:AA) last announced its quarterly earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.25 by ($0.13). The firm had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. During the same quarter in the prior year, the firm earned $0.39 earnings per share. As a group, sell-side analysts forecast that Alcoa will post 6.72 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were paid a $0.10 dividend. The ex-dividend date was Tuesday, May 19th. This represents a $0.40 dividend on an annualized basis and a yield of 0.9%. Alcoa’s payout ratio is 8.23%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of AA. Basepoint Wealth LLC bought a new position in shares of Alcoa during the 4th quarter valued at $25,000. Advisory Services Network LLC bought a new position in shares of Alcoa in the 3rd quarter valued at approximately $27,000. Raleigh Capital Management Inc. lifted its stake 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 buying an additional 525 shares during the last quarter. CoreCap Advisors LLC lifted its position in Alcoa by 74.1% during the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock worth $30,000 after acquiring an additional 237 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Alcoa by 5,281.8% during the 4th 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.

About Alcoa

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.