Alcoa (NYSE:AA) Posts Earnings Results, Beats Estimates By $0.31 EPS

Alcoa (NYSE:AA) posted its earnings results on Thursday. The industrial products company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.31, FiscalAI reports. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The firm had revenue of $3.70 billion during the quarter, compared to the consensus estimate of $3.77 billion.

Alcoa Stock Up 0.5%

Shares of Alcoa stock traded up $0.22 during trading hours on Thursday, reaching $40.30. 7,744,808 shares of the company were exchanged, compared to its average volume of 5,835,597. The firm has a market cap of $10.63 billion, a PE ratio of 8.29, a PEG ratio of 0.51 and a beta of 1.74. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. Alcoa has a 1 year low of $35.12 and a 1 year high of $84.38. The stock’s fifty day moving average is $47.24 and its 200 day moving average is $56.27.

Alcoa Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were paid a $0.10 dividend. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 annualized dividend and a dividend yield of 1.0%. Alcoa’s payout ratio is 8.23%.

Analyst Ratings Changes

AA has been the topic of a number of research analyst reports. B. Riley Financial cut their target price on Alcoa from $92.00 to $80.00 and set a “buy” rating on the stock in a research report on Tuesday, July 7th. Wall Street Zen upgraded Alcoa from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Alcoa in a research note on Monday, September 14th. Wells Fargo & Company dropped their price objective on Alcoa from $71.00 to $60.00 and set an “overweight” rating for the company in a research note on Friday, September 18th. Finally, UBS Group cut their price objective on Alcoa from $80.00 to $68.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $60.54.

Insider Transactions at Alcoa

In other news, EVP Tammi Jones sold 15,628 shares of Alcoa stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $50.60, for a total value of $790,776.80. Following the completion of the transaction, the executive vice president owned 39,819 shares in the company, valued at approximately $2,014,841.40. This trade represents a 28.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Renato Bacchi sold 700 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $51.02, for a total transaction of $35,714.00. Following the sale, the executive vice president owned 74,930 shares in the company, valued at $3,822,928.60. The trade was a 0.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Alcoa News Summary

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Barclays begins coverage with an Overweight rating. The new $55 target signals confidence in Alcoa’s valuation and potential for earnings growth, helping offset investor caution ahead of results. Barclays initiates coverage of Alcoa with overweight rating
• Positive Sentiment: South32 shareholders approved the proposed sale of its aluminum and alumina assets to Alcoa. The approximately $8 billion transaction would expand Alcoa’s operating footprint and could improve scale and strategic positioning in the aluminum market, although completion remains subject to additional conditions. South32 shareholders back board changes and Alcoa asset sale at AGM
• Neutral Sentiment: Investors are focused on Alcoa’s upcoming third-quarter earnings. Analysts expect year-over-year revenue and earnings growth, supported by aluminum sales and smelter restarts. Options markets are also pricing a potentially meaningful post-earnings move, indicating elevated uncertainty. Alcoa gears up to post Q3 earnings
• Negative Sentiment: Alumina weakness and rising costs remain risks to the earnings outlook. These pressures could limit margin expansion or cause results and guidance to fall short of elevated investor expectations, particularly if aluminum prices or restart benefits disappoint. Alcoa earnings preview

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.