Alcoa (NYSE:AA) Sets New 52-Week High – Should You Buy?

Alcoa (NYSE:AA)’s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $68.40 and last traded at $61.79, with a volume of 3570820 shares changing hands. The stock had previously closed at $63.84.

Analyst Ratings Changes

Several research analysts have recently issued reports on AA shares. Weiss Ratings restated a “hold (c)” rating on shares of Alcoa in a report on Monday, December 29th. B. Riley Financial reissued a “buy” rating on shares of Alcoa in a research report on Friday, January 23rd. Wells Fargo & Company cut their price target on Alcoa from $71.00 to $64.00 and set an “equal weight” rating for the company in a report on Friday, January 23rd. Zacks Research downgraded Alcoa from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Finally, Citigroup lifted their price objective on Alcoa from $42.00 to $54.00 and gave the stock a “buy” rating in a report on Friday, December 19th. Five equities research analysts have rated the stock with a Buy rating, six 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 has an average rating of “Hold” and a consensus target price of $48.25.

Alcoa Price Performance

The company has a market cap of $15.93 billion, a price-to-earnings ratio of 13.66 and a beta of 1.85. The company’s 50 day moving average price is $60.48 and its 200 day moving average price is $45.42. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.87 and a current ratio of 1.44.

Alcoa (NYSE:AA) last posted its earnings results on Thursday, January 22nd. The industrial products company reported $1.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.31. The company had revenue of $6.75 billion during the quarter, compared to analysts’ expectations of $3.28 billion. Alcoa had a net margin of 9.12% and a return on equity of 16.19%. Alcoa’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.04 earnings per share. On average, equities research analysts predict that Alcoa will post 4.43 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Tuesday, March 10th. Alcoa’s dividend payout ratio is presently 9.05%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd increased its position in Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 581 shares in the last quarter. Compound Planning Inc. acquired a new position in shares of Alcoa during the fourth quarter worth approximately $306,000. Invesco Ltd. grew its stake in shares of Alcoa by 247.9% during the fourth quarter. Invesco Ltd. now owns 2,415,697 shares of the industrial products company’s stock valued at $128,370,000 after purchasing an additional 1,721,280 shares during the last quarter. Corient Private Wealth LLC increased its holdings in shares of Alcoa by 52.5% in the fourth quarter. Corient Private Wealth LLC now owns 15,720 shares of the industrial products company’s stock valued at $835,000 after purchasing an additional 5,413 shares in the last quarter. Finally, Corecam AG bought a new position in Alcoa in the 4th quarter worth approximately $2,819,000.

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.