Kaiser Aluminum (NASDAQ:KALU) Shares Gap Down Following Weak Earnings

Kaiser Aluminum Corporation (NASDAQ:KALU) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $153.95, but opened at $134.90. Kaiser Aluminum shares last traded at $122.8820, with a volume of 124,888 shares.

The industrial products company reported $1.89 earnings per share for the quarter, missing the consensus estimate of $2.37 by ($0.48). The business had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Kaiser Aluminum had a net margin of 5.49% and a return on equity of 24.71%. The business’s revenue was up 43.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.86 EPS.

Kaiser Aluminum Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 23rd will be given a $0.77 dividend. This represents a $3.08 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Friday, October 23rd. Kaiser Aluminum’s dividend payout ratio is 22.83%.

Analyst Ratings Changes

Several equities research analysts have issued reports on KALU shares. Wall Street Zen upgraded shares of Kaiser Aluminum from a “buy” rating to a “strong-buy” rating in a research report on Sunday, August 2nd. Barclays initiated coverage on shares of Kaiser Aluminum in a research note on Wednesday, October 14th. They issued an “overweight” rating and a $180.00 price target for the company. UBS Group raised shares of Kaiser Aluminum from a “neutral” rating to a “buy” rating and increased their price target for the stock from $179.00 to $184.00 in a report on Monday, August 31st. KeyCorp lowered their price objective on shares of Kaiser Aluminum from $183.00 to $181.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. Finally, Wells Fargo & Company raised shares of Kaiser Aluminum from an “underweight” rating to an “equal weight” rating and dropped their price objective for the stock from $169.00 to $160.00 in a report on Friday, September 18th. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Kaiser Aluminum presently has a consensus rating of “Hold” and an average price target of $169.40.

Hedge Funds Weigh In On Kaiser Aluminum

Several institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp purchased a new position in shares of Kaiser Aluminum during the 2nd quarter valued at about $38,353,000. Bank of America Corp DE lifted its position in Kaiser Aluminum by 0.9% in the 1st quarter. Bank of America Corp DE now owns 171,369 shares of the industrial products company’s stock worth $20,652,000 after buying an additional 1,508 shares during the last quarter. Principal Financial Group Inc. grew its position in Kaiser Aluminum by 32.4% during the first quarter. Principal Financial Group Inc. now owns 101,510 shares of the industrial products company’s stock valued at $12,233,000 after acquiring an additional 24,853 shares during the last quarter. Empowered Funds LLC grew its position in Kaiser Aluminum by 3.8% during the first quarter. Empowered Funds LLC now owns 76,781 shares of the industrial products company’s stock valued at $9,253,000 after acquiring an additional 2,829 shares during the last quarter. Finally, Sei Investments Co. grew its position in Kaiser Aluminum by 59.2% during the first quarter. Sei Investments Co. now owns 62,842 shares of the industrial products company’s stock valued at $7,573,000 after acquiring an additional 23,373 shares during the last quarter. 99.29% of the stock is currently owned by institutional investors.

Kaiser Aluminum Price Performance

The stock has a market capitalization of $2.01 billion, a PE ratio of 9.10 and a beta of 1.59. The firm’s 50 day simple moving average is $156.18 and its 200 day simple moving average is $165.35. The company has a debt-to-equity ratio of 1.10, a current ratio of 2.50 and a quick ratio of 1.17.

About Kaiser Aluminum

Kaiser Aluminum Corporation is a producer of semi-fabricated aluminum products used by manufacturers in the aerospace and defense, automotive, industrial, and consumer products markets. The company supplies aluminum materials designed for applications that require strength, light weight, corrosion resistance, and other specialized performance characteristics.

Its product portfolio includes rolled aluminum sheet and plate, extruded products, forged components, and other fabricated aluminum products.