Alcoa (NYSE:AA) Stock Has Average Target Price of $58.23

Shares of Alcoa (NYSE:AA) have been given a consensus rating of “Hold” by the thirteen research firms that are presently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $58.23.

A number of equities research analysts have commented on AA shares. DA Davidson set a $62.00 price target on shares of Alcoa in a report on Tuesday. Zacks Research upgraded shares of Alcoa from a “strong sell” rating to a “hold” rating in a report on Monday, September 14th. Bank of America dropped their price objective on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating on the stock in a report on Thursday, July 9th. Argus reissued a “hold” rating on shares of Alcoa in a research report on Thursday. Finally, Freedom Broker reduced their target price on Alcoa from $76.00 to $62.00 and set a “buy” rating for the company in a research note on Tuesday.

Alcoa Stock Performance

Shares of AA stock opened at $37.96 on Wednesday. The firm has a 50 day moving average of $45.78 and a 200-day moving average of $55.03. The company has a market cap of $10.02 billion, a price-to-earnings ratio of 6.56, a price-to-earnings-growth ratio of 0.57 and a beta of 1.74. The company has a quick ratio of 1.66, a current ratio of 2.31 and a debt-to-equity ratio of 0.58. Alcoa has a 52 week low of $35.12 and a 52 week high of $84.38.

Alcoa (NYSE:AA) last released its earnings results on Thursday, October 15th. The industrial products company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.31. The company had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.77 billion. Alcoa had a net margin of 10.77% and a return on equity of 24.58%. Alcoa’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.88 EPS. On average, equities analysts forecast that Alcoa will post 6.70 earnings per share for the current year.

Alcoa Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, October 27th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, October 27th. Alcoa’s dividend payout ratio is 6.91%.

Key Stories Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa’s quarterly results benefited from improving smelter economics. The company previously reported adjusted earnings of $1.82 per share, above the $1.51 consensus estimate, while revenue increased 23.7% year over year to $3.70 billion. Alcoa Posts Quarterly Results As Smelter Economics Improve
• Neutral Sentiment: Alcoa’s valuation remains relatively modest, but its high beta and declining position below its 50-day and 200-day moving averages indicate elevated volatility and ongoing investor caution.
• Negative Sentiment: Argus Research downgraded Alcoa from Buy to Hold, citing mounting pricing pressure and expanding global aluminum supply. Argus warned that these conditions could weigh on near-term profit margins. Argus Research Downgrades Alcoa Alcoa Downgraded at Argus
• Negative Sentiment: The Argus downgrade triggered significant selling as investors focused on market headwinds, excess supply and the risk that weaker pricing will offset operational improvements. Alcoa Shares Fall After Argus Downgrade
• Negative Sentiment: Citigroup, B. Riley Financial and Freedom Broker each issued more pessimistic forecasts or lowered expectations for Alcoa, adding to the negative analyst sentiment surrounding the stock. Citigroup Forecast for Alcoa B. Riley Forecast for Alcoa Freedom Broker Expectations for Alcoa

Insider Buying and Selling

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

Hedge Funds Weigh In On Alcoa

Institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in Alcoa during the 2nd quarter valued at about $1,528,523,000. Quantbot Technologies LP bought a new stake in Alcoa during the 2nd quarter worth approximately $1,179,000. Fifth Third Bancorp raised its stake in shares of Alcoa by 3,061.2% in the first quarter. Fifth Third Bancorp now owns 63,098 shares of the industrial products company’s stock worth $4,185,000 after purchasing an additional 61,102 shares during the last quarter. XY Capital Ltd purchased a new stake in shares of Alcoa in the first quarter worth approximately $1,662,000. Finally, Advisors Preferred LLC purchased a new stake in shares of Alcoa in the first quarter worth approximately $1,613,000.

Alcoa Company Profile

Alcoa Corporation (NYSE:AA) is a global producer of bauxite, alumina and aluminum. Its operations span the aluminum value chain, including bauxite mining, alumina refining, aluminum smelting, casting and the production of value-added aluminum products. These materials serve customers in industries such as transportation, building and construction, packaging, aerospace and industrial manufacturing.

The company operates across multiple regions, with assets and activities in North America, South America, Europe, Australia and other international markets.