Encompass Capital Advisors LLC Lowers Holdings in Alcoa $AA

Encompass Capital Advisors LLC decreased its position in Alcoa (NYSE:AA) by 10.9% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 763,400 shares of the industrial products company’s stock after selling 93,820 shares during the period. Alcoa accounts for about 1.7% of Encompass Capital Advisors LLC’s investment portfolio, making the stock its 18th biggest position. Encompass Capital Advisors LLC’s holdings in Alcoa were worth $40,567,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of AA. Nordea Investment Management AB raised its stake in Alcoa by 187.7% in the fourth quarter. Nordea Investment Management AB now owns 408,624 shares of the industrial products company’s stock worth $21,902,000 after buying an additional 266,574 shares in the last quarter. Lighthouse Investment Partners LLC bought a new position in Alcoa in the third quarter worth approximately $5,606,000. Moran Wealth Management LLC bought a new position in Alcoa in the fourth quarter worth approximately $2,631,000. Regal Partners Ltd raised its stake in Alcoa by 7.0% in the third quarter. Regal Partners Ltd now owns 451,940 shares of the industrial products company’s stock worth $14,864,000 after buying an additional 29,612 shares in the last quarter. Finally, Merit Financial Group LLC raised its stake in Alcoa by 114.2% in the fourth quarter. Merit Financial Group LLC now owns 28,945 shares of the industrial products company’s stock worth $1,538,000 after buying an additional 15,432 shares in the last quarter.

Analysts Set New Price Targets

AA has been the subject of a number of recent research reports. Citigroup boosted their price objective on shares of Alcoa from $54.00 to $76.00 and gave the stock a “buy” rating in a research note on Monday, March 16th. Wells Fargo & Company set a $68.00 price objective on shares of Alcoa in a research note on Thursday, March 12th. JPMorgan Chase & Co. boosted their price objective on shares of Alcoa from $68.00 to $70.00 and gave the stock a “neutral” rating in a research note on Thursday, April 9th. BMO Capital Markets boosted their price objective on shares of Alcoa from $65.00 to $75.00 and gave the stock a “market perform” rating in a research note on Thursday, April 9th. Finally, Zacks Research downgraded shares of Alcoa from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $68.50.

Alcoa Price Performance

NYSE AA opened at $61.85 on Thursday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.48 and a quick ratio of 0.88. The stock’s fifty day moving average price is $68.93 and its 200 day moving average price is $61.96. Alcoa has a 1 year low of $27.72 and a 1 year high of $84.38. The company has a market cap of $16.32 billion, a price-to-earnings ratio of 15.66 and a beta of 1.56.

Alcoa (NYSE:AA) last released its earnings results on Thursday, April 16th. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The firm had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same period in the previous year, the company earned $2.15 earnings per share. Alcoa’s revenue was down 5.2% on a year-over-year basis. As a group, equities research analysts forecast that Alcoa will post 7.98 earnings per share for the current year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s dividend payout ratio (DPR) is currently 10.13%.

Alcoa 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.