Hennessy Advisors Inc. Makes New Investment in Alcoa $AA

Hennessy Advisors Inc. purchased a new position in Alcoa (NYSE:AA) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 154,000 shares of the industrial products company’s stock, valued at approximately $8,030,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Van ECK Associates Corp lifted its holdings in Alcoa by 39.0% in the second quarter. Van ECK Associates Corp now owns 982,917 shares of the industrial products company’s stock worth $51,249,000 after purchasing an additional 275,797 shares during the period. Hsbc Holdings PLC increased its stake in Alcoa by 19.7% during the 2nd quarter. Hsbc Holdings PLC now owns 366,741 shares of the industrial products company’s stock valued at $19,468,000 after buying an additional 60,257 shares during the period. Wellington Management Group LLP raised its position in shares of Alcoa by 17.5% during the 2nd quarter. Wellington Management Group LLP now owns 488,951 shares of the industrial products company’s stock worth $25,494,000 after buying an additional 72,926 shares in the last quarter. Lombard Odier Asset Management Europe Ltd bought a new stake in shares of Alcoa during the 2nd quarter worth about $3,537,000. Finally, Beacon Pointe Advisors LLC acquired a new stake in shares of Alcoa in the 2nd quarter worth approximately $315,000.

Analyst Ratings Changes

AA has been the subject of several recent analyst reports. BMO Capital Markets decreased their price objective on shares of Alcoa from $60.00 to $55.00 and set a “market perform” rating for the company in a report on Friday, July 17th. Argus decreased their price target on Alcoa from $73.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. decreased their price target on Alcoa from $55.00 to $52.00 and set a “neutral” rating for the company in a research note on Friday, July 17th. UBS Group lowered their price target on Alcoa from $80.00 to $68.00 and set a “buy” rating on the stock in a research report on Tuesday, June 30th. Finally, Wall Street Zen upgraded Alcoa from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Six investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Alcoa has a consensus rating of “Hold” and a consensus target price of $61.09.

Insiders Place Their Bets

In other Alcoa news, EVP Tammi A. 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 transaction of $790,776.80. Following the transaction, the executive vice president owned 39,819 shares in the company, valued at $2,014,841.40. This trade represents a 28.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Alcoa Stock Down 1.6%

AA stock opened at $50.35 on Friday. Alcoa has a 12 month low of $30.21 and a 12 month high of $84.38. The firm has a 50 day simple moving average of $49.03 and a 200 day simple moving average of $59.97. The firm has a market cap of $13.29 billion, a PE ratio of 10.36, a P/E/G ratio of 0.57 and a beta of 1.63. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92.

Alcoa (NYSE:AA) last released its quarterly earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts’ consensus estimates of $2.25 by ($0.13). Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The company had revenue of $3.97 billion during the quarter, compared to analyst estimates of $3.99 billion. During the same quarter last year, the business earned $0.39 EPS. Equities research analysts forecast that Alcoa will post 6.55 earnings per share for the current fiscal year.

Alcoa Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.8%. Alcoa’s dividend payout ratio is currently 8.23%.

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.