Goldman Sachs Group Inc. Reiterates “Neutral” Rating for Alcoa (AA)
Alcoa (NYSE:AA)‘s stock had its “neutral” rating restated by stock analysts at Goldman Sachs Group Inc. in a report issued on Tuesday, AnalystRatingsNetwork reports.
The analysts wrote, “The marking to market of aluminum prices and FX rates lowered our 3Q13 EPS forecast to $0.05 from $0.08. We expect this quarter to be weaker sequentially, with a $0.03 per share negative impact from aluminum prices and FX, based on company guided sensitivities. However, this is partially offset by a $10mn ($0.01/sh) gain in ATOI in the company’s upstream segment, as guided during 2Q13 earnings. Therefore, we expect EPS for 3Q13 to decline to $0.05 from $0.07 in 2Q13. Consensus is slightly above our estimate at $0.06. There are no changes to our forward estimates. We maintain our six-month P/E-, EV/EBITDA-, and DCF-based target price of $8.00. We maintain our Neutral rating on AA.”
AA has been the subject of a number of other recent research reports. Analysts at Morgan Stanley downgraded shares of Alcoa from an “overweight” rating to an “equal weight” rating in a research note to investors on Monday. They now have a $9.00 price target on the stock, down previously from $10.00. Separately, analysts at RBC Capital reiterated an “underperform” rating on shares of Alcoa in a research note to investors on Friday. They now have a $9.00 price target on the stock. Finally, analysts at Deutsche Bank downgraded shares of Alcoa from a “hold” rating to a “sell” rating in a research note to investors on Wednesday, October 2nd. They now have a $5.50 price target on the stock, down previously from $9.00. Six equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $8.45.
Alcoa (NYSE:AA) traded down 0.69% during mid-day trading on Tuesday, hitting $7.915. The stock had a trading volume of 15,623,581 shares. Alcoa has a 1-year low of $7.63 and a 1-year high of $9.37. The stock’s 50-day moving average is $8.0 and its 200-day moving average is $8.19. The company has a market cap of $8.465 billion and a P/E ratio of 66.97. Alcoa also was the recipient of unusually large options trading activity on Monday. Investors acquired 28,824 call options on the company. This is an increase of 190% compared to the typical volume of 9,949 call options.
The company also recently declared a quarterly dividend, which is scheduled for Monday, November 25th. Stockholders of record on Friday, November 8th will be given a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 1.51%. The ex-dividend date of this dividend is Wednesday, November 6th.
Alcoa Inc (NYSE:AA) is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined, through its participation in technology, mining, refining, smelting, fabricating, and recycling.
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