Alcoa Inc. (AA) Upgraded by Zacks Investment Research to Buy
Alcoa Inc. (NYSE:AA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm presently has a $11.00 price target on the stock. Zacks Investment Research’s target price would suggest a potential downside of 64.93% from the stock’s current price.
According to Zacks, “Estimates for Alcoa have been stable lately ahead of its third-quarter 2016 earnings release. The company has a positive record of earnings surprises in recent quarters. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Favorable demand trends across aerospace and automotive markets and recent major contract wins (including Embraer and Boeing deals) are also expected to support its results.”
Other equities analysts have also issued reports about the stock. Cowen and Company reiterated a “hold” rating on shares of Alcoa in a research note on Tuesday, July 12th. Morgan Stanley reiterated an “overweight” rating and issued a $12.00 price target (up from $11.00) on shares of Alcoa in a research note on Thursday, June 30th. Rosenblatt Securities reiterated a “buy” rating and issued a $15.00 price target on shares of Alcoa in a research note on Wednesday, June 15th. Argus reiterated a “hold” rating on shares of Alcoa in a research note on Friday, July 15th. Finally, Macquarie reiterated a “buy” rating on shares of Alcoa in a research note on Tuesday, July 12th. Nine investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. Alcoa has a consensus rating of “Buy” and a consensus price target of $11.10.
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Alcoa (NYSE:AA) opened at 31.37 on Tuesday. Alcoa has a 1-year low of $18.42 and a 1-year high of $34.50. The firm’s market capitalization is $13.75 billion. The company has a 50 day moving average of $29.91 and a 200 day moving average of $29.82.
Alcoa (NYSE:AA) last announced its quarterly earnings results on Monday, July 11th. The company reported $0.15 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.09 by $0.06. The company had revenue of $5.30 billion for the quarter. Alcoa had a negative net margin of 1.45% and a positive return on equity of 3.44%. The business’s revenue for the quarter was down 10.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.19 earnings per share. Analysts forecast that Alcoa will post $0.44 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Stockholders of record on Friday, November 4th will be paid a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 0.38%. The ex-dividend date is Wednesday, November 2nd. Alcoa’s dividend payout ratio (DPR) is presently -42.85%.
In other news, Director Ulrich Schmidt purchased 5,000 shares of the business’s stock in a transaction dated Wednesday, July 20th. The stock was acquired at an average price of $10.40 per share, with a total value of $52,000.00. Following the purchase, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $104,000. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in AA. Vanguard Group Inc. boosted its stake in Alcoa by 2.9% in the second quarter. Vanguard Group Inc. now owns 118,489,630 shares of the company’s stock worth $1,098,398,000 after buying an additional 3,387,829 shares in the last quarter. First Pacific Advisors LLC boosted its stake in Alcoa by 13.5% in the second quarter. First Pacific Advisors LLC now owns 64,456,242 shares of the company’s stock worth $597,509,000 after buying an additional 7,650,380 shares in the last quarter. Orbis Allan Gray Ltd bought a new stake in Alcoa during the first quarter worth approximately $374,584,000. BlackRock Institutional Trust Company N.A. boosted its stake in Alcoa by 3.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 34,741,129 shares of the company’s stock worth $322,050,000 after buying an additional 1,074,056 shares in the last quarter. Finally, BlackRock Group LTD boosted its stake in Alcoa by 0.4% in the first quarter. BlackRock Group LTD now owns 13,821,640 shares of the company’s stock worth $132,411,000 after buying an additional 55,116 shares in the last quarter.
Alcoa Inc is engaged in lightweight metals engineering and manufacturing. The Company operates in five segments: Alumina, Primary Metals, Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company’s multi-material products, which include aluminum, titanium and nickel, are used across the world in aerospace, automobiles, commercial transportation, packaging, building and construction, defense, consumer electronics, oil and gas, and industrial applications.
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