Traders Buy Alcoa Inc. (AA) on Weakness on Analyst Downgrade
Traders purchased shares of Alcoa Inc. (NYSE:AA) on weakness during trading on Wednesday after Deutsche Bank AG lowered their price target on the stock to $33.00. $133.15 million flowed into the stock on the tick-up and $85.80 million flowed out of the stock on the tick-down, for a money net flow of $47.35 million into the stock. Of all companies tracked, Alcoa had the 6th highest net in-flow for the day. Alcoa traded down ($0.80) for the day and closed at $27.11
Several other equities analysts also recently weighed in on AA. Berenberg Bank reissued a “hold” rating and set a $9.00 target price on shares of Alcoa in a research report on Tuesday, June 14th. Rosenblatt Securities reissued a “buy” rating and set a $15.00 target price on shares of Alcoa in a research report on Wednesday, June 15th. Bank of America Corp. reissued a “buy” rating on shares of Alcoa in a research report on Friday, June 17th. Morgan Stanley reissued an “overweight” rating and set a $12.00 target price (up previously from $11.00) on shares of Alcoa in a research report on Thursday, June 30th. Finally, Credit Suisse Group AG reissued a “buy” rating on shares of Alcoa in a research report on Thursday, June 30th. Nine investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $16.15.
In other Alcoa news, Director Ulrich Schmidt bought 5,000 shares of Alcoa stock in a transaction that occurred on Wednesday, July 20th. The shares were bought at an average cost of $10.40 per share, with a total value of $52,000.00. Following the transaction, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $104,000. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
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A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Citizens Financial Group Inc RI raised its position in shares of Alcoa by 14.1% in the first quarter. Citizens Financial Group Inc RI now owns 11,349 shares of the company’s stock valued at $109,000 after buying an additional 1,401 shares in the last quarter. Cupps Capital Management LLC purchased a new position in shares of Alcoa during the first quarter worth $109,000. AXA purchased a new position in shares of Alcoa during the first quarter worth $115,000. QUANTRES ASSET MANAGEMENT Ltd purchased a new position in shares of Alcoa during the second quarter worth $121,000. Finally, Savant Capital LLC raised its position in shares of Alcoa by 21.9% in the second quarter. Savant Capital LLC now owns 13,125 shares of the company’s stock worth $122,000 after buying an additional 2,360 shares in the last quarter.
The firm’s 50-day moving average price is $29.84 and its 200 day moving average price is $29.85. The stock’s market cap is $11.89 billion.
Alcoa (NYSE:AA) last issued its quarterly earnings data on Tuesday, October 11th. The company reported $0.32 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.21. Alcoa had a positive return on equity of 3.44% and a negative net margin of 1.45%. The business earned $5.21 billion during the quarter. During the same period in the previous year, the firm posted $0.07 earnings per share. The company’s quarterly revenue was down 6.5% compared to the same quarter last year. On average, equities research analysts anticipate that Alcoa Inc. will post $0.44 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 25th. Stockholders of record on Friday, November 4th will be paid a $0.03 dividend. The ex-dividend date is Wednesday, November 2nd. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.44%. Alcoa’s payout ratio is presently -42.85%.
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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