Alcoa Inc. (AA) Downgraded to “Hold” at Zacks Investment Research
Alcoa Inc. (NYSE:AA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.
According to Zacks, “Alcoa’s revenues and adjusted earnings for third-quarter 2016 missed the respective Zacks Consensus Estimate. Lower alumina prices dragged down its sales in the quarter. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Recent major contract wins (including Embraer and Boeing deals) in aerospace are also expected to support its results. However, weak metals pricing may continue to hurt Alcoa’s revenues. The company's downstream business is also seeing sustained pricing pressure. Moreover, Alcoa is exposed to weakness in the heavy duty truck and trailer market in North America and building and construction market in Europe.”
Other research analysts also recently issued reports about the company. Credit Suisse Group AG set a $39.00 price objective on Alcoa and gave the stock a “buy” rating in a report on Saturday, October 8th. Royal Bank Of Canada cut their price target on Alcoa to $31.00 and set a “sector perform” rating on the stock in a report on Wednesday. Deutsche Bank AG cut their price target on Alcoa to $33.00 and set a “buy” rating on the stock in a report on Wednesday. Bank of America Corp. reiterated a “buy” rating and issued a $33.00 price target on shares of Alcoa in a report on Wednesday. Finally, RBC Capital Markets reiterated a “sector perform” rating and issued a $31.00 price target (down from $33.00) on shares of Alcoa in a report on Wednesday. Eleven investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company’s stock. Alcoa currently has an average rating of “Buy” and an average price target of $17.74.
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Alcoa (NYSE:AA) traded down 2.14% during mid-day trading on Thursday, reaching $26.53. The company had a trading volume of 2,665,053 shares. Alcoa has a 52 week low of $18.42 and a 52 week high of $34.50. The firm’s market capitalization is $11.63 billion. The stock’s 50-day moving average price is $29.71 and its 200 day moving average price is $29.83.
Alcoa (NYSE:AA) last released its quarterly earnings data on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.11 by $0.21. The company had revenue of $5.21 billion for the quarter. Alcoa had a positive return on equity of 3.87% and a negative net margin of 0.88%. The company’s revenue for the quarter was down 6.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 earnings per share. On average, equities research analysts predict that Alcoa will post $0.44 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Investors 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 annualized dividend and a dividend yield of 0.44%. Alcoa’s dividend payout ratio is presently -63.15%.
In other Alcoa news, Director Ulrich Schmidt purchased 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 20th. The stock was purchased at an average price of $10.40 per share, for a total transaction of $52,000.00. Following the purchase, the director now directly owns 10,000 shares in the company, valued at $104,000. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.
Institutional investors have recently made changes to their positions in the stock. CIBC World Markets Inc. purchased a new stake in Alcoa during the first quarter valued at approximately $278,000. Ngam Advisors L.P. raised its stake in Alcoa by 16.6% in the first quarter. Ngam Advisors L.P. now owns 157,575 shares of the company’s stock valued at $1,510,000 after buying an additional 22,423 shares during the period. NN Investment Partners Holdings N.V. purchased a new stake in Alcoa during the first quarter valued at approximately $823,000. Brookfield Asset Management Inc. raised its stake in Alcoa by 6.0% in the first quarter. Brookfield Asset Management Inc. now owns 33,322 shares of the company’s stock valued at $319,000 after buying an additional 1,900 shares during the period. Finally, M&T Bank Corp raised its stake in Alcoa by 89.6% in the first quarter. M&T Bank Corp now owns 91,300 shares of the company’s stock valued at $875,000 after buying an additional 43,139 shares during the period.
Alcoa Company Profile
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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