Traders Buy Alcoa Inc. (AA) on Weakness on Analyst Downgrade
Traders bought shares of Alcoa Inc. (NYSE:AA) on weakness during trading hours on Thursday after Zacks Investment Research downgraded the stock from a buy rating to a hold rating. $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
AA has been the topic of a number of other reports. Morgan Stanley reiterated an “overweight” rating and issued a $12.00 price target on shares of Alcoa in a report on Wednesday, October 5th. Bank of America Corp. reiterated a “buy” rating and issued a $33.00 price target on shares of Alcoa in a report on Wednesday. Seaport Global Securities initiated coverage on Alcoa in a research note on Friday, September 9th. They set a “neutral” rating and a $11.00 target price on the stock. Rosenblatt Securities restated a “buy” rating and set a $15.00 target price on shares of Alcoa in a research note on Friday, July 15th. Finally, Credit Suisse Group AG restated a “buy” rating on shares of Alcoa in a research note on Tuesday, July 12th. Eleven 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 stock. Alcoa presently has a consensus rating of “Buy” and an average target price of $17.74.
In other news, Director Ulrich Schmidt acquired 5,000 shares of the business’s stock in a transaction on Wednesday, July 20th. The stock was bought at an average cost of $10.40 per share, for a total transaction of $52,000.00. Following the purchase, the director now owns 10,000 shares in the company, valued at $104,000. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.
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A number of large investors have recently bought and sold shares of AA. Canandaigua National Bank & Trust Co. raised its stake in Alcoa by 0.3% in the third quarter. Canandaigua National Bank & Trust Co. now owns 26,223 shares of the company’s stock worth $266,000 after buying an additional 79 shares during the period. Bollard Group LLC raised its stake in Alcoa by 0.3% in the second quarter. Bollard Group LLC now owns 37,679 shares of the company’s stock worth $349,000 after buying an additional 120 shares during the period. Hollencrest Securities LLC raised its stake in Alcoa by 0.5% in the second quarter. Hollencrest Securities LLC now owns 41,420 shares of the company’s stock worth $384,000 after buying an additional 204 shares during the period. Washington Trust Bank raised its stake in Alcoa by 1.2% in the third quarter. Washington Trust Bank now owns 17,331 shares of the company’s stock worth $176,000 after buying an additional 206 shares during the period. Finally, Westport Resources Management Inc. raised its stake in Alcoa by 0.6% in the second quarter. Westport Resources Management Inc. now owns 45,540 shares of the company’s stock worth $422,000 after buying an additional 250 shares during the period.
The company’s market capitalization is $11.73 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 announced its quarterly earnings data on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.21. The firm earned $5.21 billion during the quarter. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. Alcoa’s revenue for the quarter was down 6.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.07 EPS. Equities research analysts predict that Alcoa Inc. will post $0.44 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Stockholders of record on Friday, November 4th will be given a dividend of $0.03 per share. The ex-dividend date of this dividend is Wednesday, November 2nd. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.45%. Alcoa’s payout ratio is -63.15%.
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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