Alcoa (NYSE:AA) Receives Average Recommendation of “Hold” from Brokerages

Shares of Alcoa (NYSE:AA) have earned an average recommendation of “Hold” from the eleven ratings firms that are covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $64.9091.

A number of research analysts have weighed in on the company. JPMorgan Chase & Co. reduced their target price on Alcoa from $70.00 to $55.00 and set a “neutral” rating for the company in a report on Thursday. Zacks Research downgraded shares of Alcoa from a “hold” rating to a “strong sell” rating in a report on Wednesday, July 8th. Weiss Ratings upgraded shares of Alcoa from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, June 17th. B. Riley Financial reduced their price objective on shares of Alcoa from $92.00 to $80.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. Finally, Royal Bank Of Canada set a $70.00 price objective on shares of Alcoa in a research note on Wednesday, July 1st.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in AA. Basepoint Wealth LLC purchased a new stake in shares of Alcoa in the fourth quarter worth $25,000. Advisory Services Network LLC bought a new stake in Alcoa during the third quarter valued at $27,000. Raleigh Capital Management Inc. grew its position in Alcoa by 52,500.0% during the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock worth $28,000 after buying an additional 525 shares in the last quarter. CoreCap Advisors LLC grew its position in Alcoa by 74.1% during the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock worth $30,000 after buying an additional 237 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock worth $31,000 after acquiring an additional 581 shares during the last quarter.

Alcoa Trading Up 0.0%

NYSE:AA opened at $48.69 on Monday. Alcoa has a 1 year low of $28.11 and a 1 year high of $84.38. The stock’s fifty day moving average price is $63.28 and its two-hundred day moving average price is $62.74. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.48 and a quick ratio of 0.88. The company has a market cap of $12.85 billion, a P/E ratio of 12.33, a P/E/G ratio of 0.49 and a beta of 1.63.

Alcoa (NYSE:AA) last announced its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The company had revenue of $3.19 billion during the quarter, compared to analysts’ expectations of $3.35 billion. During the same quarter last year, the firm posted $2.15 earnings per share. Alcoa’s revenue for the quarter was down 5.2% compared to the same quarter last year. As a group, analysts expect that Alcoa will post 7.41 EPS for the current year.

Alcoa Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were issued a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s dividend payout ratio (DPR) is presently 10.13%.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Wells Fargo raised its price target on Alcoa to $72 from $71 and reiterated an overweight rating, signaling confidence in the stock’s longer-term potential.
• Neutral Sentiment: J.P. Morgan initiated/maintained a hold view and set a new $55 price target, which is above the recent trading level but still suggests limited near-term conviction. Alcoa (AA) Receives a Hold from J.P. Morgan
• Neutral Sentiment: Alcoa is expected to report earnings soon, keeping the stock in focus for a potential catalyst if results or guidance surprise investors. Alcoa (AA) Expected to Post Earnings on Thursday
• Negative Sentiment: Zacks Research downgraded Alcoa from hold to strong sell, adding to bearish sentiment around the name. Alcoa Downgraded by Zacks Research
• Negative Sentiment: Bank of America cut its price target to $51 from $57 and kept an underperform rating, reflecting a more cautious view on valuation and near-term fundamentals. Alcoa (NYSE:AA) Price Target Lowered to $51.00 at Bank of America
• Negative Sentiment: J.P. Morgan also lowered its price target to $55 from $70 while keeping a neutral rating, reinforcing the recent downgrade trend. Alcoa price target lowered by JPMorgan
• Negative Sentiment: Alcoa was added to Zacks’ Strong Sell list, which may weigh on sentiment as investors look for signs of weakening expectations. New Strong Sell Stocks for July 9th
• Negative Sentiment: Morgan Stanley assigned an equal weight rating, which adds to the overall mixed-to-cautious analyst backdrop. Alcoa Receives Equal Weight Rating from Morgan Stanley

About Alcoa

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.