Alcoa (NYSE:AA) Shares Gap Down – Should You Sell?

Alcoa Co. (NYSE:AA)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $33.34, but opened at $32.33. Alcoa shares last traded at $32.57, with a volume of 859,648 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. B. Riley raised shares of Alcoa to a “strong-buy” rating in a research report on Tuesday, January 21st. Bank of America upped their target price on Alcoa to $58.00 and gave the stock a “buy” rating in a report on Friday, January 24th. Morgan Stanley decreased their price target on Alcoa from $55.00 to $51.00 and set an “overweight” rating for the company in a research note on Tuesday, January 28th. JPMorgan Chase & Co. upped their price objective on Alcoa from $38.00 to $40.00 and gave the stock a “neutral” rating in a research note on Thursday, January 16th. Finally, Jefferies Financial Group decreased their target price on shares of Alcoa from $50.00 to $45.00 and set a “buy” rating for the company in a research note on Monday, January 6th. Four research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Alcoa currently has a consensus rating of “Moderate Buy” and a consensus price target of $50.17.

Alcoa Stock Down 2.8 %

The company has a current ratio of 1.45, a quick ratio of 0.86 and a debt-to-equity ratio of 0.48. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of -202.53, a PEG ratio of 0.19 and a beta of 2.55. The firm’s 50 day simple moving average is $35.07 and its two-hundred day simple moving average is $38.09.

Alcoa (NYSE:AA) last issued its quarterly earnings results on Wednesday, January 22nd. The industrial products company reported $1.04 EPS for the quarter, topping analysts’ consensus estimates of $0.91 by $0.13. Alcoa had a return on equity of 5.54% and a net margin of 0.50%. On average, equities analysts forecast that Alcoa Co. will post 4.43 EPS for the current year.

Alcoa Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 20th. Investors of record on Tuesday, March 4th were paid a $0.10 dividend. The ex-dividend date of this dividend was Tuesday, March 4th. This represents a $0.40 dividend on an annualized basis and a yield of 1.23%. Alcoa’s dividend payout ratio (DPR) is -250.00%.

Institutional Investors Weigh In On Alcoa

A number of large investors have recently modified their holdings of AA. Retirement Systems of Alabama lifted its position in shares of Alcoa by 41.6% during the 3rd quarter. Retirement Systems of Alabama now owns 313,822 shares of the industrial products company’s stock worth $12,107,000 after buying an additional 92,201 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Alcoa by 6.2% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 628,116 shares of the industrial products company’s stock worth $24,233,000 after acquiring an additional 36,869 shares in the last quarter. Mountaineer Partners Management LLC lifted its holdings in shares of Alcoa by 4,023.0% in the third quarter. Mountaineer Partners Management LLC now owns 10,795,880 shares of the industrial products company’s stock worth $416,505,000 after acquiring an additional 10,534,036 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Alcoa by 42.0% in the 3rd quarter. Geode Capital Management LLC now owns 4,193,744 shares of the industrial products company’s stock valued at $161,838,000 after purchasing an additional 1,239,479 shares in the last quarter. Finally, Impala Asset Management LLC bought a new stake in shares of Alcoa during the 3rd quarter valued at approximately $6,366,000. Institutional investors and hedge funds own 82.39% of the company’s stock.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.