Traders Purchase High Volume of Call Options on Alcoa (NYSE:AA)

Alcoa (NYSE:AA) was the recipient of unusually large options trading on Wednesday. Investors acquired 30,398 call options on the company. This represents an increase of approximately 51% compared to the average volume of 20,117 call options.

Alcoa Stock Performance

Shares of NYSE:AA traded down $6.72 during mid-day trading on Wednesday, reaching $65.70. The company had a trading volume of 6,507,856 shares, compared to its average volume of 6,377,884. The company has a current ratio of 1.48, a quick ratio of 0.88 and a debt-to-equity ratio of 0.36. The firm has a market cap of $17.34 billion, a price-to-earnings ratio of 16.63 and a beta of 1.56. The company’s 50-day moving average price is $69.39 and its 200-day moving average price is $60.84. Alcoa has a one year low of $27.72 and a one year high of $84.38.

Alcoa (NYSE:AA) last posted its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.20). The company had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.35 billion. Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The company’s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same period last year, the firm posted $2.15 EPS. As a group, equities research analysts anticipate that Alcoa will post 7.95 EPS for the current fiscal year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Tuesday, May 19th were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s payout ratio is 10.13%.

Analyst Upgrades and Downgrades

AA has been the topic of a number of research analyst reports. Weiss Ratings downgraded Alcoa from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 1st. Wall Street Zen downgraded Alcoa from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Argus set a $73.00 target price on Alcoa in a research note on Monday, April 27th. Zacks Research downgraded Alcoa from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Finally, B. Riley Financial boosted their target price on Alcoa from $78.00 to $96.00 and gave the stock a “buy” rating in a research note on Tuesday, April 7th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $68.60.

Institutional Investors Weigh In On Alcoa

A number of hedge funds have recently modified their holdings of AA. Mirabella Financial Services LLP raised its holdings in shares of Alcoa by 12,233.1% in the 3rd quarter. Mirabella Financial Services LLP now owns 40,082,462 shares of the industrial products company’s stock worth $1,318,312,000 after purchasing an additional 39,757,462 shares during the period. Bank of New York Mellon Corp raised its holdings in Alcoa by 211.7% during the 4th quarter. Bank of New York Mellon Corp now owns 6,254,017 shares of the industrial products company’s stock valued at $332,338,000 after acquiring an additional 4,247,559 shares during the period. Castle Hook Partners LP bought a new stake in Alcoa during the 4th quarter valued at $210,874,000. Maple Rock Capital Partners Inc. bought a new stake in Alcoa during the 4th quarter valued at $173,412,000. Finally, AQR Capital Management LLC raised its holdings in Alcoa by 153.4% during the 4th quarter. AQR Capital Management LLC now owns 4,134,425 shares of the industrial products company’s stock valued at $219,703,000 after acquiring an additional 2,503,132 shares during the period.

Alcoa Company Profile

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.