Alcoa (NYSE:AA) Trading 5.8% Higher – Here’s Why

Alcoa (NYSE:AA) shares traded up 5.8% during trading on Wednesday . The stock traded as high as $46.73 and last traded at $46.9180. 1,410,370 shares were traded during mid-day trading, a decline of 78% from the average session volume of 6,434,916 shares. The stock had previously closed at $44.35.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Bank of America reduced their price target on Alcoa from $57.00 to $51.00 and set an “underperform” rating for the company in a research report on Thursday, July 9th. B. Riley Financial cut their price objective on shares of Alcoa from $92.00 to $80.00 and set a “buy” rating on the stock in a research note on Tuesday, July 7th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $53.00 price objective (down from $79.00) on shares of Alcoa in a report on Wednesday, July 8th. Zacks Research lowered shares of Alcoa from a “hold” rating to a “strong sell” rating in a research report on Wednesday, July 8th. Finally, Wall Street Zen cut shares of Alcoa from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Alcoa currently has a consensus rating of “Hold” and an average price target of $61.09.

Alcoa Stock Down 1.9%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.92 and a current ratio of 1.53. The company has a market cap of $11.95 billion, a P/E ratio of 9.32, a P/E/G ratio of 0.52 and a beta of 1.63. The stock has a 50 day moving average price of $59.93 and a 200 day moving average price of $62.25.

Alcoa (NYSE:AA) last announced its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing the consensus estimate of $2.25 by ($0.13). The firm had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. During the same period in the prior year, the business earned $0.39 EPS. Research analysts expect that Alcoa will post 6.55 earnings per share for the current fiscal year.

Alcoa Announces Dividend

The firm 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 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s dividend payout ratio is presently 8.23%.

Hedge Funds Weigh In On Alcoa

Several hedge funds have recently made changes to their positions in AA. Moran Wealth Management LLC acquired a new position in Alcoa during the fourth quarter valued at $2,631,000. Merit Financial Group LLC lifted its stake in Alcoa by 114.2% in the 4th quarter. Merit Financial Group LLC now owns 28,945 shares of the industrial products company’s stock worth $1,538,000 after acquiring an additional 15,432 shares in the last quarter. Drummond Knight Asset Management Pty Ltd boosted its position in Alcoa by 14.1% during the 4th quarter. Drummond Knight Asset Management Pty Ltd now owns 1,060,523 shares of the industrial products company’s stock worth $56,356,000 after acquiring an additional 130,915 shares during the period. Evergreen Capital Management LLC acquired a new stake in Alcoa during the 4th quarter worth about $1,399,000. Finally, Wealth Enhancement Advisory Services LLC grew its stake in Alcoa by 278.2% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 67,093 shares of the industrial products company’s stock valued at $3,565,000 after acquiring an additional 49,354 shares in the last quarter.

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.