Alcoa (NYSE:AA) Downgraded by Wall Street Zen to Buy

Wall Street Zen downgraded shares of Alcoa (NYSE:AA) from a strong-buy rating to a buy rating in a research report report published on Sunday,Wall Street Zen reports.

Several other equities research analysts also recently commented on AA. Royal Bank Of Canada set a $70.00 price objective on Alcoa in a report on Wednesday, July 1st. Zacks Research upgraded shares of Alcoa from a “strong sell” rating to a “hold” rating in a report on Monday, September 14th. Bank of America dropped their price target on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating on the stock in a research report on Thursday, July 9th. DA Davidson set a $62.00 price target on shares of Alcoa in a research note on Tuesday, October 20th. Finally, Morgan Stanley cut their price target on shares of Alcoa from $53.00 to $50.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 7th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Alcoa has an average rating of “Hold” and a consensus price target of $58.23.

Alcoa Stock Up 0.1%

Shares of AA stock opened at $37.96 on Friday. The company has a current ratio of 2.31, a quick ratio of 1.66 and a debt-to-equity ratio of 0.58. Alcoa has a 1 year low of $35.12 and a 1 year high of $84.38. The firm’s fifty day moving average price is $45.78 and its two-hundred day moving average price is $54.91. The firm has a market capitalization of $10.02 billion, a P/E ratio of 6.56, a PEG ratio of 0.56 and a beta of 1.74.

Alcoa (NYSE:AA) last posted its quarterly earnings data on Thursday, October 15th. The industrial products company reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.51 by $0.31. Alcoa had a net margin of 10.77% and a return on equity of 24.58%. The company had revenue of $3.70 billion during the quarter, compared to the consensus estimate of $3.77 billion. During the same period in the prior year, the business posted $0.88 EPS. The company’s quarterly revenue was up 23.7% on a year-over-year basis. On average, equities analysts predict that Alcoa will post 6.70 EPS for the current fiscal year.

Alcoa Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Tuesday, October 27th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Tuesday, October 27th. This represents a $0.40 dividend on an annualized basis and a yield of 1.1%. Alcoa’s payout ratio is currently 6.91%.

Insider Activity at Alcoa

In other news, EVP Tammi Jones sold 15,628 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the completion of the sale, the executive vice president directly owned 39,819 shares in the company, valued at approximately $2,014,841.40. This represents a 28.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Renato Bacchi sold 700 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $51.02, for a total transaction of $35,714.00. Following the sale, the executive vice president owned 74,930 shares in the company, valued at $3,822,928.60. The trade was a 0.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Checchi Capital Advisers LLC grew its holdings in shares of Alcoa by 3.4% during the 1st quarter. Checchi Capital Advisers LLC now owns 5,138 shares of the industrial products company’s stock worth $341,000 after purchasing an additional 170 shares in the last quarter. Essential Partners LLC increased its position in shares of Alcoa by 0.9% during the first quarter. Essential Partners LLC now owns 20,525 shares of the industrial products company’s stock valued at $1,361,000 after purchasing an additional 193 shares during the period. Himension Capital Singapore PTE. LTD. raised its stake in shares of Alcoa by 1.3% in the first quarter. Himension Capital Singapore PTE. LTD. now owns 18,626 shares of the industrial products company’s stock valued at $1,235,000 after purchasing an additional 246 shares in the last quarter. Sage Rhino Capital LLC raised its stake in shares of Alcoa by 7.0% in the first quarter. Sage Rhino Capital LLC now owns 4,276 shares of the industrial products company’s stock valued at $284,000 after purchasing an additional 279 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. raised its stake in shares of Alcoa by 4.6% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,373 shares of the industrial products company’s stock valued at $332,000 after purchasing an additional 282 shares in the last quarter.

Key Stories Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa’s quarterly results benefited from improving smelter economics. The company previously reported adjusted earnings of $1.82 per share, above the $1.51 consensus estimate, while revenue increased 23.7% year over year to $3.70 billion. Alcoa Posts Quarterly Results As Smelter Economics Improve
• Neutral Sentiment: Alcoa’s valuation remains relatively modest, but its high beta and declining position below its 50-day and 200-day moving averages indicate elevated volatility and ongoing investor caution.
• Negative Sentiment: Argus Research downgraded Alcoa from Buy to Hold, citing mounting pricing pressure and expanding global aluminum supply. Argus warned that these conditions could weigh on near-term profit margins. Argus Research Downgrades Alcoa Alcoa Downgraded at Argus
• Negative Sentiment: The Argus downgrade triggered significant selling as investors focused on market headwinds, excess supply and the risk that weaker pricing will offset operational improvements. Alcoa Shares Fall After Argus Downgrade
• Negative Sentiment: Citigroup, B. Riley Financial and Freedom Broker each issued more pessimistic forecasts or lowered expectations for Alcoa, adding to the negative analyst sentiment surrounding the stock. Citigroup Forecast for Alcoa B. Riley Forecast for Alcoa Freedom Broker Expectations for Alcoa

Alcoa Company Profile

Alcoa Corporation (NYSE:AA) is a global producer of bauxite, alumina and aluminum. Its operations span the aluminum value chain, including bauxite mining, alumina refining, aluminum smelting, casting and the production of value-added aluminum products. These materials serve customers in industries such as transportation, building and construction, packaging, aerospace and industrial manufacturing.

The company operates across multiple regions, with assets and activities in North America, South America, Europe, Australia and other international markets.