Alcoa Inc. (NYSE:AA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Alcoa’s revenues and adjusted earnings for third-quarter 2016 missed the respective Zacks Consensus Estimate. Lower alumina prices dragged down its sales in the quarter. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Recent major contract wins (including Embraer and Boeing deals) in aerospace are also expected to support its results. However, weak metals pricing may continue to hurt Alcoa’s revenues. The company's downstream business is also seeing sustained pricing pressure. Moreover, Alcoa is exposed to weakness in the heavy duty truck and trailer market in North America and building and construction market in Europe.”
AA has been the topic of several other research reports. Credit Suisse Group AG set a $39.00 price objective on shares of Alcoa and gave the stock a “buy” rating in a research note on Saturday, October 8th. JPMorgan Chase & Co. reissued a “hold” rating on shares of Alcoa in a research note on Tuesday, July 12th. BMO Capital Markets reaffirmed a “hold” rating and issued a $9.00 price target on shares of Alcoa in a research note on Tuesday, July 12th. Cowen and Company lifted their price target on shares of Alcoa from $10.00 to $30.00 and gave the company a “market perform” rating in a research note on Thursday. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $15.00 price target on shares of Alcoa in a research note on Wednesday, June 15th. Eleven equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $17.74.
Alcoa (NYSE:AA) opened at 27.11 on Thursday. Alcoa has a 1-year low of $18.42 and a 1-year high of $34.50. The firm’s market cap is $11.89 billion. The firm has a 50-day moving average of $29.71 and a 200 day moving average of $29.83.
Alcoa (NYSE:AA) last issued its earnings results on Tuesday, October 11th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.21. The company had revenue of $5.21 billion for the quarter. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The firm’s revenue for the quarter was down 6.5% compared to the same quarter last year. During the same period last year, the business posted $0.07 EPS. Analysts expect that Alcoa will post $0.44 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 25th. Investors of record on Friday, November 4th will be given a dividend of $0.03 per share. The ex-dividend date of this dividend is Wednesday, November 2nd. This represents a $0.12 annualized dividend and a yield of 0.44%. Alcoa’s dividend payout ratio is -63.15%.
In other news, Director Ulrich Schmidt acquired 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 20th. The stock was acquired at an average price of $10.40 per share, with a total value of $52,000.00. Following the completion of the transaction, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $104,000. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
A number of large investors have recently bought and sold shares of AA. Canandaigua National Bank & Trust Co. boosted its stake in Alcoa by 0.3% in the third quarter. Canandaigua National Bank & Trust Co. now owns 26,223 shares of the company’s stock valued at $266,000 after buying an additional 79 shares in the last quarter. Patten & Patten Inc. TN boosted its stake in Alcoa by 46.1% in the third quarter. Patten & Patten Inc. TN now owns 187,177 shares of the company’s stock valued at $1,898,000 after buying an additional 59,050 shares in the last quarter. Nisa Investment Advisors LLC boosted its stake in Alcoa by 0.9% in the third quarter. Nisa Investment Advisors LLC now owns 174,582 shares of the company’s stock valued at $1,770,000 after buying an additional 1,618 shares in the last quarter. Capstone Asset Management Co. boosted its stake in Alcoa by 1.4% in the third quarter. Capstone Asset Management Co. now owns 199,869 shares of the company’s stock valued at $2,027,000 after buying an additional 2,802 shares in the last quarter. Finally, British Columbia Investment Management Corp boosted its stake in Alcoa by 9.8% in the third quarter. British Columbia Investment Management Corp now owns 556,317 shares of the company’s stock valued at $5,641,000 after buying an additional 49,809 shares in the last quarter.
Alcoa Company Profile
Alcoa Inc is engaged in lightweight metals engineering and manufacturing. The Company operates in five segments: Alumina, Primary Metals, Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company’s multi-material products, which include aluminum, titanium and nickel, are used across the world in aerospace, automobiles, commercial transportation, packaging, building and construction, defense, consumer electronics, oil and gas, and industrial applications.