Alcoa Inc. (AA) Upgraded at Zacks Investment Research
Alcoa Inc. (NYSE:AA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm currently has a $11.00 price objective on the stock. Zacks Investment Research’s price objective would indicate a potential upside of 8.70% from the company’s current price.
According to Zacks, “Estimates for Alcoa have been stable lately ahead of its third-quarter 2016 earnings release. The company has a positive record of earnings surprises in recent quarters. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Favorable demand trends across aerospace and automotive markets and recent major contract wins (including Embraer and Boeing deals) are also expected to support its results.”
Several other equities research analysts have also recently issued reports on the stock. Seaport Global Securities began coverage on shares of Alcoa in a research report on Friday, September 9th. They issued a “neutral” rating and a $11.00 price objective for the company. Morgan Stanley reissued a “buy” rating and issued a $12.00 price objective on shares of Alcoa in a research report on Tuesday, August 16th. Argus reissued a “hold” rating on shares of Alcoa in a research report on Friday, July 15th. Rosenblatt Securities reissued a “buy” rating and issued a $15.00 price objective on shares of Alcoa in a research report on Friday, July 15th. Finally, BMO Capital Markets reissued a “hold” rating and issued a $9.00 price objective on shares of Alcoa in a research report on Tuesday, July 12th. Nine equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus price target of $11.10.
Shares of Alcoa (NYSE:AA) traded up 0.30% during midday trading on Tuesday, hitting $10.15. 17,651,620 shares of the company traded hands. The company has a 50-day moving average price of $9.97 and a 200-day moving average price of $9.93. The stock’s market capitalization is $13.35 billion. Alcoa has a 52 week low of $6.14 and a 52 week high of $11.50.
Alcoa (NYSE:AA) last released its quarterly earnings data on Monday, July 11th. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.06. The company earned $5.30 billion during the quarter. Alcoa had a negative net margin of 1.45% and a positive return on equity of 3.44%. Alcoa’s quarterly revenue was down 10.2% on a year-over-year basis. During the same period last year, the firm earned $0.19 earnings per share. Analysts anticipate that Alcoa will post $0.44 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 25th. Stockholders of record on Friday, November 4th will be paid a $0.03 dividend. The ex-dividend date is Wednesday, November 2nd. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.19%. Alcoa’s payout ratio is currently -42.86%.
In other Alcoa news, Director Ulrich Schmidt acquired 5,000 shares of the business’s stock in a transaction dated Wednesday, July 20th. The shares were purchased at an average price of $10.40 per share, for a total transaction of $52,000.00. Following the completion of the purchase, the director now directly owns 10,000 shares of the company’s stock, valued at $104,000. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website.
Several hedge funds have recently added to or reduced their stakes in AA. Legal & General Group Plc raised its stake in Alcoa by 3.6% in the first quarter. Legal & General Group Plc now owns 5,817,728 shares of the company’s stock valued at $55,747,000 after buying an additional 200,712 shares in the last quarter. Retirement Systems of Alabama raised its stake in Alcoa by 41.6% in the second quarter. Retirement Systems of Alabama now owns 1,555,399 shares of the company’s stock valued at $14,419,000 after buying an additional 457,196 shares in the last quarter. Orbis Allan Gray Ltd purchased a new stake in Alcoa during the first quarter valued at approximately $374,584,000. Geode Capital Management LLC raised its stake in Alcoa by 2.3% in the first quarter. Geode Capital Management LLC now owns 10,720,212 shares of the company’s stock valued at $102,493,000 after buying an additional 240,383 shares in the last quarter. Finally, FDO Partners LLC purchased a new stake in Alcoa during the first quarter valued at approximately $410,000.
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.
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