Alcoa Inc. (AA) Downgraded by Zacks Investment Research
Alcoa Inc. (NYSE:AA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research 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.”
Several other research firms have also recently commented on AA. Macquarie reaffirmed a “buy” rating on shares of Alcoa in a research note on Tuesday, July 12th. Credit Suisse Group AG reaffirmed a “buy” rating on shares of Alcoa in a research note on Thursday, June 30th. BMO Capital Markets reiterated a “hold” rating and issued a $9.00 price target on shares of Alcoa in a report on Tuesday, July 12th. Royal Bank Of Canada decreased their price target on shares of Alcoa to $31.00 and set a “sector perform” rating on the stock in a report on Wednesday. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $15.00 price target on shares of Alcoa in a report on Friday, July 15th. Eleven 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 presently has an average rating of “Buy” and a consensus price target of $17.74.
Alcoa (NYSE:AA) opened at 27.11 on Thursday. The company has a 50-day moving average price of $29.71 and a 200 day moving average price of $29.83. Alcoa has a 12-month low of $18.42 and a 12-month high of $34.50. The stock’s market cap is $11.89 billion.
Alcoa (NYSE:AA) last released its earnings results on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.11 by $0.21. The firm earned $5.21 billion during the quarter. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The firm’s revenue was down 6.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.07 earnings per share. On average, equities research analysts predict that Alcoa will post $0.44 EPS for the current year.
The firm 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. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.44%. The ex-dividend date is Wednesday, November 2nd. Alcoa’s dividend payout ratio is presently -63.15%.
In other Alcoa news, Director Ulrich Schmidt acquired 5,000 shares of the 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 transaction, the director now directly owns 10,000 shares in the company, valued at $104,000. The acquisition was disclosed in a document filed with the SEC, which is available through this link.
Hedge funds and other institutional investors have recently bought and sold shares of the company. CIBC World Markets Inc. purchased a new position in Alcoa during the first quarter valued at approximately $278,000. Ngam Advisors L.P. boosted its position in Alcoa by 16.6% in the first quarter. Ngam Advisors L.P. now owns 157,575 shares of the company’s stock valued at $1,510,000 after buying an additional 22,423 shares during the period. NN Investment Partners Holdings N.V. purchased a new position in Alcoa during the first quarter valued at approximately $823,000. Brookfield Asset Management Inc. boosted its position in Alcoa by 6.0% in the first quarter. Brookfield Asset Management Inc. now owns 33,322 shares of the company’s stock valued at $319,000 after buying an additional 1,900 shares during the period. Finally, M&T Bank Corp boosted its position in Alcoa by 89.6% in the first quarter. M&T Bank Corp now owns 91,300 shares of the company’s stock valued at $875,000 after buying an additional 43,139 shares during the period.
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.
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