Alcoa Inc. (AA) Sees Large Volume Increase After Strong Earnings
Alcoa Inc. (NYSE:AA) saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 12,185,891 shares traded hands during mid-day trading, an increase of 38% from the previous session’s volume of 8,855,381 shares.The stock last traded at $27.06 and had previously closed at $27.91.
The company reported $0.32 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.21. Alcoa had a positive return on equity of 3.44% and a negative net margin of 1.45%. The business earned $5.21 billion during the quarter. During the same period in the prior year, the firm earned $0.07 earnings per share. The business’s quarterly revenue was down 6.5% compared to the same quarter last year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Investors of record on Friday, November 4th will be issued 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 0.44%. Alcoa’s dividend payout ratio is -42.85%.
AA has been the subject of a number of research analyst reports. Zacks Investment Research raised Alcoa from a “hold” rating to a “buy” rating and set a $11.00 price target for the company in a report on Tuesday, October 4th. Morgan Stanley reaffirmed an “overweight” rating and issued a $12.00 price target on shares of Alcoa in a report on Wednesday, October 5th. Bank of America Corp. cut Alcoa from a “buy” rating to a “neutral” rating in a report on Tuesday. Seaport Global Securities initiated coverage on Alcoa in a report on Friday, September 9th. They issued a “neutral” rating and a $11.00 price target for the company. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $15.00 price target on shares of Alcoa in a report on Friday, July 15th. Ten analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $16.83.
In other news, Director Ulrich Schmidt bought 5,000 shares of the business’s stock in a transaction on 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 purchase, the director now owns 10,000 shares of the company’s stock, valued at approximately $104,000. The purchase was disclosed in a filing with the SEC, which is available through the SEC website.
A number of large investors have recently added to or reduced their stakes in the stock. 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 during 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 during 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 during 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 during 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 during the last quarter.
The company’s 50 day moving average is $29.71 and its 200-day moving average is $29.83. The stock’s market cap is $11.89 billion.
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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