Investors Buy Shares of Alcoa Inc. (AA) on Weakness Following Analyst Downgrade
Traders purchased shares of Alcoa Inc. (NYSE:AA) on weakness during trading hours on Wednesday after Deutsche Bank AG lowered their price target on the stock to $33.00. $133.15 million flowed into the stock on the tick-up and $85.80 million flowed out of the stock on the tick-down, for a money net flow of $47.35 million into the stock. Of all stocks tracked, Alcoa had the 14th highest net in-flow for the day. Alcoa traded down ($0.80) for the day and closed at $27.11
A number of other brokerages also recently issued reports on AA. Credit Suisse Group AG set a $39.00 price target on Alcoa and gave the stock a “buy” rating in a research report on Saturday, October 8th. JPMorgan Chase & Co. reiterated a “hold” rating on shares of Alcoa in a research report on Tuesday, July 12th. BMO Capital Markets reiterated a “hold” rating and set a $9.00 price target on shares of Alcoa in a research report on Tuesday, July 12th. Rosenblatt Securities reiterated a “buy” rating and set a $15.00 price target on shares of Alcoa in a research report on Wednesday, June 15th. Finally, Macquarie reiterated a “buy” rating on shares of Alcoa in a research report on Tuesday, July 12th. 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 stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $16.83.
In other news, Director Ulrich Schmidt purchased 5,000 shares of the stock in a transaction dated Wednesday, July 20th. The stock was acquired at an average cost of $10.40 per share, for a total transaction of $52,000.00. Following the completion of the transaction, the director now directly owns 10,000 shares in the company, valued at approximately $104,000. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cupps Capital Management LLC purchased a new position in Alcoa during the first quarter valued at approximately $109,000. Citizens Financial Group Inc RI raised its position in Alcoa by 14.1% in the first quarter. Citizens Financial Group Inc RI now owns 11,349 shares of the company’s stock worth $109,000 after buying an additional 1,401 shares during the period. AXA bought a new position in Alcoa during the first quarter worth about $115,000. QUANTRES ASSET MANAGEMENT Ltd bought a new position in Alcoa during the second quarter worth about $121,000. Finally, Savant Capital LLC raised its position in Alcoa by 21.9% in the second quarter. Savant Capital LLC now owns 13,125 shares of the company’s stock worth $122,000 after buying an additional 2,360 shares during the period.
The company’s market capitalization is $11.89 billion. The stock’s 50-day moving average price is $29.71 and its 200-day moving average price is $29.83.
Alcoa (NYSE:AA) last issued its quarterly earnings data on Tuesday, October 11th. The company reported $0.32 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ 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 firm earned $5.21 billion during the quarter. During the same quarter in the prior year, the firm earned $0.07 earnings per share. The company’s revenue for the quarter was down 6.5% on a year-over-year basis. Equities research analysts anticipate that Alcoa Inc. will post $0.44 EPS for the current year.
The business 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 dividend yield of 0.44%. Alcoa’s dividend payout ratio is currently -42.85%.
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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