Investors Buy Shares of Alcoa Inc. (AA) on Weakness on Analyst Downgrade
Investors purchased shares of Alcoa Inc. (NYSE:AA) on weakness during trading on Thursday after Zacks Investment Research downgraded the stock from a buy rating to a hold rating. $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 6th 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 commented on AA. Goldman Sachs Group Inc. set a $30.00 price objective on shares of Alcoa and gave the company a “hold” rating in a research report on Monday. Credit Suisse Group AG set a $39.00 price objective on shares of Alcoa and gave the company a “buy” rating in a research report on Saturday, October 8th. Bank of America Corp. downgraded shares of Alcoa from a “buy” rating to a “neutral” rating in a research report on Tuesday. Royal Bank Of Canada cut their target price on shares of Alcoa to $31.00 and set a “sector perform” rating for the company in a research note on Wednesday. Finally, Deutsche Bank AG cut their target price on shares of Alcoa to $33.00 and set a “buy” rating for the company in a research note on Wednesday. Eleven investment 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. Alcoa presently has a consensus rating of “Buy” and an average target price of $17.74.
In other Alcoa news, Director Ulrich Schmidt bought 5,000 shares of Alcoa stock in a transaction on Wednesday, July 20th. The shares were purchased at an average cost of $10.40 per share, with a total value of $52,000.00. Following the acquisition, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $104,000. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.
Large investors have recently bought and sold shares of the company. Pictet Asset Management Ltd. raised its stake in Alcoa by 2.7% in the first quarter. Pictet Asset Management Ltd. now owns 686,823 shares of the company’s stock worth $6,133,000 after buying an additional 17,800 shares during the last quarter. Pacific Global Investment Management CO raised its stake in Alcoa by 10.1% in the first quarter. Pacific Global Investment Management CO now owns 177,698 shares of the company’s stock worth $1,702,000 after buying an additional 16,328 shares during the last quarter. Meeder Asset Management Inc. acquired a new stake in Alcoa during the first quarter worth $183,000. Rafferty Asset Management LLC acquired a new stake in Alcoa during the first quarter worth $1,411,000. Finally, Cupps Capital Management LLC acquired a new stake in Alcoa during the first quarter worth $109,000.
The firm’s market cap is $11.73 billion. The firm has a 50 day moving average price of $29.62 and a 200-day moving average price of $29.80.
Alcoa (NYSE:AA) last announced its quarterly earnings results on Tuesday, October 11th. The company reported $0.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.21. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The firm had revenue of $5.21 billion for the quarter. During the same period in the previous year, the company posted $0.07 earnings per share. The company’s quarterly revenue was down 6.5% compared to the same quarter last year. On average, equities research analysts predict that Alcoa Inc. will post $0.44 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Stockholders of record on Friday, November 4th will be issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.45%. The ex-dividend date is Wednesday, November 2nd. Alcoa’s payout ratio is -63.15%.
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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