Alcoa Co. (NYSE:AA) Declares Quarterly Dividend of $0.10

Alcoa Co. (NYSE:AA) declared a quarterly dividend on Thursday, May 9th, RTT News reports. Stockholders of record on Tuesday, May 21st will be paid a dividend of 0.10 per share by the industrial products company on Friday, June 7th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.07%.

Alcoa has a payout ratio of 19.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Alcoa to earn $2.16 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 18.5%.

Alcoa Stock Up 1.9 %

Shares of NYSE AA opened at $37.35 on Friday. Alcoa has a 52-week low of $23.07 and a 52-week high of $38.20. The firm has a market capitalization of $6.71 billion, a price-to-earnings ratio of -9.93, a PEG ratio of 3.77 and a beta of 2.45. The stock has a 50 day moving average price of $33.79 and a 200 day moving average price of $30.00. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.93 and a current ratio of 1.61.

Alcoa (NYSE:AA) last issued its earnings results on Wednesday, April 17th. The industrial products company reported ($0.81) earnings per share for the quarter, missing the consensus estimate of ($0.62) by ($0.19). Alcoa had a negative return on equity of 8.51% and a negative net margin of 6.41%. The firm had revenue of $2.60 billion during the quarter, compared to analysts’ expectations of $2.55 billion. Alcoa’s quarterly revenue was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.23) earnings per share. Sell-side analysts expect that Alcoa will post 0.2 earnings per share for the current year.

Insider Buying and Selling at Alcoa

In related news, EVP Tammi A. Jones sold 26,468 shares of Alcoa stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $30.78, for a total value of $814,685.04. Following the sale, the executive vice president now directly owns 41,166 shares in the company, valued at approximately $1,267,089.48. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 1.08% of the company’s stock.

Analyst Ratings Changes

Several analysts have commented on the stock. BMO Capital Markets increased their price target on shares of Alcoa from $35.00 to $37.00 and gave the company a “market perform” rating in a research report on Thursday, April 18th. Morgan Stanley raised shares of Alcoa from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $28.50 to $36.50 in a research report on Monday, April 22nd. JPMorgan Chase & Co. increased their price target on shares of Alcoa from $30.00 to $32.00 and gave the stock a “neutral” rating in a report on Thursday, January 18th. Bank of America raised their target price on shares of Alcoa from $31.00 to $32.00 and gave the stock a “neutral” rating in a report on Monday, March 18th. Finally, Jefferies Financial Group lifted their price objective on Alcoa from $45.00 to $48.00 and gave the company a “buy” rating in a research note on Thursday, April 18th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $33.54.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.