Alcoa (NYSE:AA) Issues Quarterly Earnings Results

Alcoa (NYSE:AA) released its quarterly earnings data on Thursday. The industrial products company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.51 by $0.31, FiscalAI reports. The business had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.77 billion. Alcoa had a net margin of 9.48% and a return on equity of 18.90%.

Alcoa Price Performance

NYSE:AA traded up $0.22 during trading hours on Thursday, hitting $40.30. The stock had a trading volume of 7,901,068 shares, compared to its average volume of 5,846,438. The company has a 50 day simple moving average of $47.24 and a two-hundred day simple moving average of $56.27. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92. Alcoa has a one year low of $35.12 and a one year high of $84.38. The firm has a market capitalization of $10.63 billion, a price-to-earnings ratio of 8.29, a P/E/G ratio of 0.51 and a beta of 1.74.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were paid a $0.10 dividend. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 annualized dividend and a yield of 1.0%. Alcoa’s dividend payout ratio is currently 8.23%.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Barclays begins coverage with an Overweight rating. The new $55 target signals confidence in Alcoa’s valuation and potential for earnings growth, helping offset investor caution ahead of results. Barclays initiates coverage of Alcoa with overweight rating
• Positive Sentiment: South32 shareholders approved the proposed sale of its aluminum and alumina assets to Alcoa. The approximately $8 billion transaction would expand Alcoa’s operating footprint and could improve scale and strategic positioning in the aluminum market, although completion remains subject to additional conditions. South32 shareholders back board changes and Alcoa asset sale at AGM
• Neutral Sentiment: Investors are focused on Alcoa’s upcoming third-quarter earnings. Analysts expect year-over-year revenue and earnings growth, supported by aluminum sales and smelter restarts. Options markets are also pricing a potentially meaningful post-earnings move, indicating elevated uncertainty. Alcoa gears up to post Q3 earnings
• Negative Sentiment: Alumina weakness and rising costs remain risks to the earnings outlook. These pressures could limit margin expansion or cause results and guidance to fall short of elevated investor expectations, particularly if aluminum prices or restart benefits disappoint. Alcoa earnings preview

Analyst Ratings Changes

Several analysts have recently issued reports on AA shares. Wall Street Zen raised shares of Alcoa from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Royal Bank Of Canada set a $70.00 price objective on shares of Alcoa in a report on Wednesday, July 1st. Morgan Stanley reduced their price objective on shares of Alcoa from $53.00 to $50.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 7th. Bank of America reduced their price objective on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating for the company in a research note on Thursday, July 9th. Finally, Barclays started coverage on shares of Alcoa in a report on Wednesday. They set an “overweight” rating and a $55.00 target price on the stock. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $60.54.

Insiders Place Their Bets

In other news, EVP Renato Bacchi sold 700 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $51.02, for a total transaction of $35,714.00. Following the completion of the transaction, the executive vice president directly owned 74,930 shares in the company, valued at $3,822,928.60. The trade was a 0.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Tammi Jones sold 15,628 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the completion of the transaction, the executive vice president directly owned 39,819 shares in the company, valued at approximately $2,014,841.40. The trade was a 28.19% decrease in their position. The SEC filing for this sale provides additional information.

Alcoa Company Profile

Alcoa Corporation (NYSE:AA) is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.