Alcoa (NYSE:AA) Stock Rating Raised to Strong-Buy at Barclays

Barclays upgraded shares of Alcoa (NYSE:AA) to a strong-buy rating in a research note released on Wednesday,Zacks reports.

Several other analysts also recently weighed in on the company. Wall Street Zen upgraded Alcoa from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Bank of America dropped their target price on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating on the stock in a report on Thursday, July 9th. Wells Fargo & Company cut their target price on shares of Alcoa from $71.00 to $60.00 and set an “overweight” rating on the stock in a research report on Friday, September 18th. JPMorgan Chase & Co. reduced their price target on shares of Alcoa from $52.00 to $50.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Finally, Royal Bank Of Canada set a $70.00 price target on shares of Alcoa in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Alcoa currently has a consensus rating of “Moderate Buy” and a consensus target price of $60.54.

Alcoa Trading Down 3.6%

AA opened at $39.98 on Wednesday. The stock’s fifty day moving average is $47.24 and its two-hundred day moving average is $56.27. The company has a market capitalization of $10.55 billion, a P/E ratio of 8.23, a PEG ratio of 0.51 and a beta of 1.74. Alcoa has a 52 week low of $35.12 and a 52 week high of $84.38. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30.

Alcoa (NYSE:AA) last issued its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing the consensus estimate of $2.25 by ($0.13). Alcoa had a return on equity of 18.90% and a net margin of 9.48%. The firm had revenue of $3.97 billion during the quarter, compared to analysts’ expectations of $3.99 billion. During the same quarter in the prior year, the company posted $0.39 earnings per share. Analysts forecast that Alcoa will post 6.69 earnings per share for the current year.

Alcoa Announces Dividend

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

Insider Activity at Alcoa

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

Institutional Investors Weigh In On Alcoa

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AA. Checchi Capital Advisers LLC boosted its holdings in Alcoa by 3.4% in the first quarter. Checchi Capital Advisers LLC now owns 5,138 shares of the industrial products company’s stock valued at $341,000 after purchasing an additional 170 shares during the last quarter. Essential Partners LLC grew its position in Alcoa by 0.9% during the 1st quarter. Essential Partners LLC now owns 20,525 shares of the industrial products company’s stock worth $1,361,000 after purchasing an additional 193 shares during the period. Himension Capital Singapore PTE. LTD. grew its position in Alcoa by 1.3% during the 1st quarter. Himension Capital Singapore PTE. LTD. now owns 18,626 shares of the industrial products company’s stock worth $1,235,000 after purchasing an additional 246 shares during the period. Sage Rhino Capital LLC raised its stake in shares of Alcoa by 7.0% during the 1st quarter. Sage Rhino Capital LLC now owns 4,276 shares of the industrial products company’s stock valued at $284,000 after buying an additional 279 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. raised its stake in shares of Alcoa by 4.6% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,373 shares of the industrial products company’s stock valued at $332,000 after buying an additional 282 shares during the last quarter.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: South32 shareholders approved the proposed sale of the company’s aluminum and alumina assets to Alcoa. The roughly $8 billion transaction would expand Alcoa’s upstream portfolio and could strengthen its position across the aluminum supply chain, although completion remains subject to closing conditions. South32 shareholders back board changes and Alcoa asset sale at AGM
• Positive Sentiment: Barclays initiated coverage of Alcoa with an Overweight rating, providing a new bullish analyst signal for the stock. Barclays initiates coverage of Alcoa with overweight rating
• Positive Sentiment: Analysts expect year-over-year revenue and earnings growth in the third quarter, supported by aluminum sales and restarted smelter capacity. Stronger aluminum volumes and production could improve near-term results. Alcoa Gears Up to Post Q3 Earnings

About Alcoa

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.