Kaiser Aluminum (NASDAQ:KALU) Stock Gets Price Target Reduction from Wells Fargo & Company

Kaiser Aluminum (NASDAQ:KALU) had its price objective lowered by Wells Fargo & Company from $160.00 to $125.00 in a research report report published on Friday morning,Benzinga reports. The brokerage currently has an equal weight rating on the industrial products company’s stock.

Several other equities research analysts have also commented on the stock. Wall Street Zen upgraded shares of Kaiser Aluminum from a “buy” rating to a “strong-buy” rating in a research report on Sunday, August 2nd. Weiss Ratings cut shares of Kaiser Aluminum from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, September 2nd. Zacks Research downgraded shares of Kaiser Aluminum from a “strong-buy” rating to a “hold” rating in a report on Friday, September 25th. KeyCorp reduced their price objective on shares of Kaiser Aluminum from $183.00 to $181.00 and set an “overweight” rating for the company in a research note on Thursday, October 8th. Finally, Barclays started coverage on shares of Kaiser Aluminum in a report on Wednesday, October 14th. They set an “overweight” rating and a $180.00 price objective on the stock. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $162.40.

Kaiser Aluminum Price Performance

KALU opened at $107.28 on Friday. The company has a debt-to-equity ratio of 1.06, a current ratio of 2.63 and a quick ratio of 1.25. Kaiser Aluminum has a 12 month low of $87.89 and a 12 month high of $199.89. The stock has a market capitalization of $1.75 billion, a P/E ratio of 8.28 and a beta of 1.59. The business has a 50 day simple moving average of $153.33 and a 200-day simple moving average of $165.07.

Kaiser Aluminum (NASDAQ:KALU) last announced its quarterly earnings data on Wednesday, October 21st. The industrial products company reported $1.89 earnings per share for the quarter, missing analysts’ consensus estimates of $2.37 by ($0.48). The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. Kaiser Aluminum had a return on equity of 23.65% and a net margin of 4.85%. The company’s revenue was up 43.9% on a year-over-year basis. During the same period in the prior year, the company earned $1.86 EPS. On average, equities analysts anticipate that Kaiser Aluminum will post 13.40 earnings per share for the current fiscal year.

Kaiser Aluminum Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 23rd will be paid a $0.77 dividend. This represents a $3.08 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Friday, October 23rd. Kaiser Aluminum’s dividend payout ratio (DPR) is presently 23.78%.

Hedge Funds Weigh In On Kaiser Aluminum

Hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp acquired a new stake in Kaiser Aluminum in the second quarter valued at $38,353,000. Assenagon Asset Management S.A. bought a new position in Kaiser Aluminum during the 2nd quarter valued at $10,659,000. Great Lakes Advisors LLC acquired a new position in Kaiser Aluminum during the 2nd quarter worth $8,045,000. Renaissance Technologies LLC grew its holdings in Kaiser Aluminum by 363.2% during the 1st quarter. Renaissance Technologies LLC now owns 33,814 shares of the industrial products company’s stock worth $4,075,000 after acquiring an additional 26,514 shares in the last quarter. Finally, Principal Financial Group Inc. increased its position in shares of Kaiser Aluminum by 32.4% in the 1st quarter. Principal Financial Group Inc. now owns 101,510 shares of the industrial products company’s stock worth $12,233,000 after purchasing an additional 24,853 shares during the last quarter. 99.29% of the stock is currently owned by hedge funds and other institutional investors.

Kaiser Aluminum News Summary

Here are the key news stories impacting Kaiser Aluminum this week:

• Positive Sentiment: Management highlighted stronger aerospace demand, rising cash flow and better visibility into 2027. These trends could support future revenue growth and profitability as current operational issues are addressed. KALU Q3 Earnings Call Highlights Demand Strength and Margin Pressure
• Positive Sentiment: An analysis argues that Kaiser Aluminum shares could be approximately 43% undervalued, offering potential upside if earnings improve and the company executes on its longer-term growth plans. Kaiser Aluminum Stock Could Be 43% Undervalued As CEO Transition Looms
• Neutral Sentiment: Kaiser reported third-quarter revenue of approximately $1.21 billion, up 43.9% year over year, while adjusted earnings increased to $1.89 per share from $1.86 a year earlier. Revenue growth is encouraging, but profitability did not meet expectations. Kaiser Aluminum Q3 Adjusted Earnings and Revenue Rise
• Negative Sentiment: Third-quarter EPS of $1.89 missed the Zacks consensus estimate of $2.08, reinforcing concerns that higher metal costs and operational disruptions are squeezing margins despite solid demand. Kaiser Aluminum Misses Q3 Earnings Estimates
• Negative Sentiment: Wells Fargo lowered its price target from $160 to $125 and maintained an “equal weight” rating. The reduced target signals less near-term confidence, while the pending CEO transition adds execution uncertainty. Wells Fargo Kaiser Aluminum Analyst Action

Kaiser Aluminum Company Profile

Kaiser Aluminum Corporation is a producer of semi-fabricated aluminum products used by manufacturers in the aerospace and defense, automotive, industrial, and consumer products markets. The company supplies aluminum materials designed for applications that require strength, light weight, corrosion resistance, and other specialized performance characteristics.

Its product portfolio includes rolled aluminum sheet and plate, extruded products, forged components, and other fabricated aluminum products.