Zacks Investment Research upgraded shares of Alcoa Inc. (NYSE:AA) from a hold rating to a buy rating in a research report sent to investors on Tuesday morning. They currently have $11.00 target price on the stock.
According to Zacks, “Estimates for Alcoa have been stable lately ahead of its third-quarter 2016 earnings release. The company has a positive record of earnings surprises in recent quarters. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Favorable demand trends across aerospace and automotive markets and recent major contract wins (including Embraer and Boeing deals) are also expected to support its results.”
Several other analysts also recently weighed in on AA. JPMorgan Chase & Co. restated a hold rating on shares of Alcoa in a research note on Tuesday, July 12th. BMO Capital Markets restated a hold rating and issued a $9.00 price target on shares of Alcoa in a research note on Tuesday, July 12th. Rosenblatt Securities restated a buy rating and issued a $15.00 price target on shares of Alcoa in a research note on Wednesday, June 15th. Macquarie restated a buy rating on shares of Alcoa in a research note on Tuesday, July 12th. Finally, Bank of America Corp. restated a buy rating on shares of Alcoa in a research note on Thursday, June 30th. Nine analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. The stock currently has an average rating of Buy and a consensus price target of $11.10.
Shares of Alcoa (NYSE:AA) opened at 31.78 on Tuesday. The firm has a 50 day moving average price of $29.91 and a 200 day moving average price of $29.81. The company’s market capitalization is $41.80 billion. Alcoa has a 52 week low of $18.42 and a 52 week high of $34.50.
Alcoa (NYSE:AA) last posted its earnings results on Monday, July 11th. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.06. Alcoa had a positive return on equity of 3.44% and a negative net margin of 1.45%. The firm had revenue of $5.30 billion for the quarter. During the same quarter last year, the company posted $0.19 EPS. The firm’s revenue was down 10.2% on a year-over-year basis. Equities analysts forecast that Alcoa will post $0.44 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, November 25th. Shareholders of record on Friday, November 4th will be paid a $0.03 dividend. The ex-dividend date is Wednesday, November 2nd. This represents a $0.12 dividend on an annualized basis and a yield of 0.38%. Alcoa’s payout ratio is presently -42.86%.
In other Alcoa news, Director Ulrich Schmidt purchased 5,000 shares of the business’s stock in a transaction on Wednesday, July 20th. The stock was acquired at an average price of $10.40 per share, for a total transaction of $52,000.00. Following the purchase, the director now owns 10,000 shares of the company’s stock, valued at approximately $104,000. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
A number of large investors have recently modified their holdings of the company. Orbis Allan Gray Ltd acquired a new stake in shares of Alcoa during the first quarter worth about $374,584,000. First Pacific Advisors LLC raised its stake in shares of Alcoa by 13.5% in the second quarter. First Pacific Advisors LLC now owns 64,456,242 shares of the company’s stock worth $597,509,000 after buying an additional 7,650,380 shares during the last quarter. Slate Path Capital LP acquired a new stake in shares of Alcoa during the second quarter worth about $65,261,000. Systematic Financial Management LP acquired a new stake in shares of Alcoa during the second quarter worth about $43,763,000. Finally, Vanguard Group Inc. raised its stake in shares of Alcoa by 2.9% in the second quarter. Vanguard Group Inc. now owns 118,489,630 shares of the company’s stock worth $1,098,398,000 after buying an additional 3,387,829 shares during the last quarter.
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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