Alcoa Inc. (NYSE:AA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Alcoa’s revenues and adjusted earnings for third-quarter 2016 missed the respective Zacks Consensus Estimate. Lower alumina prices dragged down its sales in the quarter. Alcoa remains on track to complete its business separation. The company should gain from its aggressive cost-cutting and productivity actions. Recent major contract wins (including Embraer and Boeing deals) in aerospace are also expected to support its results. However, weak metals pricing may continue to hurt Alcoa’s revenues. The company's downstream business is also seeing sustained pricing pressure. Moreover, Alcoa is exposed to weakness in the heavy duty truck and trailer market in North America and building and construction market in Europe.”
AA has been the subject of a number of other research reports. Argus reissued a “hold” rating on shares of Alcoa in a research note on Friday, July 15th. Morgan Stanley reissued a “buy” rating and set a $12.00 target price on shares of Alcoa in a research note on Tuesday, August 16th. Bank of America Corp. downgraded shares of Alcoa from a “buy” rating to a “neutral” rating in a research note on Tuesday, October 11th. Seaport Global Securities assumed coverage on shares of Alcoa in a research note on Friday, September 9th. They set a “neutral” rating and a $11.00 target price for the company. Finally, RBC Capital Markets reissued a “sector perform” rating and set a $31.00 target price (down previously from $33.00) on shares of Alcoa in a research note on Wednesday, October 12th. Eleven analysts have rated the stock with a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and an average price target of $17.74.
Alcoa (NYSE:AA) opened at 26.44 on Thursday. Alcoa has a 1-year low of $18.42 and a 1-year high of $34.50. The stock’s 50 day moving average is $29.51 and its 200-day moving average is $29.79. The firm’s market capitalization is $11.59 billion.
Alcoa (NYSE:AA) last released its quarterly earnings results on Tuesday, October 11th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.11 by $0.21. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The firm earned $5.21 billion during the quarter. During the same period in the previous year, the business posted $0.07 EPS. Alcoa’s revenue was down 6.5% on a year-over-year basis. Analysts forecast that Alcoa will post $0.44 EPS for the current year.
The business also recently announced 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. This represents a $0.12 dividend on an annualized basis and a yield of 0.45%. The ex-dividend date of this dividend is Wednesday, November 2nd. Alcoa’s payout ratio is -63.15%.
In related news, Director Ulrich Schmidt bought 5,000 shares of the company’s stock in a transaction on Wednesday, July 20th. The shares were purchased at an average cost of $10.40 per share, for a total transaction of $52,000.00. Following the completion of the purchase, the director now directly owns 10,000 shares in the company, valued at $104,000. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AA. Citizens Financial Group Inc RI boosted its position in Alcoa by 14.1% in the first quarter. Citizens Financial Group Inc RI now owns 11,349 shares of the company’s stock worth $109,000 after buying an additional 1,401 shares during the last quarter. Cupps Capital Management LLC bought a new position in Alcoa during the first quarter worth $109,000. AXA bought a new position in Alcoa during the first quarter worth $115,000. QUANTRES ASSET MANAGEMENT Ltd bought a new position in Alcoa during the second quarter worth $121,000. Finally, Savant Capital LLC boosted its position in Alcoa by 21.9% in the second quarter. Savant Capital LLC now owns 13,125 shares of the company’s stock worth $122,000 after buying an additional 2,360 shares during the last quarter.
Alcoa Company Profile
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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