Alcoa (NYSE:AA) Shares Down 2.9% – What’s Next?

Alcoa Co. (NYSE:AA)’s share price dropped 2.9% during mid-day trading on Friday . The company traded as low as $36.80 and last traded at $36.89. Approximately 357,715 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 1,431,005 shares. The stock had previously closed at $37.99.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on AA. StockNews.com upgraded shares of Alcoa from a “sell” rating to a “hold” rating in a research note on Thursday, October 17th. JPMorgan Chase & Co. raised their price target on Alcoa from $36.00 to $39.00 and gave the stock a “neutral” rating in a report on Thursday, October 17th. B. Riley upgraded Alcoa from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $41.00 to $50.00 in a research note on Thursday, October 17th. B. Riley Financial reiterated a “neutral” rating and issued a $41.00 target price on shares of Alcoa in a research note on Tuesday, September 17th. Finally, Argus upgraded shares of Alcoa from a “hold” rating to a “buy” rating and set a $48.00 price target for the company in a research report on Wednesday, October 23rd. Four equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, Alcoa presently has an average rating of “Moderate Buy” and a consensus target price of $46.73.

Alcoa Stock Down 6.0 %

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.41 and a quick ratio of 0.80. The firm has a market capitalization of $9.23 billion, a P/E ratio of -20.29, a PEG ratio of 0.79 and a beta of 2.47. The firm’s fifty day moving average price is $41.76 and its 200-day moving average price is $37.95.

Alcoa (NYSE:AA) last issued its quarterly earnings results on Wednesday, October 16th. The industrial products company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.34. The company had revenue of $2.90 billion for the quarter, compared to analysts’ expectations of $2.97 billion. Alcoa had a negative return on equity of 1.45% and a negative net margin of 2.65%. The firm’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same period last year, the firm earned ($1.14) EPS. As a group, equities research analysts forecast that Alcoa Co. will post 0.9 earnings per share for the current year.

Alcoa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Stockholders of record on Tuesday, October 29th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, October 29th. This represents a $0.40 annualized dividend and a dividend yield of 1.12%. Alcoa’s dividend payout ratio (DPR) is -22.73%.

Insider Buying and Selling

In other news, EVP Renato Bacchi sold 23,867 shares of the firm’s stock in a transaction on Tuesday, October 22nd. The stock was sold at an average price of $42.29, for a total transaction of $1,009,335.43. Following the completion of the sale, the executive vice president now directly owns 57,317 shares of the company’s stock, valued at $2,423,935.93. This trade represents a 29.40 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Alcoa

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Natixis Advisors LLC acquired a new position in Alcoa in the 2nd quarter worth approximately $787,000. Arizona State Retirement System grew its holdings in shares of Alcoa by 2.5% during the second quarter. Arizona State Retirement System now owns 50,268 shares of the industrial products company’s stock valued at $2,000,000 after buying an additional 1,220 shares in the last quarter. Los Angeles Capital Management LLC raised its position in Alcoa by 407.8% during the second quarter. Los Angeles Capital Management LLC now owns 31,629 shares of the industrial products company’s stock valued at $1,258,000 after buying an additional 25,400 shares during the period. Choreo LLC lifted its stake in Alcoa by 18.9% in the 2nd quarter. Choreo LLC now owns 28,922 shares of the industrial products company’s stock worth $1,148,000 after acquiring an additional 4,605 shares in the last quarter. Finally, Texas Permanent School Fund Corp boosted its position in Alcoa by 5.1% during the 2nd quarter. Texas Permanent School Fund Corp now owns 164,232 shares of the industrial products company’s stock worth $6,533,000 after acquiring an additional 8,035 shares during the period. Institutional investors and hedge funds own 82.39% of the company’s stock.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.