Alcoa (NYSE:AA) Trading Down 4.8% – What’s Next?

Alcoa (NYSE:AA) shares traded down 4.8% during mid-day trading on Wednesday . The company traded as low as $69.15 and last traded at $68.9060. 668,368 shares were traded during trading, a decline of 89% from the average session volume of 6,321,800 shares. The stock had previously closed at $72.41.

Alcoa News Roundup

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Morgan Stanley said the recent pullback in AA looks “overdone,” suggesting the market may have overreacted to the revised guidance and that the stock could stabilize if losses prove temporary. Alcoa Pullback On Revised Second-Quarter Guidance ‘Overdone,’ Morgan Stanley Says
• Positive Sentiment: Alcoa and the Port of Trois Rivières inaugurated new port facilities for raw-material handling at the Deschambault Smelter, a longer-term operational improvement that could support logistics efficiency. Alcoa and the Port of Trois Rivières inaugurate new port facilities dedicated to unloading raw materials for the Deschambault Smelter
• Neutral Sentiment: Alcoa presented at the Wells Fargo Industrials & Materials Conference, but the event itself did not include a clearly new operational update that would materially change the stock’s near-term outlook. Alcoa Corporation (AA) Presents at 16th Annual Wells Fargo Industrials & Materials Conference – Slideshow
• Negative Sentiment: Alcoa warned that its alumina unit is effectively “underwater,” with losses tied to energy disruptions and elevated geopolitical risk, reinforcing concerns that profitability may weaken in the near term. Alcoa Shares Drop as Firm Warns Alumina Unit Is ‘Underwater’
• Negative Sentiment: Benchmark aluminum prices retreated, and broader metals weakness added pressure to sentiment around commodity producers like AA, making investors more cautious ahead of the company’s update. Alcoa and the Port of Trois Rivières inaugurate new port facilities dedicated to unloading raw materials for the Deschambault Smelter

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Wells Fargo & Company set a $68.00 target price on Alcoa in a report on Thursday, March 12th. JPMorgan Chase & Co. raised their target price on Alcoa from $68.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, April 9th. UBS Group upgraded Alcoa from a “neutral” rating to a “buy” rating and raised their target price for the stock from $75.00 to $80.00 in a report on Friday, May 22nd. Zacks Research cut Alcoa from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Finally, Argus set a $73.00 target price on Alcoa in a report on Monday, April 27th. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $68.50.

Alcoa Price Performance

The company has a current ratio of 1.48, a quick ratio of 0.88 and a debt-to-equity ratio of 0.36. The firm has a market cap of $18.23 billion, a P/E ratio of 17.48 and a beta of 1.56. The company has a fifty day moving average price of $69.50 and a two-hundred day moving average price of $61.28.

Alcoa (NYSE:AA) last released its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The business had revenue of $3.19 billion for the quarter, compared to the consensus estimate of $3.35 billion. During the same quarter last year, the firm earned $2.15 EPS. The company’s revenue for the quarter was down 5.2% on a year-over-year basis. Equities analysts anticipate that Alcoa will post 7.95 earnings per share for the current year.

Alcoa Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Tuesday, May 19th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Tuesday, May 19th. Alcoa’s payout ratio is 10.13%.

Hedge Funds Weigh In On Alcoa

Several institutional investors have recently modified their holdings of the business. Nordea Investment Management AB raised its position in Alcoa by 187.7% in the 4th quarter. Nordea Investment Management AB now owns 408,624 shares of the industrial products company’s stock valued at $21,902,000 after buying an additional 266,574 shares during the last quarter. Moran Wealth Management LLC acquired a new stake in Alcoa in the 4th quarter valued at approximately $2,631,000. Lighthouse Investment Partners LLC acquired a new stake in Alcoa in the 3rd quarter valued at approximately $5,606,000. Regal Partners Ltd raised its position in Alcoa by 7.0% in the 3rd quarter. Regal Partners Ltd now owns 451,940 shares of the industrial products company’s stock valued at $14,864,000 after buying an additional 29,612 shares during the last quarter. Finally, Alphadyne Asset Management LP acquired a new stake in Alcoa in the 3rd quarter valued at approximately $2,467,000.

About Alcoa

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.