Investors Buy Shares of Alcoa Inc. (AA) on Weakness on Analyst Downgrade
Traders purchased shares of Alcoa Inc. (NYSE:AA) on weakness during trading hours on Wednesday after Zacks Investment Research downgraded the stock from a buy rating to a hold rating. $133.15 million flowed into the stock on the tick-up and $85.80 million flowed out of the stock on the tick-down, for a money net flow of $47.35 million into the stock. Of all equities tracked, Alcoa had the 14th highest net in-flow for the day. Alcoa traded down ($0.80) for the day and closed at $27.11
Several other equities analysts have also recently weighed in on the stock. Morgan Stanley reaffirmed a “buy” rating and issued a $12.00 price target on shares of Alcoa in a research report on Tuesday, August 16th. Credit Suisse Group AG reaffirmed a “buy” rating on shares of Alcoa in a research report on Tuesday, July 12th. Berenberg Bank reaffirmed a “hold” rating and issued a $9.00 price target on shares of Alcoa in a research report on Thursday, June 30th. Bank of America Corp. reaffirmed a “buy” rating on shares of Alcoa in a research report on Friday, June 17th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $15.00 price target on shares of Alcoa in a research report on Friday, July 15th. Eleven analysts have rated the stock with a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $17.74.
In related news, Director Ulrich Schmidt acquired 5,000 shares of the company’s stock in a transaction dated Wednesday, July 20th. The stock was bought at an average cost of $10.40 per share, with a total value of $52,000.00. Following the acquisition, the director now owns 10,000 shares of the company’s stock, valued at approximately $104,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
Several hedge funds have recently bought and sold shares of the company. Cupps Capital Management LLC bought a new stake in Alcoa during the first quarter worth about $109,000. Citizens Financial Group Inc RI boosted its position in shares of 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. AXA acquired a new position in shares of Alcoa during the first quarter worth approximately $115,000. QUANTRES ASSET MANAGEMENT Ltd acquired a new position in shares of Alcoa during the second quarter worth approximately $121,000. Finally, Savant Capital LLC boosted its position in shares of 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.
The firm’s market cap is $11.73 billion. The company has a 50-day moving average price of $29.62 and a 200 day moving average price of $29.80.
Alcoa (NYSE:AA) last announced its earnings results on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, beating the Zacks’ 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 business earned $5.21 billion during the quarter. During the same period in the prior year, the company posted $0.07 earnings per share. The firm’s quarterly revenue was down 6.5% on a year-over-year basis. On average, equities analysts forecast that Alcoa Inc. will post $0.44 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 25th. Stockholders 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 dividend yield of 0.45%. Alcoa’s dividend payout ratio (DPR) is presently -63.15%.
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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