Alcoa Inc. (AA) Rating Lowered to Hold at Zacks Investment Research
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.”
A number of other research analysts also recently commented on the company. Morgan Stanley reissued a buy rating and issued a $12.00 price target on shares of Alcoa in a report on Tuesday, August 16th. Credit Suisse Group AG reaffirmed a buy rating on shares of Alcoa in a report on Tuesday, July 12th. Berenberg Bank reaffirmed a hold rating and set a $9.00 target price on shares of Alcoa in a report on Thursday, June 30th. Bank of America Corp. reaffirmed a buy rating on shares of Alcoa in a report on Friday, June 17th. Finally, Rosenblatt Securities reaffirmed a buy rating and set a $15.00 target price on shares of Alcoa in a report on Friday, July 15th. Eleven investment 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. The company currently has a consensus rating of Buy and a consensus price target of $17.74.
Alcoa (NYSE:AA) opened at 26.51 on Thursday. The stock has a 50 day moving average price of $29.28 and a 200-day moving average price of $29.76. Alcoa has a 12-month low of $18.42 and a 12-month high of $34.50. The firm’s market cap is $11.62 billion.
Alcoa (NYSE:AA) last issued its quarterly earnings results on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.21. The firm earned $5.21 billion during the quarter. Alcoa had a positive return on equity of 3.87% and a negative net margin of 0.88%. The company’s revenue for the quarter was down 6.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 EPS. Equities analysts forecast that Alcoa will post $0.44 earnings per share for the current year.
The business 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 dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 0.45%. The ex-dividend date of this dividend is Wednesday, November 2nd. Alcoa’s dividend payout ratio is presently -63.15%.
Several large investors have recently added to or reduced their stakes in the company. FNY Managed Accounts LLC bought a new stake in Alcoa during the third quarter valued at $101,000. Cupps Capital Management LLC acquired a new stake in shares of Alcoa during the first quarter valued at approximately $109,000. Citizens Financial Group Inc RI boosted its stake 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 valued at $109,000 after buying an additional 1,401 shares during the period. AXA acquired a new stake in shares of Alcoa during the first quarter valued at approximately $115,000. Finally, QUANTRES ASSET MANAGEMENT Ltd acquired a new stake in shares of Alcoa during the second quarter valued at approximately $121,000.
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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