Alcoa (NYSE:AA) Releases Quarterly Earnings Results, Misses Expectations By $0.19 EPS

Alcoa (NYSE:AA) announced its earnings results on Wednesday. The industrial products company reported ($0.81) EPS for the quarter, missing the consensus estimate of ($0.62) by ($0.19), Briefing.com reports. Alcoa had a negative net margin of 6.17% and a negative return on equity of 6.56%. The company had revenue of $2.60 billion for the quarter, compared to analysts’ expectations of $2.55 billion. During the same period in the prior year, the company earned ($0.23) earnings per share. The company’s revenue for the quarter was down 2.7% on a year-over-year basis.

Alcoa Stock Performance

Shares of AA stock opened at $35.48 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.45 and a quick ratio of 0.74. Alcoa has a fifty-two week low of $23.07 and a fifty-two week high of $42.23. The stock’s 50-day moving average is $30.97 and its two-hundred day moving average is $29.02. The firm has a market cap of $6.37 billion, a P/E ratio of -9.72, a PEG ratio of 2.32 and a beta of 2.47.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 21st. Shareholders of record on Tuesday, March 5th were given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.13%. The ex-dividend date of this dividend was Monday, March 4th. Alcoa’s payout ratio is currently -10.96%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. B. Riley upped their target price on Alcoa from $25.00 to $31.00 and gave the company a “neutral” rating in a report on Thursday. UBS Group started coverage on Alcoa in a research note on Tuesday, January 16th. They issued a “sell” rating and a $29.00 price objective for the company. BMO Capital Markets increased their price objective on Alcoa from $35.00 to $37.00 and gave the stock a “market perform” rating in a research note on Thursday. JPMorgan Chase & Co. increased their price objective on Alcoa from $30.00 to $32.00 and gave the stock a “neutral” rating in a research note on Thursday, January 18th. Finally, Jefferies Financial Group increased their price objective on Alcoa from $45.00 to $48.00 and gave the stock a “buy” rating in a research note on Thursday. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $32.71.

Insiders Place Their Bets

In other Alcoa news, EVP Tammi A. Jones sold 26,468 shares of the company’s stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $30.78, for a total value of $814,685.04. Following the transaction, the executive vice president now directly owns 41,166 shares of the company’s stock, valued at approximately $1,267,089.48. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 1.08% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in AA. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its holdings in shares of Alcoa by 4,737.1% during the 4th quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 4,578,275 shares of the industrial products company’s stock valued at $208,174,000 after acquiring an additional 4,483,625 shares during the last quarter. Renaissance Technologies LLC bought a new stake in Alcoa during the 1st quarter valued at approximately $318,670,000. Norges Bank bought a new stake in Alcoa during the 4th quarter valued at approximately $128,592,000. Voloridge Investment Management LLC boosted its stake in Alcoa by 178.0% during the 4th quarter. Voloridge Investment Management LLC now owns 2,410,104 shares of the industrial products company’s stock valued at $81,944,000 after purchasing an additional 1,543,244 shares during the period. Finally, Morgan Stanley boosted its stake in Alcoa by 24.9% during the 3rd quarter. Morgan Stanley now owns 5,941,667 shares of the industrial products company’s stock valued at $172,665,000 after purchasing an additional 1,185,323 shares during the period. Institutional investors and hedge funds own 82.39% of the company’s stock.

About Alcoa

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.