Kaiser Aluminum (NASDAQ:KALU) Shares Gap Down Following Weak Earnings

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $153.95, but opened at $134.90. Kaiser Aluminum shares last traded at $122.8820, with a volume of 124,888 shares.

The industrial products company reported $1.89 earnings per share for the quarter, missing analysts’ consensus estimates of $2.37 by ($0.48). The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Kaiser Aluminum had a return on equity of 24.71% and a net margin of 5.49%. Kaiser Aluminum’s quarterly revenue was up 43.9% compared to the same quarter last year. During the same period last year, the firm posted $1.86 earnings per share.

Kaiser Aluminum Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 23rd will be paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Friday, October 23rd. Kaiser Aluminum’s payout ratio is currently 22.83%.

Analysts Set New Price Targets

Several research firms have issued reports on KALU. Wells Fargo & Company upgraded Kaiser Aluminum from an “underweight” rating to an “equal weight” rating and dropped their target price for the stock from $169.00 to $160.00 in a research report on Friday, September 18th. Weiss Ratings lowered Kaiser Aluminum from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, September 2nd. Zacks Research cut Kaiser Aluminum from a “strong-buy” rating to a “hold” rating in a research report on Friday, September 25th. KeyCorp decreased their price objective on Kaiser Aluminum from $183.00 to $181.00 and set an “overweight” rating on the stock in a research note on Thursday, October 8th. Finally, Wall Street Zen upgraded Kaiser Aluminum from a “buy” rating to a “strong-buy” rating in a research note on Sunday, August 2nd. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $169.40.

Hedge Funds Weigh In On Kaiser Aluminum

Several hedge funds have recently bought and sold shares of KALU. Bank of New York Mellon Corp bought a new position in Kaiser Aluminum in the 2nd quarter valued at $38,353,000. Bank of America Corp DE grew its position in shares of Kaiser Aluminum by 0.9% during the 1st quarter. Bank of America Corp DE now owns 171,369 shares of the industrial products company’s stock valued at $20,652,000 after purchasing an additional 1,508 shares in the last quarter. Principal Financial Group Inc. increased its holdings in shares of Kaiser Aluminum by 32.4% in the first quarter. Principal Financial Group Inc. now owns 101,510 shares of the industrial products company’s stock worth $12,233,000 after purchasing an additional 24,853 shares during the period. Empowered Funds LLC increased its holdings in shares of Kaiser Aluminum by 3.8% in the first quarter. Empowered Funds LLC now owns 76,781 shares of the industrial products company’s stock worth $9,253,000 after purchasing an additional 2,829 shares during the period. Finally, Sei Investments Co. raised its position in shares of Kaiser Aluminum by 59.2% in the first quarter. Sei Investments Co. now owns 62,842 shares of the industrial products company’s stock worth $7,573,000 after buying an additional 23,373 shares in the last quarter. Hedge funds and other institutional investors own 99.29% of the company’s stock.

Kaiser Aluminum Stock Down 20.2%

The company has a quick ratio of 1.17, a current ratio of 2.50 and a debt-to-equity ratio of 1.10. The company has a market cap of $2.01 billion, a PE ratio of 9.10 and a beta of 1.59. The stock has a 50-day moving average of $156.18 and a 200-day moving average of $165.35.

About Kaiser Aluminum

Kaiser Aluminum Corporation is a producer of semi-fabricated aluminum products used by manufacturers in the aerospace and defense, automotive, industrial, and consumer products markets. The company supplies aluminum materials designed for applications that require strength, light weight, corrosion resistance, and other specialized performance characteristics.

Its product portfolio includes rolled aluminum sheet and plate, extruded products, forged components, and other fabricated aluminum products.