Alcoa (NYSE:AA) Sees Large Increase in Short Interest

Alcoa (NYSE:AA) was the target of a significant growth in short interest in March. As of March 13th, there was short interest totaling 8,612,080 shares, a growth of 19.6% from the February 26th total of 7,203,338 shares. Approximately 3.3% of the shares of the company are short sold. Based on an average daily volume of 7,645,967 shares, the days-to-cover ratio is currently 1.1 days.

Key Stories Impacting Alcoa

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Supply shocks lifted aluminum prices after reported attacks on aluminum facilities, directly supporting Alcoa’s revenue outlook and driving recent share-strength. Alcoa Corp. (AA) Soars 8% on Aluminum Supply Concerns
• Positive Sentiment: Analyst optimism and higher price targets are reinforcing the rally; one note highlights a street-high $78 target and says aluminum is being viewed as the “next oil,” lending upside to AA. Alcoa Stock Has Surged Higher on Aluminum Price Spike. 1 Analyst Still Thinks It Can Gain 14%.
• Positive Sentiment: Unusually high volumes of call-option purchases point to speculative and institutional bullish positioning that can amplify near-term upside. Traders Purchase High Volume of Alcoa Call Options (NYSE:AA)
• Neutral Sentiment: Investors are re‑assessing Alcoa’s valuation after strong recent gains; some see current pricing as justified by fundamentals and price momentum, while others warn elevated multiples limit margin for error. Assessing Alcoa (AA) Valuation After Strong Recent Share Price Momentum
• Neutral Sentiment: Policy risk: a proposed U.S. tariff plan to apply duties to the full value of finished steel and aluminum goods could help domestic metal producers but has mixed demand implications; impact on Alcoa is uncertain and depends on final scope and trade responses. Trump Plans 25% Tariff on Steel, Aluminum Finished Imports, Expanding Duties to Full Product Value
• Negative Sentiment: Near-term risk: the stock’s rapid run (multi‑week gains and proximity to the 1‑year high) raises the chance of profit‑taking or a pullback if aluminum prices cool or macro sentiment reverses. Assessing Alcoa (AA) Valuation After Strong Recent Share Price Momentum

Wall Street Analyst Weigh In

AA has been the topic of a number of recent research reports. JPMorgan Chase & Co. upgraded shares of Alcoa from an “underweight” rating to a “neutral” rating and lifted their price target for the stock from $50.00 to $68.00 in a research note on Friday, March 13th. B. Riley Financial restated a “buy” rating on shares of Alcoa in a research note on Friday, January 23rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Alcoa in a report on Monday, December 29th. Zacks Research lowered shares of Alcoa from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Finally, Wall Street Zen raised shares of Alcoa from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $50.45.

Alcoa Stock Performance

Alcoa stock opened at $72.12 on Thursday. The firm has a market capitalization of $19.03 billion, a P/E ratio of 16.32 and a beta of 1.69. The stock has a fifty day moving average price of $61.18 and a two-hundred day moving average price of $49.60. Alcoa has a 52-week low of $21.53 and a 52-week high of $72.17. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.44 and a quick ratio of 0.87.

Alcoa (NYSE:AA) last issued its earnings results on Thursday, January 22nd. The industrial products company reported $1.26 EPS for the quarter, beating the consensus estimate of $0.95 by $0.31. The company had revenue of $6.75 billion for the quarter, compared to the consensus estimate of $3.28 billion. Alcoa had a net margin of 9.12% and a return on equity of 16.19%. The firm’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.04 EPS. As a group, analysts anticipate that Alcoa will post 4.43 EPS for the current fiscal year.

Alcoa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. Alcoa’s dividend payout ratio (DPR) is presently 9.05%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Basepoint Wealth LLC acquired a new stake in Alcoa in the 4th quarter valued at about $25,000. Advisory Services Network LLC bought a new stake in shares of Alcoa during the third quarter valued at approximately $27,000. Raleigh Capital Management Inc. grew its stake in shares of Alcoa by 52,500.0% during the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 525 shares during the last quarter. Root Financial Partners LLC acquired a new stake in shares of Alcoa in the third quarter valued at approximately $29,000. Finally, CoreCap Advisors LLC raised its position in Alcoa by 74.1% in the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock worth $30,000 after purchasing an additional 237 shares during the last quarter.

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.