Alcoa (NYSE:AA) Shares Gap Up – Should You Buy?

Alcoa Co. (NYSE:AA)’s share price gapped up before the market opened on Friday . The stock had previously closed at $41.21, but opened at $43.86. Alcoa shares last traded at $44.20, with a volume of 2,959,951 shares.

Analyst Ratings Changes

A number of research firms recently weighed in on AA. Argus upgraded shares of Alcoa from a “hold” rating to a “buy” rating and set a $48.00 price objective on the stock in a research report on Wednesday, October 23rd. JPMorgan Chase & Co. lifted their target price on shares of Alcoa from $36.00 to $39.00 and gave the company a “neutral” rating in a report on Thursday, October 17th. UBS Group increased their price target on shares of Alcoa from $40.00 to $50.00 and gave the stock a “buy” rating in a report on Tuesday, October 15th. Wolfe Research upgraded Alcoa from a “peer perform” rating to an “outperform” rating and set a $36.00 target price on the stock in a research report on Wednesday, September 4th. Finally, B. Riley Financial reissued a “neutral” rating and issued a $41.00 price target on shares of Alcoa in a report on Tuesday, September 17th. Five analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, Alcoa presently has an average rating of “Moderate Buy” and an average price target of $44.75.

Alcoa Trading Up 8.8 %

The business’s fifty day moving average price is $38.63 and its 200 day moving average price is $37.56. The company has a quick ratio of 0.80, a current ratio of 1.41 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $11.58 billion, a PE ratio of -25.36, a P/E/G ratio of 0.77 and a beta of 2.42.

Alcoa (NYSE:AA) last released its earnings results on Wednesday, October 16th. The industrial products company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.23 by $0.34. Alcoa had a negative net margin of 2.65% and a negative return on equity of 1.45%. The firm had revenue of $2.90 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same period in the previous year, the company earned ($1.14) EPS. Alcoa’s revenue for the quarter was up 11.6% on a year-over-year basis. As a group, analysts expect that Alcoa Co. will post 0.89 EPS for the current fiscal year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Investors of record on Tuesday, October 29th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.89%. The ex-dividend date is Tuesday, October 29th. Alcoa’s dividend payout ratio (DPR) is -22.73%.

Insiders Place Their Bets

In other news, EVP Renato Bacchi sold 23,867 shares of the firm’s stock in a transaction dated Tuesday, October 22nd. The stock was sold at an average price of $42.29, for a total value of $1,009,335.43. Following the transaction, the executive vice president now directly owns 57,317 shares in the company, valued at $2,423,935.93. This trade represents a 29.40 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Institutional Trading of Alcoa

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Fifth Third Bancorp lifted its position in Alcoa by 15.1% during the second quarter. Fifth Third Bancorp now owns 2,353 shares of the industrial products company’s stock valued at $94,000 after buying an additional 309 shares in the last quarter. Blue Trust Inc. increased its position in shares of Alcoa by 12.0% in the third quarter. Blue Trust Inc. now owns 3,222 shares of the industrial products company’s stock worth $128,000 after acquiring an additional 344 shares in the last quarter. CreativeOne Wealth LLC raised its stake in shares of Alcoa by 4.1% in the 3rd quarter. CreativeOne Wealth LLC now owns 9,114 shares of the industrial products company’s stock valued at $352,000 after acquiring an additional 360 shares during the period. Pacer Advisors Inc. lifted its holdings in shares of Alcoa by 1.4% during the 2nd quarter. Pacer Advisors Inc. now owns 26,965 shares of the industrial products company’s stock valued at $1,073,000 after acquiring an additional 368 shares in the last quarter. Finally, Rosenberg Matthew Hamilton boosted its position in Alcoa by 15.3% during the 3rd quarter. Rosenberg Matthew Hamilton now owns 3,452 shares of the industrial products company’s stock worth $133,000 after purchasing an additional 459 shares during the period.

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.