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

Shares of Alcoa Co. (NYSE:AA) 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 Upgrades and Downgrades

Several analysts have weighed in on AA shares. BMO Capital Markets upped their target price on Alcoa from $42.00 to $45.00 and gave the company a “market perform” rating in a report on Thursday, October 17th. StockNews.com raised shares of Alcoa from a “sell” rating to a “hold” rating in a research note on Thursday, October 17th. UBS Group raised their target price on shares of Alcoa from $40.00 to $50.00 and gave the company a “buy” rating in a report on Tuesday, October 15th. Bank of America raised shares of Alcoa from a “neutral” rating to a “buy” rating and upped their price target for the company from $43.00 to $52.00 in a report on Tuesday, October 1st. Finally, Argus raised shares of Alcoa from a “hold” rating to a “buy” rating and set a $48.00 price objective for the company in a research note on Wednesday, October 23rd. Five investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat, Alcoa currently has a consensus rating of “Moderate Buy” and an average price target of $44.75.

Alcoa Trading Up 6.8 %

The company has a market cap of $11.37 billion, a PE ratio of -25.01, a price-to-earnings-growth ratio of 0.77 and a beta of 2.42. The company has a current ratio of 1.41, a quick ratio of 0.80 and a debt-to-equity ratio of 0.47. The business has a 50 day simple moving average of $38.94 and a two-hundred day simple moving average of $37.62.

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

Alcoa Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Tuesday, October 29th were paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.91%. The ex-dividend date was Tuesday, October 29th. Alcoa’s dividend payout ratio is currently -22.73%.

Insider Buying and Selling at Alcoa

In other news, EVP Renato Bacchi sold 23,867 shares of the business’s stock in a transaction dated Tuesday, October 22nd. The stock was sold at an average price of $42.29, for a total transaction of $1,009,335.43. Following the completion of the sale, the executive vice president now owns 57,317 shares in the company, valued at approximately $2,423,935.93. The trade was a 29.40 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alcoa

Several institutional investors and hedge funds have recently modified their holdings of AA. Newbridge Financial Services Group Inc. acquired a new stake in Alcoa during the 2nd quarter valued at $27,000. UMB Bank n.a. grew its stake in shares of Alcoa by 481.7% during the third quarter. UMB Bank n.a. now owns 762 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 631 shares in the last quarter. Quarry LP purchased a new stake in shares of Alcoa during the third quarter worth about $43,000. Continuum Advisory LLC lifted its stake in shares of Alcoa by 1,945.5% in the third quarter. Continuum Advisory LLC now owns 1,125 shares of the industrial products company’s stock worth $46,000 after acquiring an additional 1,070 shares in the last quarter. Finally, Toronto Dominion Bank boosted its holdings in Alcoa by 1,501.9% in the first quarter. Toronto Dominion Bank now owns 1,698 shares of the industrial products company’s stock valued at $57,000 after purchasing an additional 1,592 shares during the last quarter. Hedge funds and other institutional investors own 82.39% of the company’s stock.

Alcoa Company Profile

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.