Alcoa (NYSE:AA – Get Free Report)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $52.14, but opened at $48.85. Alcoa shares last traded at $47.2770, with a volume of 2,802,607 shares changing hands.
Trending Headlines about Alcoa
Here are the key news stories impacting Alcoa this week:
- Positive Sentiment: The acquisition could strengthen Alcoa’s long-term business by making it one of the largest integrated aluminum producers globally and improving control over raw materials and refining capacity. Alcoa (AA) Agrees To Buy South32 Assets To Build A Leading Aluminum Business
- Positive Sentiment: Management says the deal should generate about $900 million in net present value synergies and be accretive to earnings and free cash flow after closing, which supports the bull case if integration goes smoothly. Alcoa to Acquire South32 Aluminum Assets Worldwide
- Neutral Sentiment: Morgan Stanley reaffirmed its Overweight rating and $79 price target, signaling continued analyst confidence despite the market’s reaction. Benzinga report on Morgan Stanley rating
- Negative Sentiment: Shares fell after the announcement because investors are worried about the roughly $4.1 billion upfront price tag, the $3.1 billion cash component, and the issuance of about 17 million new shares, which raises dilution and financing concerns. Alcoa Corporation (AA) to Acquire South32 Aluminum Assets in $4.1B Deal
- Negative Sentiment: The market is also weighing integration risk and leverage from the deal, which helped drive the recent selloff even though the company argues the transaction is strategically attractive. Alcoa Slides After South32 Deal Sparks Financing and Dilution Concerns
Analysts Set New Price Targets
A number of equities analysts recently issued reports on the company. Wall Street Zen cut Alcoa from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Zacks Research downgraded Alcoa from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. UBS Group lowered their target price on shares of Alcoa from $80.00 to $68.00 and set a “buy” rating for the company in a research note on Tuesday. Citigroup upped their price target on shares of Alcoa from $54.00 to $76.00 and gave the stock a “buy” rating in a report on Monday, March 16th. Finally, Argus set a $73.00 price target on shares of Alcoa in a research note on Monday, April 27th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $67.82.
Alcoa Stock Up 2.5%
The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48. The company has a fifty day simple moving average of $65.26 and a two-hundred day simple moving average of $62.73. The firm has a market capitalization of $12.84 billion, a PE ratio of 12.32 and a beta of 1.63.
Alcoa (NYSE:AA – Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The firm had revenue of $3.19 billion for the quarter, compared to analysts’ expectations of $3.35 billion. During the same quarter in the prior year, the business posted $2.15 EPS. The business’s quarterly revenue was down 5.2% on a year-over-year basis. Analysts forecast that Alcoa will post 7.41 EPS for the current fiscal year.
Alcoa Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.40 dividend on an annualized basis and a yield of 0.8%. Alcoa’s dividend payout ratio (DPR) is 10.13%.
Institutional Investors Weigh In On Alcoa
Several hedge funds have recently modified their holdings of the business. Basepoint Wealth LLC purchased a new position in Alcoa during the fourth quarter valued at approximately $25,000. Western Wealth Management LLC bought a new stake in Alcoa during the 1st quarter valued at $35,000. Raleigh Capital Management Inc. boosted its position in Alcoa by 52,500.0% during the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 525 shares in the last quarter. CoreCap Advisors LLC increased its holdings in shares of Alcoa by 74.1% in the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock valued at $30,000 after acquiring an additional 237 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its holdings in shares of Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 581 shares during the period.
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.
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