Alcoa Co. Plans Quarterly Dividend of $0.10 (NYSE:AA)

Alcoa Co. (NYSE:AA) declared a quarterly dividend on Friday, May 9th, RTT News reports. Shareholders of record on Tuesday, May 20th will be paid a dividend of 0.10 per share by the industrial products company on Friday, June 6th. This represents a $0.40 dividend on an annualized basis and a yield of 1.36%. The ex-dividend date of this dividend is Tuesday, May 20th.

Alcoa has raised its dividend payment by an average of 58.7% per year over the last three years. Alcoa has a dividend payout ratio of 15.5% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Alcoa to earn $3.17 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 12.6%.

Alcoa Price Performance

Shares of NYSE AA opened at $29.51 on Friday. The firm has a market capitalization of $7.64 billion, a P/E ratio of -184.42, a P/E/G ratio of 0.19 and a beta of 2.29. The company has a quick ratio of 0.86, a current ratio of 1.45 and a debt-to-equity ratio of 0.48. The stock’s 50-day simple moving average is $27.80 and its two-hundred day simple moving average is $34.91. Alcoa has a twelve month low of $21.53 and a twelve month high of $47.77.

Alcoa (NYSE:AA) last posted its quarterly earnings data on Wednesday, April 16th. The industrial products company reported $2.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.73 by $0.42. Alcoa had a return on equity of 5.54% and a net margin of 0.50%. The firm had revenue of $3.37 billion during the quarter, compared to analysts’ expectations of $3.58 billion. As a group, equities analysts anticipate that Alcoa will post 4.43 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Morgan Stanley cut their price objective on Alcoa from $55.00 to $51.00 and set an “overweight” rating for the company in a report on Tuesday, January 28th. Bank of America reiterated an “underperform” rating and issued a $26.00 price objective (down from $58.00) on shares of Alcoa in a report on Tuesday, April 8th. JPMorgan Chase & Co. cut their price objective on Alcoa from $28.00 to $25.00 and set a “neutral” rating for the company in a report on Thursday, April 17th. StockNews.com upgraded Alcoa from a “hold” rating to a “buy” rating in a report on Friday, April 18th. Finally, UBS Group reiterated a “neutral” rating and issued a $31.00 price objective on shares of Alcoa in a report on Thursday. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, Alcoa has a consensus rating of “Moderate Buy” and an average price target of $43.08.

Institutional Investors Weigh In On Alcoa

A hedge fund recently raised its stake in Alcoa stock. NewEdge Advisors LLC grew its holdings in Alcoa Co. (NYSE:AA) by 1,098.0% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 11,704 shares of the industrial products company’s stock after buying an additional 10,727 shares during the quarter. NewEdge Advisors LLC’s holdings in Alcoa were worth $357,000 at the end of the most recent quarter. Institutional investors and hedge funds own 82.39% of the company’s stock.

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.