Alcoa (NYSE:AA) Trading Down 2.9% – Should You Sell?

Alcoa Co. (NYSE:AA) dropped 2.9% on Friday . The company traded as low as $36.80 and last traded at $36.89. Approximately 357,715 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 1,431,005 shares. The stock had previously closed at $37.99.

Analysts Set New Price Targets

AA has been the subject of several recent analyst reports. Bank of America upped their target price on shares of Alcoa to $58.00 and gave the company a “buy” rating in a research note on Thursday, November 28th. UBS Group raised their price objective on Alcoa from $40.00 to $50.00 and gave the stock a “buy” rating in a research note on Tuesday, October 15th. Argus upgraded Alcoa from a “hold” rating to a “buy” rating and set a $48.00 price target for the company in a report on Wednesday, October 23rd. StockNews.com raised Alcoa from a “sell” rating to a “hold” rating in a research report on Thursday, October 17th. Finally, BMO Capital Markets boosted their price objective on Alcoa from $42.00 to $45.00 and gave the company a “market perform” rating in a research report on Thursday, October 17th. Four investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $46.73.

Alcoa Stock Performance

The firm has a market capitalization of $9.27 billion, a P/E ratio of -20.39, a P/E/G ratio of 0.79 and a beta of 2.47. The stock has a fifty day simple moving average of $41.86 and a two-hundred day simple moving average of $37.96. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.41 and a quick ratio of 0.80.

Alcoa (NYSE:AA) last posted its earnings results on Wednesday, October 16th. The industrial products company reported $0.57 earnings per share for the quarter, beating 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 company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.97 billion. During the same quarter last year, the company earned ($1.14) earnings per share. The company’s revenue for the quarter was up 11.6% on a year-over-year basis. On average, research analysts predict that Alcoa Co. will post 0.9 EPS for the current year.

Alcoa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Investors of record on Tuesday, October 29th were issued a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.11%. The ex-dividend date was Tuesday, October 29th. Alcoa’s dividend payout ratio (DPR) is presently -22.73%.

Insider Activity

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 transaction, the executive vice president now owns 57,317 shares of the company’s stock, valued at approximately $2,423,935.93. The trade was a 29.40 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Alcoa

A number of large investors have recently modified their holdings of AA. Newbridge Financial Services Group Inc. purchased a new position in shares of Alcoa in the second quarter valued at about $27,000. UMB Bank n.a. raised its stake in shares of Alcoa by 481.7% in the third quarter. UMB Bank n.a. now owns 762 shares of the industrial products company’s stock worth $29,000 after purchasing an additional 631 shares during the last quarter. Quarry LP bought a new stake in Alcoa in the 3rd quarter worth approximately $43,000. Continuum Advisory LLC boosted its holdings 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 buying an additional 1,070 shares during the last quarter. Finally, GAMMA Investing LLC increased its position in Alcoa by 399.0% in the fourth quarter. GAMMA Investing LLC now owns 1,447 shares of the industrial products company’s stock worth $55,000 after buying an additional 1,157 shares in the last quarter. 82.39% of the stock is owned by hedge funds and other institutional investors.

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.