Alcoa Co. (NYSE:AA), a leading industrial products company, has recently received a consensus rating of “Hold” from eleven brokerages, as reported by Bloomberg. Among the analysts covering Alcoa, two have recommended selling the stock, six have advised holding it, and three have assigned a buy recommendation to the company. These ratings reflect the diverse perspectives on Alcoa’s performance and potential in the market. The average twelve-month price objective among those providing reports on the stock in the last year is $37.82.
On Friday, September 22, Alcoa stock opened at $27.87. The firm’s 50-day simple moving average stands at $31.34 while its 200-day simple moving average is $35.44. It is important to note that Alcoa has witnessed fluctuations in its stock value over the past year, with a fifty-two week low of $27.76 and a fifty-two week high of $57.61.
In terms of financial indicators, Alcoa has a market capitalization of $4.97 billion and an unusual price-to-earnings ratio of -3.42, indicating that the company’s earnings are currently negative. Additionally, Alcoa has a beta value of 2.46, suggesting that it is more volatile than the overall market index. The debt-to-equity ratio stands at 0.28, indicating that Alcoa has a relatively low level of debt compared to its equity position. Furthermore, the company boasts a current ratio of 1.80 and a quick ratio of 0.87, demonstrating its ability to meet short-term financial obligations.
Several large investors have made notable transactions with Alcoa shares in recent times as well.
Bank Julius Baer & Co Ltd Zurich saw its stake in Alcoa increase by an astonishing 98,060.4% during the second quarter. The bank now owns 26,012,519 shares of Alcoa’s stock, originally valued at $882,605,000. Similarly, Bank of New York Mellon Corp raised its stake in Alcoa by 72.4% during the first quarter. The bank currently holds 10,299,263 shares of the company’s stock valued at $438,337,000. Another large investor is State Street Corp., which raised its stake in Alcoa by 3.4% and now owns 8,273,477 shares worth $352,119,000. Furthermore, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main saw a significant increase in its stake in Alcoa by 4,737.1% during the fourth quarter and currently owns 4,578,275 shares valued at $208,174,000. Lastly,Franklin Resources Inc. raised its stake in Alcoa by 11.5% during the first quarter to own around 4,416,699 shares valued at $187,
975,
000.
On July 19th of this year (2023), Alcoa released its quarterly earnings report. The industrial products company reported an EPS (earnings per share) of ($0.35) for the quarteran improvement of $0.24 compared to analysts’ consensus estimates of ($0.59). Although revenue for the quarter was reported at $2.68 billion identical to analyst estimates; it represented a decrease of 26.3% compared to the same period in the previous year when the firm posted $2.67 earnings per share.
Throughout various research analysts expect that Alcoa will post a negative EPS for the current year with -1.4 as an estimated value.
These information regarding Alcoas ratings exhibit both optimism and caution when it comes to investing in this industrial products industry player.
[bs_slider_forecast ticker=”AA”]
Alcoa Faces Market Skepticism as Analysts Issue Varied Ratings and Lowered Price Targets
Alcoa Faces Persistent Market Concerns as Analysts Issue Diverse Ratings and Reduced Price Targets
Date: September 22, 2023
Alcoa, a renowned aluminum production company, witnessed a flurry of critical assessments recently from multiple research analysts. These analysts provided varying perspectives on the stock’s performance and gave divergent rating recommendations. The overall sentiment in the market appears to be predominantly skeptical towards Alcoa’s future prospects.
StockNews.com initiated coverage on Alcoa shares in a comprehensive research report issued on August 17th, expressing a cautious “sell” rating on the stock. This sentiment was echoed by Wolfe Research when it downgraded its rating from “market perform” to an even more negative “underperform” rating, coupled with an assigned price objective of $25.00 per share in their report published on July 11th.
Adding fuel to the fire, B. Riley Financial also reduced their target price for Alcoa shares from $37.00 to $34.00 while maintaining a neutral rating for the company in their research note released on July 21st. Morgan Stanley further reinforced this bearish stance by lowering their target price from $31.00 to $28.00 and issuing an “underweight” rating on August 22nd.
Analysts at B. Riley Financial had earlier noted similar concerns about Alcoa’s financial stability in their July 21st research note when they first lowered their target price whilst maintaining a neutral rating.
Despite these pessimistic evaluations, there have been some positive developments for Alcoa with regards to dividend distributions. The company announced its most recent quarterly dividend payment which occurred on August 24th. Investors who held shares up until August 8th received a payout of $0.10 per share as part of Alcoa’s dividend program. This translates into an annualized dividend of $0.40 per share and a reasonably attractive dividend yield of 1.44%. However, it is important to note that Alcoa’s payout ratio currently stands at -4.90%.
These varying assessments and the persistent concerns expressed by research analysts have undoubtedly left investors perplexed about the future trajectory of Alcoa in the market. The reduced price targets from multiple sources highlight an underlying sense of skepticism regarding the long-term viability and profitability of the company.
It remains to be seen how Alcoa plans to address these concerns and regain investor confidence. Industry experts are eagerly awaiting management’s response to these ratings and revised price targets, as they may shed light on the company’s strategic vision moving forward.
Thus, considering the critical evaluations provided by industry professionals alongside the ongoing challenges faced by Alcoa, prospective and existing investors should exercise caution when evaluating investment opportunities in this particular stock.
Disclaimer: The above content is for informational purposes only and should not be construed as investment advice. As with any investment decision, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
