Alcoa (NYSE:AA) Posts Earnings Results, Misses Expectations By $0.19 EPS

Alcoa (NYSE:AA) posted its quarterly earnings results on Wednesday. The industrial products company reported ($0.81) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.62) by ($0.19), Briefing.com reports. Alcoa had a negative net margin of 6.17% and a negative return on equity of 6.56%. The company had revenue of $2.60 billion during the quarter, compared to analyst estimates of $2.55 billion. During the same quarter in the previous year, the business posted ($0.23) earnings per share. The company’s revenue for the quarter was down 2.7% on a year-over-year basis.

Alcoa Price Performance

AA opened at $35.48 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.45 and a quick ratio of 0.74. The company has a market capitalization of $6.37 billion, a price-to-earnings ratio of -9.72, a P/E/G ratio of 2.32 and a beta of 2.47. The firm’s fifty day moving average price is $30.97 and its two-hundred day moving average price is $29.02. Alcoa has a 1 year low of $23.07 and a 1 year high of $42.23.

Alcoa Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 21st. Shareholders of record on Tuesday, March 5th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.13%. The ex-dividend date of this dividend was Monday, March 4th. Alcoa’s dividend payout ratio is -10.96%.

Analyst Ratings Changes

A number of research analysts recently issued reports on AA shares. Bank of America raised their price objective on shares of Alcoa from $31.00 to $32.00 and gave the company a “neutral” rating in a report on Monday, March 18th. UBS Group started coverage on shares of Alcoa in a report on Tuesday, January 16th. They issued a “sell” rating and a $29.00 price objective for the company. Jefferies Financial Group raised their price target on shares of Alcoa from $45.00 to $48.00 and gave the stock a “buy” rating in a report on Thursday. BMO Capital Markets raised their price target on shares of Alcoa from $35.00 to $37.00 and gave the stock a “market perform” rating in a report on Thursday. Finally, StockNews.com upgraded shares of Alcoa from a “sell” rating to a “hold” rating in a report on Tuesday, April 9th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, Alcoa presently has a consensus rating of “Hold” and an average price target of $32.71.

Insiders Place Their Bets

In other Alcoa news, EVP Tammi A. Jones sold 26,468 shares of Alcoa stock in a transaction on Wednesday, March 13th. The shares were sold at an average price of $30.78, for a total transaction of $814,685.04. Following the transaction, the executive vice president now directly owns 41,166 shares of the company’s stock, valued at approximately $1,267,089.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Alcoa

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Moors & Cabot Inc. increased its position in shares of Alcoa by 2.2% during the first quarter. Moors & Cabot Inc. now owns 8,748 shares of the industrial products company’s stock valued at $788,000 after buying an additional 185 shares during the period. Thrivent Financial for Lutherans increased its position in shares of Alcoa by 0.6% during the second quarter. Thrivent Financial for Lutherans now owns 48,391 shares of the industrial products company’s stock valued at $2,206,000 after buying an additional 284 shares during the period. State of Wisconsin Investment Board increased its position in shares of Alcoa by 0.4% during the fourth quarter. State of Wisconsin Investment Board now owns 90,102 shares of the industrial products company’s stock valued at $4,097,000 after buying an additional 317 shares during the period. Fairfield Bush & CO. bought a new stake in shares of Alcoa during the first quarter valued at about $29,000. Finally, Envestnet Asset Management Inc. increased its position in shares of Alcoa by 3.2% during the second quarter. Envestnet Asset Management Inc. now owns 11,916 shares of the industrial products company’s stock valued at $404,000 after buying an additional 369 shares during the period. 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.