Alcoa Corp (NYSE:AA) shares shot up 5.9% on Thursday following a better than expected earnings announcement. The company traded as high as $40.68 and last traded at $38.85. 13,824,745 shares changed hands during trading, an increase of 234% from the average session volume of 4,133,996 shares. The stock had previously closed at $36.70.
The industrial products company reported $0.63 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.27. The business had revenue of $3.39 billion for the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a positive return on equity of 10.43% and a negative net margin of 0.09%. The business’s revenue was up 14.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.72 earnings per share.
Alcoa declared that its Board of Directors has approved a stock repurchase plan on Wednesday, October 17th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the industrial products company to reacquire up to 2.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.
Hedge funds have recently modified their holdings of the stock. Acadian Asset Management LLC bought a new stake in Alcoa during the second quarter valued at about $105,000. Quad Cities Investment Group LLC bought a new stake in Alcoa during the second quarter valued at about $112,000. Berson & Corrado Investment Advisors LLC bought a new stake in Alcoa during the second quarter valued at about $202,000. Lodestar Investment Counsel LLC IL bought a new stake in Alcoa during the second quarter valued at about $205,000. Finally, Hartford Investment Management Co. bought a new stake in Alcoa during the second quarter valued at about $206,000.
The stock has a market cap of $6.84 billion, a price-to-earnings ratio of 12.82, a PEG ratio of 2.84 and a beta of -0.10. The company has a quick ratio of 0.87, a current ratio of 1.42 and a debt-to-equity ratio of 0.27.
About Alcoa (NYSE:AA)
Alcoa Corporation produces and sells bauxite, alumina, and aluminum products. The company offers aluminum sheets for the production of cans for beverage and food. It also engages in the aluminum smelting, casting, and rolling businesses; and generation and sale of renewable energy, as well as provision of ancillary services.
Recommended Story: What is the 52-week high/low?
Receive News & Ratings for Alcoa Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alcoa and related companies with MarketBeat.com's FREE daily email newsletter.