Alcoa (NYSE:AA) Shares Gap Down – Time to Sell?

Alcoa Co. (NYSE:AA)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $26.77, but opened at $26.15. Alcoa shares last traded at $25.93, with a volume of 2,036,546 shares trading hands.

Analyst Ratings Changes

AA has been the topic of several analyst reports. JPMorgan Chase & Co. dropped their price target on shares of Alcoa from $28.00 to $25.00 and set a “neutral” rating on the stock in a research note on Thursday, April 17th. Bank of America restated an “underperform” rating and issued a $26.00 price target (down previously from $58.00) on shares of Alcoa in a research note on Tuesday, April 8th. UBS Group restated a “neutral” rating and issued a $31.00 price target on shares of Alcoa in a research note on Thursday, May 15th. Wall Street Zen lowered shares of Alcoa from a “buy” rating to a “hold” rating in a research note on Thursday, May 22nd. Finally, Barclays increased their price objective on shares of Alcoa to $31.00 and gave the company a “hold” rating in a report on Friday, May 16th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $42.50.

Alcoa Stock Down 1.5%

The stock has a market capitalization of $6.83 billion, a P/E ratio of -164.79, a PEG ratio of 0.19 and a beta of 2.29. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.45 and a quick ratio of 0.86. The stock’s fifty day moving average is $26.64 and its two-hundred day moving average is $33.86.

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

Alcoa Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Tuesday, May 20th will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.52%. The ex-dividend date of this dividend is Tuesday, May 20th. Alcoa’s payout ratio is 12.05%.

Institutional Trading of Alcoa

A number of large investors have recently added to or reduced their stakes in the business. Rheos Capital Works Inc. acquired a new position in Alcoa in the 4th quarter worth approximately $2,002,000. Drummond Knight Asset Management Pty Ltd acquired a new position in Alcoa in the 4th quarter worth approximately $19,646,000. Corient Private Wealth LLC boosted its stake in Alcoa by 4.6% in the 4th quarter. Corient Private Wealth LLC now owns 21,602 shares of the industrial products company’s stock worth $816,000 after purchasing an additional 948 shares during the period. Rhumbline Advisers boosted its stake in Alcoa by 1.6% in the 4th quarter. Rhumbline Advisers now owns 688,784 shares of the industrial products company’s stock worth $26,022,000 after purchasing an additional 11,094 shares during the period. Finally, M&T Bank Corp boosted its stake in Alcoa by 16.6% in the 4th quarter. M&T Bank Corp now owns 26,437 shares of the industrial products company’s stock worth $999,000 after purchasing an additional 3,758 shares during the period. 82.39% of the stock is currently owned by institutional investors.

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.