Alcoa (NYSE:AA) Shares Gap Down After Earnings Miss

Alcoa (NYSE:AA)’s stock price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $70.41, but opened at $65.05. Alcoa shares last traded at $66.5190, with a volume of 1,522,805 shares changing hands.

The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a return on equity of 16.19% and a net margin of 9.12%.The company had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same quarter in the prior year, the company posted $2.15 earnings per share. The business’s revenue was down 5.2% compared to the same quarter last year.

Alcoa Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were issued a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Tuesday, March 10th. Alcoa’s dividend payout ratio is currently 9.05%.

Alcoa News Roundup

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Higher aluminum prices boosted profitability versus last quarter and the company highlighted improved net income and margins compared with Q4, supporting near-term revenue per ton. Alcoa Q1 Press Release
• Positive Sentiment: Management emphasized strategic initiatives and a strong cash balance and said it expects a better second quarter, which could reassure investors if operational improvements materialize. Alcoa Q1 Highlights
• Positive Sentiment: Wall Street views and momentum remain mixed but include several analyst targets above the current price and momentum screens that still list AA as a trader/long candidate after the recent run. Quiver Quant: AA Post-Earnings
• Neutral Sentiment: Broader market futures were firmer in premarket trade, which may provide some upward pressure on cyclicals like Alcoa even as stock-specific news dominates. US Premarket Movers
• Neutral Sentiment: Full earnings call transcripts and slides are available for deeper scrutiny; investors should review commentary on volumes, pricing, and capital spending for guidance clarity. Earnings Call Transcript
• Negative Sentiment: Q1 results missed top-line and consensus EPS (revenue and adjusted EPS came in below analyst expectations), triggering the immediate sell-off as investors focus on demand/volume weakness. MarketBeat: Q1 Earnings Summary
• Negative Sentiment: Underlying operational metrics showed pressure—lower shipments, declines in gross/operating profit and negative operating cash flow in the quarter—raising near-term margin and cash-flow risk. Quiver Quant: Financial Details
• Negative Sentiment: Geopolitical risk (Iran conflict) is expected to modestly hit adjusted earnings and adds uncertainty to supply/demand dynamics that could keep volatility elevated. WSJ: Profit, Sales Fall

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. UBS Group upped their price objective on shares of Alcoa from $48.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, March 12th. Zacks Research upgraded shares of Alcoa from a “hold” rating to a “strong-buy” rating in a report on Friday, April 10th. JPMorgan Chase & Co. upped their price objective on shares of Alcoa from $68.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, April 9th. B. Riley Financial upped their target price on shares of Alcoa from $78.00 to $96.00 and gave the stock a “buy” rating in a research note on Tuesday, April 7th. Finally, Morgan Stanley raised shares of Alcoa from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $64.00 to $80.00 in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $61.73.

Institutional Investors Weigh In On Alcoa

Several large investors have recently added to or reduced their stakes in AA. Basepoint Wealth LLC purchased a new stake in shares of Alcoa in the 4th quarter valued at approximately $25,000. Raleigh Capital Management Inc. increased its position in shares of Alcoa by 52,500.0% in the 4th quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 525 shares during the last quarter. CoreCap Advisors LLC increased its position in shares of Alcoa by 74.1% in the 4th quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 237 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock valued at $31,000 after purchasing an additional 581 shares during the last quarter. Finally, Quarry LP increased its position in shares of Alcoa by 96.0% in the 4th quarter. Quarry LP now owns 694 shares of the industrial products company’s stock valued at $37,000 after purchasing an additional 340 shares during the last quarter.

Alcoa Stock Performance

The stock’s 50-day simple moving average is $63.89 and its 200 day simple moving average is $52.49. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.87 and a current ratio of 1.44. The company has a market capitalization of $17.51 billion, a PE ratio of 15.09 and a beta of 1.70.

About Alcoa

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.