Alcoa (AA) Shares Up 5.9% on Earnings Beat

Alcoa Corp (NYSE:AA) shot up 5.9% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $40.68 and last traded at $38.85. 13,824,745 shares were traded during mid-day 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, beating the Zacks’ consensus estimate of $0.36 by $0.27. Alcoa had a return on equity of 10.30% and a net margin of 1.11%. The business had revenue of $3.39 billion during the quarter, compared to the consensus estimate of $3.35 billion. During the same period in the previous year, the business earned $0.72 EPS. The business’s quarterly revenue was up 14.4% on a year-over-year basis.

A number of brokerages have recently weighed in on AA. BMO Capital Markets lowered their price target on Alcoa from $80.00 to $75.00 and set an “outperform” rating for the company in a report on Thursday, July 19th. Jefferies Financial Group set a $65.00 price objective on Alcoa and gave the stock a “buy” rating in a research note on Thursday, July 19th. ValuEngine downgraded Alcoa from a “buy” rating to a “hold” rating in a research note on Saturday, July 14th. B. Riley assumed coverage on Alcoa in a research note on Thursday, June 21st. They set a “neutral” rating and a $47.00 price objective for the company. Finally, Credit Suisse Group lowered their price objective on Alcoa from $69.00 to $65.00 and set an “outperform” rating for the company in a research note on Thursday, July 19th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and eleven have issued a buy rating to the company. Alcoa currently has a consensus rating of “Buy” and a consensus price target of $61.67.

Institutional investors and hedge funds have recently modified their holdings of the stock. Acadian Asset Management LLC bought a new position in shares of Alcoa in the second quarter worth $105,000. Quad Cities Investment Group LLC bought a new position in shares of Alcoa in the second quarter worth $112,000. Berson & Corrado Investment Advisors LLC bought a new position in shares of Alcoa in the second quarter worth $202,000. Lodestar Investment Counsel LLC IL bought a new position in shares of Alcoa in the second quarter worth $205,000. Finally, Hartford Investment Management Co. bought a new position in shares of Alcoa in the second quarter worth $206,000.

The company has a market capitalization of $7.53 billion, a PE ratio of 13.21, a price-to-earnings-growth ratio of 2.11 and a beta of -0.08. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.42 and a quick ratio of 0.87.

Alcoa Company Profile (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.

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