Alcoa (AA) to Repurchase $200.00 million in Stock

Alcoa (NYSE:AA) declared that its Board of Directors has approved a stock repurchase plan, which permits the company to buyback $200.00 million in shares on Wednesday, October 17th. This buyback authorization permits the industrial products company to reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Several equities analysts have commented on AA shares. Zacks Investment Research lowered Alcoa from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 25th. ValuEngine raised Alcoa from a “hold” rating to a “buy” rating in a research report on Thursday, July 5th. BMO Capital Markets lowered their price objective on Alcoa from $80.00 to $75.00 and set an “outperform” rating for the company in a research report on Thursday, July 19th. Jefferies Financial Group set a $65.00 price objective on Alcoa and gave the company a “buy” rating in a research report on Thursday, July 19th. 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 report on Thursday, July 19th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and eleven have assigned a buy rating to the stock. Alcoa presently has a consensus rating of “Buy” and a consensus target price of $61.67.

AA opened at $38.60 on Friday. The company has a quick ratio of 0.87, a current ratio of 1.42 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $6.84 billion, a PE ratio of 12.82, a P/E/G ratio of 2.84 and a beta of -0.10. Alcoa has a 1 year low of $35.13 and a 1 year high of $62.35.

Alcoa (NYSE:AA) last posted its quarterly earnings results on Wednesday, October 17th. The industrial products company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.27. The firm had revenue of $3.39 billion during 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%. Alcoa’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.72 EPS. Sell-side analysts forecast that Alcoa will post 3.68 earnings per share for the current fiscal year.

About Alcoa

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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