Alcoa (NYSE:AA) Shares Gap Down - Here's What Happened

Alcoa Co. (NYSE:AA - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $46.17, but opened at $44.70. Alcoa shares last traded at $42.35, with a volume of 3,498,742 shares.

Analysts Set New Price Targets

Several brokerages have commented on AA. JPMorgan Chase & Co. raised their price target on shares of Alcoa from $36.00 to $39.00 and gave the company a "neutral" rating in a report on Thursday, October 17th. B. Riley raised Alcoa from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $41.00 to $50.00 in a research note on Thursday, October 17th. B. Riley Financial restated a "neutral" rating and set a $41.00 target price on shares of Alcoa in a research report on Tuesday, September 17th. StockNews.com raised Alcoa from a "sell" rating to a "hold" rating in a report on Thursday, October 17th. Finally, Morgan Stanley boosted their price objective on Alcoa from $48.00 to $49.00 and gave the stock an "overweight" rating in a report on Friday, October 18th. Five equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.25.

Alcoa Stock Down 8.0 %

The company has a market cap of $10.98 billion, a PE ratio of -24.14, a PEG ratio of 0.92 and a beta of 2.44. The stock's 50 day moving average price is $42.51 and its 200-day moving average price is $38.36. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.80 and a current ratio of 1.41.

Alcoa (NYSE:AA - Get Free Report) last announced its quarterly earnings data on Wednesday, October 16th. The industrial products company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.34. Alcoa had a negative return on equity of 1.45% and a negative net margin of 2.65%. The firm had revenue of $2.90 billion for the quarter, compared to analysts' expectations of $2.97 billion. During the same period last year, the firm earned ($1.14) earnings per share. The company's revenue for the quarter was up 11.6% compared to the same quarter last year. On average, analysts predict that Alcoa Co. will post 0.9 earnings per share for the current year.

Alcoa Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Stockholders of record on Tuesday, October 29th were paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.94%. The ex-dividend date was Tuesday, October 29th. Alcoa's dividend payout ratio (DPR) is presently -22.73%.

Insider Buying and Selling

In other Alcoa news, EVP Renato Bacchi sold 23,867 shares of the company's stock in a transaction that occurred on Tuesday, October 22nd. The stock was sold at an average price of $42.29, for a total transaction of $1,009,335.43. Following the completion of the transaction, the executive vice president now owns 57,317 shares of the company's stock, valued at $2,423,935.93. This represents a 29.40 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website.

Hedge Funds Weigh In On Alcoa

Hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. purchased a new position in shares of Alcoa during the second quarter valued at about $27,000. UMB Bank n.a. grew its holdings in shares of Alcoa by 481.7% during the 3rd quarter. UMB Bank n.a. now owns 762 shares of the industrial products company's stock worth $29,000 after acquiring an additional 631 shares during the period. Quarry LP bought a new position in shares of Alcoa in the 3rd quarter worth approximately $43,000. Continuum Advisory LLC raised its position in shares of Alcoa by 1,945.5% in the 3rd quarter. Continuum Advisory LLC now owns 1,125 shares of the industrial products company's stock worth $46,000 after acquiring an additional 1,070 shares in the last quarter. Finally, Millburn Ridgefield Corp purchased a new position in shares of Alcoa in the 3rd quarter valued at approximately $89,000.

Alcoa Company Profile

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.