Alcoa (NYSE:AA) Shares Gap Up - What's Next?

Alcoa Co. (NYSE:AA - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $41.21, but opened at $43.86. Alcoa shares last traded at $44.20, with a volume of 2,959,951 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AA shares. StockNews.com upgraded Alcoa from a "sell" rating to a "hold" rating in a research report on Thursday, October 17th. JPMorgan Chase & Co. raised their target price on Alcoa from $36.00 to $39.00 and gave the stock a "neutral" rating in a research note on Thursday, October 17th. UBS Group boosted their price target on shares of Alcoa from $40.00 to $50.00 and gave the company a "buy" rating in a research report on Tuesday, October 15th. Morgan Stanley raised their price objective on shares of Alcoa from $48.00 to $49.00 and gave the stock an "overweight" rating in a research report on Friday, October 18th. Finally, B. Riley upgraded shares of Alcoa from a "neutral" rating to a "buy" rating and boosted their target price for the company from $41.00 to $50.00 in a report on Thursday, October 17th. Five research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $44.75.

Alcoa Stock Up 6.8 %

The business has a 50 day simple moving average of $38.94 and a 200 day simple moving average of $37.60. The company has a market capitalization of $11.37 billion, a price-to-earnings ratio of -25.01, a PEG ratio of 0.77 and a beta of 2.42. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.41 and a quick ratio of 0.80.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings results on Wednesday, October 16th. The industrial products company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.34. Alcoa had a negative net margin of 2.65% and a negative return on equity of 1.45%. The company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.97 billion. During the same period in the prior year, the firm earned ($1.14) earnings per share. The business's revenue for the quarter was up 11.6% compared to the same quarter last year. As a group, equities analysts predict that Alcoa Co. will post 0.89 earnings per share for the current fiscal year.

Alcoa Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Investors of record on Tuesday, October 29th will be paid a dividend of $0.10 per share. The ex-dividend date is Tuesday, October 29th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.91%. Alcoa's payout ratio is currently -22.73%.

Insider Activity at Alcoa

In related news, EVP Renato Bacchi sold 23,867 shares of the business's stock in a transaction dated Tuesday, October 22nd. The stock was sold at an average price of $42.29, for a total value of $1,009,335.43. Following the transaction, the executive vice president now owns 57,317 shares in the company, valued at $2,423,935.93. The trade was a 29.40 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website.

Institutional Trading of Alcoa

Several hedge funds and other institutional investors have recently made changes to their positions in AA. Impala Asset Management LLC acquired a new stake in Alcoa in the 3rd quarter worth about $6,366,000. Continuum Advisory LLC grew its stake in Alcoa by 1,945.5% during the third quarter. Continuum Advisory LLC now owns 1,125 shares of the industrial products company's stock worth $46,000 after buying an additional 1,070 shares during the period. MML Investors Services LLC purchased a new stake in Alcoa during the 3rd quarter worth $308,000. XTX Topco Ltd boosted its position in shares of Alcoa by 100.6% in the third quarter. XTX Topco Ltd now owns 73,340 shares of the industrial products company's stock worth $2,829,000 after buying an additional 36,772 shares during the period. Finally, United Services Automobile Association raised its holdings in shares of Alcoa by 17.0% during the 3rd quarter. United Services Automobile Association now owns 16,396 shares of the industrial products company's stock valued at $633,000 after buying an additional 2,387 shares during the period.

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.