Alcoa (NYSE:AA) Trading Down 2.9% - Time to Sell?

Alcoa Co. (NYSE:AA - Get Free Report) shares dropped 2.9% during mid-day trading on Friday . The company traded as low as $36.80 and last traded at $36.89. Approximately 357,715 shares traded hands during trading, a decline of 75% from the average daily volume of 1,431,005 shares. The stock had previously closed at $37.99.

Wall Street Analysts Forecast Growth

AA has been the subject of a number of analyst reports. Morgan Stanley raised their target price 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. B. Riley upgraded Alcoa from a "neutral" rating to a "buy" rating and upped their price target for the stock from $41.00 to $50.00 in a research note on Thursday, October 17th. Bank of America raised their price objective on Alcoa to $58.00 and gave the stock a "buy" rating in a report on Thursday, November 28th. StockNews.com upgraded Alcoa from a "sell" rating to a "hold" rating in a report on Thursday, October 17th. Finally, BMO Capital Markets raised their price target on shares of Alcoa from $42.00 to $45.00 and gave the company a "market perform" rating in a report on Thursday, October 17th. Four equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, Alcoa currently has an average rating of "Moderate Buy" and a consensus target price of $46.73.

Alcoa Price Performance

The company has a market capitalization of $9.23 billion, a P/E ratio of -20.29, a PEG ratio of 0.79 and a beta of 2.47. The company has a quick ratio of 0.80, a current ratio of 1.41 and a debt-to-equity ratio of 0.47. The business has a 50 day simple moving average of $41.86 and a 200-day simple moving average of $37.96.

Alcoa (NYSE:AA - Get Free Report) last announced its earnings results 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. The firm had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.97 billion. Alcoa had a negative net margin of 2.65% and a negative return on equity of 1.45%. Alcoa's revenue was up 11.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($1.14) EPS. Analysts predict that Alcoa Co. will post 0.9 EPS for the current fiscal year.

Alcoa Dividend Announcement

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 annualized dividend and a dividend yield of 1.12%. The ex-dividend date was Tuesday, October 29th. Alcoa's dividend payout ratio is presently -22.73%.

Insider Buying and Selling

In related news, EVP Renato Bacchi sold 23,867 shares of the firm's stock in a transaction that occurred on Tuesday, October 22nd. The shares were sold at an average price of $42.29, for a total transaction of $1,009,335.43. Following the completion of the sale, the executive vice president now directly owns 57,317 shares in the company, valued at approximately $2,423,935.93. This trade represents a 29.40 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.08% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AA. Newbridge Financial Services Group Inc. acquired a new position in Alcoa in the 2nd quarter valued at $27,000. UMB Bank n.a. grew its position in shares of Alcoa by 481.7% in the third quarter. UMB Bank n.a. now owns 762 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 631 shares during the last quarter. Quarry LP bought a new position in shares of Alcoa in the third quarter worth about $43,000. Continuum Advisory LLC lifted its position in shares of Alcoa by 1,945.5% during the 3rd quarter. Continuum Advisory LLC now owns 1,125 shares of the industrial products company's stock worth $46,000 after purchasing an additional 1,070 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Alcoa by 399.0% during the 4th quarter. GAMMA Investing LLC now owns 1,447 shares of the industrial products company's stock worth $55,000 after purchasing an additional 1,157 shares during the last quarter. 82.39% of the stock is owned by institutional investors and hedge funds.

About Alcoa

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.