Stock Traders Buy High Volume of Call Options on Alcoa (NYSE:AA)

Alcoa Co. (NYSE:AA - Get Free Report) saw unusually large options trading activity on Friday. Stock investors bought 28,953 call options on the stock. This is an increase of approximately 55% compared to the average daily volume of 18,632 call options.

Alcoa Stock Performance

Shares of NYSE AA traded up $2.81 during midday trading on Friday, hitting $44.02. 11,258,637 shares of the company's stock were exchanged, compared to its average volume of 5,873,459. The stock's 50 day moving average price is $38.94 and its 200-day moving average price is $37.60. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.41 and a quick ratio of 0.80. The firm has a market cap of $11.37 billion, a P/E ratio of -25.01, a PEG ratio of 0.77 and a beta of 2.42. Alcoa has a twelve month low of $23.80 and a twelve month high of $46.55.

Alcoa (NYSE:AA - Get Free Report) last released its earnings results on Wednesday, October 16th. The industrial products company reported $0.57 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $2.97 billion. During the same period in the prior year, the firm posted ($1.14) earnings per share. The firm's revenue for the quarter was up 11.6% compared to the same quarter last year. Equities research analysts anticipate that Alcoa will post 0.89 EPS for the current year.

Alcoa Dividend Announcement

The firm 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. This represents a $0.40 annualized dividend and a yield of 0.91%. The ex-dividend date is Tuesday, October 29th. Alcoa's dividend payout ratio is presently -22.73%.

Analyst Upgrades and Downgrades

AA has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective 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 upgraded shares of Alcoa from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $41.00 to $50.00 in a research report on Thursday, October 17th. StockNews.com raised Alcoa from a "sell" rating to a "hold" rating in a report on Thursday, October 17th. BMO Capital Markets boosted their price objective on Alcoa from $42.00 to $45.00 and gave the company a "market perform" rating in a research note on Thursday, October 17th. Finally, Morgan Stanley upped their target price on shares of Alcoa from $48.00 to $49.00 and gave the company 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 given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $44.75.

Insider Buying and Selling

In other news, EVP Renato Bacchi sold 23,867 shares of the company's stock in a transaction on 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 of the company's stock, valued at $2,423,935.93. This represents a 29.40 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Newbridge Financial Services Group Inc. acquired a new stake in Alcoa during the 2nd quarter valued at $27,000. UMB Bank n.a. boosted its stake 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 in the last quarter. Quarry LP acquired a new position in Alcoa in the 3rd quarter valued at $43,000. Continuum Advisory LLC raised its holdings in 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 during the period. Finally, Toronto Dominion Bank lifted its position in Alcoa by 1,501.9% during the 1st quarter. Toronto Dominion Bank now owns 1,698 shares of the industrial products company's stock worth $57,000 after acquiring an additional 1,592 shares during the last quarter.

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.