Alcoa (NYSE:AA) Issues Quarterly Earnings Results, Beats Expectations By $0.31 EPS

Alcoa (NYSE:AA) announced its quarterly earnings results on Thursday. The industrial products company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.31, FiscalAI reports. The firm had revenue of $3.70 billion during the quarter, compared to the consensus estimate of $3.77 billion. Alcoa had a return on equity of 18.90% and a net margin of 9.48%.

Alcoa Stock Performance

Shares of AA stock traded up $0.22 during mid-day trading on Thursday, hitting $40.30. The stock had a trading volume of 7,744,808 shares, compared to its average volume of 5,835,597. The firm has a market cap of $10.63 billion, a PE ratio of 8.29, a PEG ratio of 0.51 and a beta of 1.74. The company’s 50-day simple moving average is $47.24 and its 200-day simple moving average is $56.27. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.53 and a quick ratio of 0.92. Alcoa has a fifty-two week low of $35.12 and a fifty-two week high of $84.38.

Alcoa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, August 11th. This represents a $0.40 dividend on an annualized basis and a yield of 1.0%. Alcoa’s dividend payout ratio is presently 8.23%.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Barclays begins coverage with an Overweight rating. The new $55 target signals confidence in Alcoa’s valuation and potential for earnings growth, helping offset investor caution ahead of results. Barclays initiates coverage of Alcoa with overweight rating
• Positive Sentiment: South32 shareholders approved the proposed sale of its aluminum and alumina assets to Alcoa. The approximately $8 billion transaction would expand Alcoa’s operating footprint and could improve scale and strategic positioning in the aluminum market, although completion remains subject to additional conditions. South32 shareholders back board changes and Alcoa asset sale at AGM
• Neutral Sentiment: Investors are focused on Alcoa’s upcoming third-quarter earnings. Analysts expect year-over-year revenue and earnings growth, supported by aluminum sales and smelter restarts. Options markets are also pricing a potentially meaningful post-earnings move, indicating elevated uncertainty. Alcoa gears up to post Q3 earnings
• Negative Sentiment: Alumina weakness and rising costs remain risks to the earnings outlook. These pressures could limit margin expansion or cause results and guidance to fall short of elevated investor expectations, particularly if aluminum prices or restart benefits disappoint. Alcoa earnings preview

Insider Transactions at Alcoa

In other Alcoa news, EVP Renato Bacchi sold 700 shares of Alcoa stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $51.02, for a total value of $35,714.00. Following the sale, the executive vice president owned 74,930 shares of the company’s stock, valued at approximately $3,822,928.60. The trade was a 0.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Tammi A. Jones sold 15,628 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total value of $790,776.80. Following the transaction, the executive vice president owned 39,819 shares in the company, valued at $2,014,841.40. The trade was a 28.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Analysts Set New Price Targets

A number of research analysts recently commented on AA shares. Bank of America dropped their target price on shares of Alcoa from $57.00 to $51.00 and set an “underperform” rating on the stock in a research report on Thursday, July 9th. BMO Capital Markets decreased their price objective on Alcoa from $60.00 to $55.00 and set a “market perform” rating for the company in a report on Friday, July 17th. Wall Street Zen raised shares of Alcoa from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Freedom Broker upped their price target on shares of Alcoa from $64.00 to $76.00 and gave the company a “buy” rating in a research report on Tuesday, September 22nd. Finally, Argus decreased their price target on shares of Alcoa from $73.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $60.54.

Alcoa Company Profile

Alcoa Corporation (NYSE:AA) is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.