Sierra Summit Advisors LLC Takes $993,000 Position in Alcoa $AA

Sierra Summit Advisors LLC purchased a new position in shares of Alcoa (NYSE:AA) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 14,965 shares of the industrial products company’s stock, valued at approximately $993,000.

Several other hedge funds have also recently bought and sold shares of the company. Mirabella Financial Services LLP raised its holdings in Alcoa by 12,233.1% during the third quarter. Mirabella Financial Services LLP now owns 40,082,462 shares of the industrial products company’s stock worth $1,318,312,000 after purchasing an additional 39,757,462 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Alcoa by 4.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company’s stock valued at $615,428,000 after purchasing an additional 462,243 shares during the last quarter. State Street Corp grew its holdings in Alcoa by 6.7% in the third quarter. State Street Corp now owns 11,458,529 shares of the industrial products company’s stock valued at $376,871,000 after purchasing an additional 721,063 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Alcoa by 5.5% in the fourth quarter. Geode Capital Management LLC now owns 6,655,655 shares of the industrial products company’s stock valued at $389,621,000 after buying an additional 349,426 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of Alcoa by 211.7% in the fourth quarter. Bank of New York Mellon Corp now owns 6,254,017 shares of the industrial products company’s stock valued at $332,338,000 after buying an additional 4,247,559 shares in the last quarter.

Alcoa Stock Performance

NYSE AA opened at $48.66 on Friday. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36. Alcoa has a fifty-two week low of $28.11 and a fifty-two week high of $84.38. The business has a fifty day moving average of $65.26 and a 200-day moving average of $62.73. The stock has a market cap of $12.84 billion, a price-to-earnings ratio of 12.32 and a beta of 1.63.

Alcoa (NYSE:AA) last posted its quarterly earnings data on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.20). Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The company had revenue of $3.19 billion for the quarter, compared to analysts’ expectations of $3.35 billion. During the same quarter in the prior year, the business posted $2.15 EPS. The company’s revenue for the quarter was down 5.2% compared to the same quarter last year. As a group, analysts predict that Alcoa will post 7.41 earnings per share for the current fiscal year.

Alcoa Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Alcoa’s dividend payout ratio (DPR) is currently 10.13%.

Wall Street Analysts Forecast Growth

AA has been the subject of several research reports. Weiss Ratings raised Alcoa from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, June 17th. Argus set a $73.00 price objective on shares of Alcoa in a research note on Monday, April 27th. Royal Bank Of Canada set a $70.00 target price on shares of Alcoa in a report on Wednesday. Wells Fargo & Company cut their target price on shares of Alcoa from $82.00 to $71.00 and set an “overweight” rating for the company in a research report on Thursday, June 25th. Finally, UBS Group reduced their price target on shares of Alcoa from $80.00 to $68.00 and set a “buy” rating on the stock in a report on Tuesday. Six research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Alcoa has an average rating of “Hold” and a consensus target price of $67.82.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: The acquisition could strengthen Alcoa’s long-term business by making it one of the largest integrated aluminum producers globally and improving control over raw materials and refining capacity. Alcoa (AA) Agrees To Buy South32 Assets To Build A Leading Aluminum Business
• Positive Sentiment: Management says the deal should generate about $900 million in net present value synergies and be accretive to earnings and free cash flow after closing, which supports the bull case if integration goes smoothly. Alcoa to Acquire South32 Aluminum Assets Worldwide
• Neutral Sentiment: Morgan Stanley reaffirmed its Overweight rating and $79 price target, signaling continued analyst confidence despite the market’s reaction. Benzinga report on Morgan Stanley rating
• Negative Sentiment: Shares fell after the announcement because investors are worried about the roughly $4.1 billion upfront price tag, the $3.1 billion cash component, and the issuance of about 17 million new shares, which raises dilution and financing concerns. Alcoa Corporation (AA) to Acquire South32 Aluminum Assets in $4.1B Deal
• Negative Sentiment: The market is also weighing integration risk and leverage from the deal, which helped drive the recent selloff even though the company argues the transaction is strategically attractive. Alcoa Slides After South32 Deal Sparks Financing and Dilution Concerns

Alcoa Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.