Alcoa (NYSE:AA) Shares Gap Up – Here’s What Happened

Alcoa (NYSE:AA)’s share price gapped up prior to trading on Monday . The stock had previously closed at $58.41, but opened at $64.00. Alcoa shares last traded at $65.2710, with a volume of 3,736,781 shares changing hands.

Alcoa News Summary

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Geopolitical supply shock — Iranian strikes on Gulf smelters have tightened global aluminum supply, lifting LME futures and creating immediate pricing tailwinds for producers. Iran’s Attacks on Gulf Aluminum Plants Threaten Supply Crisis
• Positive Sentiment: Direct market reaction — Multiple reports show Alcoa shares rallying after the attacks as investors rotate into U.S. suppliers seen as safer sources of metal and potential margin beneficiaries. Alcoa Corp. (AA) Soars 8% on Aluminum Supply Concerns
• Positive Sentiment: Derivative activity and volume — Unusual options flow (large call purchases) and above-average share volume signal speculative and hedged positioning that can amplify short-term upside. (internal options/volume reports)
• Neutral Sentiment: Analyst views mixed but tilted positive — Some firms have raised targets citing higher aluminum pricing and supply risks, while others remain cautious; median targets sit near current levels, so further upgrades would be a catalyst. Alcoa rallies as aluminum prices stay elevated
• Neutral Sentiment: Industry headwinds exist — Related coverage (Constellium) notes that weaker automotive shipments could cap demand in some segments, an industry-level risk that could limit sustained upside if end-market demand softens. CSTM Gains From Strength in Automotive Structures Unit
• Negative Sentiment: Volatility and mean reversion risk — The rally is materially driven by a geopolitical event; if supply disruptions prove temporary or markets calm, LME prices and Alcoa’s stock could retrace. Alcoa Stock Was Getting Hit by Iran War. Why It’s Now Surging.
• Negative Sentiment: Macroe/operational uncertainty — Continued escalation in the Middle East increases volatility; Alcoa’s earnings sensitivity to realized metal and alumina prices means swings can be sharp and quick. Alcoa Surges 11% After Iran Claims Aluminum Plant Attacks

Analysts Set New Price Targets

AA has been the subject of several recent research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Alcoa in a report on Monday, December 29th. UBS Group lifted their price target on shares of Alcoa from $48.00 to $70.00 and gave the stock a “neutral” rating in a research report on Thursday, March 12th. Zacks Research cut shares of Alcoa from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. B. Riley Financial reissued a “buy” rating on shares of Alcoa in a research note on Friday, January 23rd. Finally, Wells Fargo & Company set a $68.00 price objective on shares of Alcoa in a report on Thursday, March 12th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $50.45.

Alcoa Stock Up 4.9%

The business has a fifty day moving average of $61.01 and a 200 day moving average of $49.44. The company has a quick ratio of 0.87, a current ratio of 1.44 and a debt-to-equity ratio of 0.40. The firm has a market cap of $17.50 billion, a P/E ratio of 15.00 and a beta of 1.85.

Alcoa (NYSE:AA) last posted its earnings results on Thursday, January 22nd. The industrial products company reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.31. The company had revenue of $6.75 billion during the quarter, compared to analyst estimates of $3.28 billion. Alcoa had a return on equity of 16.19% and a net margin of 9.12%.The company’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same period in the previous year, the company earned $1.04 EPS. On average, equities research analysts predict that Alcoa will post 4.43 EPS for the current year.

Alcoa Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 10th were issued a dividend of $0.10 per share. The ex-dividend date was Tuesday, March 10th. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. Alcoa’s payout ratio is currently 9.05%.

Institutional Investors Weigh In On Alcoa

Several hedge funds have recently bought and sold shares of AA. Mirabella Financial Services LLP boosted its position in shares of 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 in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Alcoa by 4.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company’s stock valued at $615,428,000 after buying an additional 462,243 shares in the last quarter. State Street Corp raised its stake in Alcoa by 6.7% during the 3rd quarter. State Street Corp now owns 11,458,529 shares of the industrial products company’s stock worth $376,871,000 after buying an additional 721,063 shares during the period. Geode Capital Management LLC raised its stake in Alcoa by 5.5% during the 4th quarter. Geode Capital Management LLC now owns 6,655,655 shares of the industrial products company’s stock worth $389,621,000 after buying an additional 349,426 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in Alcoa by 211.7% during the fourth quarter. Bank of New York Mellon Corp now owns 6,254,017 shares of the industrial products company’s stock worth $332,338,000 after acquiring an additional 4,247,559 shares in the last quarter. 82.39% of the stock is currently owned by institutional investors and hedge funds.

Alcoa Company 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.