Investors Purchase Large Volume of Alcoa Call Options (NYSE:AA)

Alcoa (NYSE:AA) was the recipient of unusually large options trading activity on Monday. Stock investors acquired 28,024 call options on the company. This represents an increase of 72% compared to the average daily volume of 16,268 call options.

Insider Buying and Selling

In other news, EVP Tammi A. Jones sold 15,628 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total transaction of $790,776.80. Following the completion of the sale, the executive vice president owned 39,819 shares in the company, valued at approximately $2,014,841.40. This represents a 28.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Renato Bacchi sold 700 shares of the firm’s stock in a transaction 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 directly owned 74,930 shares of the company’s stock, valued at approximately $3,822,928.60. This represents a 0.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Institutional Trading of Alcoa

Several hedge funds and other institutional investors have recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Alcoa during the second quarter valued at $25,000. Western Wealth Management LLC acquired a new position in Alcoa in the 1st quarter worth about $35,000. Caitong International Asset Management Co. Ltd raised its stake in shares of Alcoa by 5,281.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 581 shares in the last quarter. Costello Asset Management INC purchased a new stake in shares of Alcoa during the 1st quarter worth about $53,000. Finally, Harbour Investments Inc. lifted its holdings in shares of Alcoa by 83.2% during the 4th quarter. Harbour Investments Inc. now owns 872 shares of the industrial products company’s stock valued at $46,000 after buying an additional 396 shares during the last quarter.

Alcoa Stock Up 4.5%

NYSE:AA traded up $1.89 on Monday, hitting $43.84. 2,285,289 shares of the company’s stock traded hands, compared to its average volume of 5,874,881. The company has a market cap of $11.57 billion, a PE ratio of 9.01, a price-to-earnings-growth ratio of 0.47 and a beta of 1.74. Alcoa has a 1 year low of $33.77 and a 1 year high of $84.38. The company has a current ratio of 1.53, a quick ratio of 0.92 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average price of $47.71 and a 200-day moving average price of $57.23.

Alcoa (NYSE:AA) last posted its quarterly earnings results on Thursday, July 16th. The industrial products company reported $2.12 EPS for the quarter, missing the consensus estimate of $2.25 by ($0.13). The company had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.99 billion. Alcoa had a return on equity of 18.90% and a net margin of 9.48%.During the same quarter in the prior year, the business posted $0.39 earnings per share. Equities analysts anticipate that Alcoa will post 6.61 EPS for the current fiscal year.

Alcoa Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, August 11th. Alcoa’s payout ratio is currently 8.23%.

Wall Street Analyst Weigh In

AA has been the subject of a number of recent analyst reports. Wall Street Zen upgraded Alcoa from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Zacks Research upgraded Alcoa from a “strong sell” rating to a “hold” rating in a report on Monday, September 14th. JPMorgan Chase & Co. decreased their target price on shares of Alcoa from $55.00 to $52.00 and set a “neutral” rating for the company in a report on Friday, July 17th. Morgan Stanley reissued an “equal weight” rating and issued a $53.00 target price (down from $79.00) on shares of Alcoa in a research report on Wednesday, July 8th. Finally, BMO Capital Markets cut their price target on shares of Alcoa from $60.00 to $55.00 and set a “market perform” rating on the stock in a report on Friday, July 17th. Seven analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $61.42.

About Alcoa

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.