Kaiser Aluminum (NASDAQ:KALU) Stock Price Down 6.3% on Analyst Downgrade

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU) dropped 6.3% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $160.00 to $125.00. Wells Fargo & Company currently has an equal weight rating on the stock. Kaiser Aluminum traded as low as $107.21 and last traded at $107.7570. 354,047 shares changed hands during mid-day trading, an increase of 43% from the average session volume of 248,273 shares. The stock had previously closed at $114.99.

KALU has been the topic of several other reports. UBS Group raised shares of Kaiser Aluminum from a “neutral” rating to a “buy” rating and raised their target price for the company from $179.00 to $184.00 in a report on Monday, August 31st. Weiss Ratings lowered shares of Kaiser Aluminum from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, September 2nd. KeyCorp lowered their price objective on shares of Kaiser Aluminum from $183.00 to $181.00 and set an “overweight” rating for the company in a research report on Thursday, October 8th. Barclays initiated coverage on Kaiser Aluminum in a research note on Wednesday, October 14th. They set an “overweight” rating and a $180.00 target price for the company. Finally, Wall Street Zen raised Kaiser Aluminum from a “buy” rating to a “strong-buy” rating in a report on Sunday, August 2nd. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Kaiser Aluminum presently has a consensus rating of “Hold” and an average target price of $162.40.

Trending Headlines about Kaiser Aluminum

Here are the key news stories impacting Kaiser Aluminum this week:

• Positive Sentiment: Management reported stronger aerospace demand, rising cash flow and better visibility into 2027. Kaiser also maintained its full-year 2026 outlook and expects conversion-revenue growth toward the high end of its 10%–15% target range. KALU Q3 Earnings Call Highlights Demand Strength & Margin Pressure
• Positive Sentiment: Third-quarter sales increased 43.9% year over year to approximately $1.21 billion, while shipments rose to 300.2 million pounds from 270.2 million. Operating income also improved to $55.2 million from $48.8 million. Kaiser Aluminum Corporation Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The company declared its regular $0.77-per-share quarterly dividend, payable November 13, 2026, and reported total liquidity of $687 million.
• Neutral Sentiment: Fred Stephan is scheduled to replace Keith Harvey as president and chief executive officer on November 1, creating a near-term leadership transition that investors will monitor.
• Negative Sentiment: Adjusted third-quarter EPS of $1.89 missed consensus estimates, while net income fell to $31.0 million from $39.5 million a year earlier. Higher metal costs and operational disruptions compressed profitability despite the substantial increase in revenue. Kaiser Aluminum Misses Q3 Earnings Estimates
• Negative Sentiment: Wells Fargo lowered its price target from $160 to $125 and retained an “equal weight” rating, signaling reduced confidence in near-term upside. The new target still implies potential appreciation from recent levels. Wells Fargo Kaiser Aluminum rating

Hedge Funds Weigh In On Kaiser Aluminum

A number of institutional investors have recently added to or reduced their stakes in KALU. Bank of New York Mellon Corp bought a new position in Kaiser Aluminum in the 2nd quarter valued at approximately $38,353,000. Assenagon Asset Management S.A. acquired a new stake in Kaiser Aluminum in the second quarter valued at approximately $10,659,000. Great Lakes Advisors LLC bought a new stake in shares of Kaiser Aluminum during the second quarter worth $8,045,000. Renaissance Technologies LLC grew its stake in shares of Kaiser Aluminum by 363.2% during the first quarter. Renaissance Technologies LLC now owns 33,814 shares of the industrial products company’s stock worth $4,075,000 after buying an additional 26,514 shares during the last quarter. Finally, Principal Financial Group Inc. grew its stake in shares of Kaiser Aluminum by 32.4% during the first quarter. Principal Financial Group Inc. now owns 101,510 shares of the industrial products company’s stock worth $12,233,000 after buying an additional 24,853 shares during the last quarter. 99.29% of the stock is currently owned by institutional investors and hedge funds.

Kaiser Aluminum Stock Down 6.3%

The firm’s fifty day moving average price is $154.82 and its 200-day moving average price is $165.23. The company has a market capitalization of $1.76 billion, a price-to-earnings ratio of 7.93 and a beta of 1.59. The company has a debt-to-equity ratio of 1.10, a current ratio of 2.50 and a quick ratio of 1.17.

Kaiser Aluminum (NASDAQ:KALU) last announced its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $1.89 EPS for the quarter, missing analysts’ consensus estimates of $2.37 by ($0.48). Kaiser Aluminum had a net margin of 4.85% and a return on equity of 24.27%. The firm had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the previous year, the company posted $1.86 earnings per share. The firm’s revenue was up 43.9% on a year-over-year basis. Sell-side analysts expect that Kaiser Aluminum Corporation will post 13.40 earnings per share for the current fiscal year.

Kaiser Aluminum Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 23rd will be given a $0.77 dividend. The ex-dividend date is Friday, October 23rd. This represents a $3.08 annualized dividend and a yield of 2.9%. Kaiser Aluminum’s dividend payout ratio (DPR) is currently 22.83%.

Kaiser Aluminum Company Profile

Kaiser Aluminum Corporation is a producer of semi-fabricated aluminum products used by manufacturers in the aerospace and defense, automotive, industrial, and consumer products markets. The company supplies aluminum materials designed for applications that require strength, light weight, corrosion resistance, and other specialized performance characteristics.

Its product portfolio includes rolled aluminum sheet and plate, extruded products, forged components, and other fabricated aluminum products.