Zacks Research Downgrades Alcoa (NYSE:AA) to Strong Sell

Alcoa (NYSE:AA) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other research firms also recently issued reports on AA. Wells Fargo & Company boosted their price objective on shares of Alcoa from $71.00 to $72.00 and gave the company an “overweight” rating in a report on Thursday. Wall Street Zen cut shares of Alcoa from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Weiss Ratings upgraded shares of Alcoa from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, June 17th. Royal Bank Of Canada set a $70.00 price target on Alcoa in a research note on Wednesday, July 1st. Finally, Citigroup increased their price target on Alcoa from $54.00 to $76.00 and gave the stock a “buy” rating in a research report on Monday, March 16th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $64.91.

Alcoa Stock Up 0.6%

AA opened at $48.78 on Wednesday. The stock has a fifty day moving average of $63.55 and a 200-day moving average of $62.78. The company has a market capitalization of $12.87 billion, a P/E ratio of 12.35, a P/E/G ratio of 0.70 and a beta of 1.63. Alcoa has a fifty-two week low of $28.11 and a fifty-two week high of $84.38. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48.

Alcoa (NYSE:AA) last released its quarterly earnings results on Thursday, April 16th. The industrial products company reported $1.40 EPS for the quarter, missing the consensus estimate of $1.60 by ($0.20). Alcoa had a net margin of 8.27% and a return on equity of 12.57%. The business had revenue of $3.19 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same quarter last year, the company posted $2.15 earnings per share. The company’s revenue was down 5.2% on a year-over-year basis. On average, equities analysts expect that Alcoa will post 8.07 EPS for the current year.

Hedge Funds Weigh In On Alcoa

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Basepoint Wealth LLC bought a new stake in shares of Alcoa during the 4th quarter worth approximately $25,000. Advisory Services Network LLC acquired a new stake in shares of Alcoa during the 3rd quarter worth approximately $27,000. Raleigh Capital Management Inc. increased its stake in Alcoa by 52,500.0% in the fourth quarter. Raleigh Capital Management Inc. now owns 526 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 525 shares during the last quarter. CoreCap Advisors LLC increased its stake in Alcoa by 74.1% in the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock valued at $30,000 after acquiring an additional 237 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its position in Alcoa by 5,281.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock valued at $31,000 after purchasing an additional 581 shares in the last quarter.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Wells Fargo raised its price target on Alcoa to $72 from $71 and kept an overweight rating, signaling one analyst still sees meaningful upside. Alcoa had its price target raised by Wells Fargo & Company
• Neutral Sentiment: Alcoa was added to the Zacks Rank #5 “Strong Sell” list, which may reinforce bearish sentiment but is a model-based signal rather than a company-specific event. New Strong Sell Stocks for July 9th
• Neutral Sentiment: Benzinga highlighted Alcoa as one of several “oversold” materials stocks with RSI near or below 30, which could attract bargain hunters if investors look for a rebound. New Strong Sell Stocks for July 9th
• Negative Sentiment: Analyst sentiment has deteriorated as Morgan Stanley, JPMorgan, and Bank of America all trimmed their valuation views, citing weaker aluminum fundamentals and a less favorable supply outlook. Morgan Stanley upgrades Ivanhoe Mines, cuts Alcoa and Vale on metals outlook

About Alcoa

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.