Alcoa Corporation (AA) looking to reclaim success with recent performance

Alcoa Corporation (NYSE: AA) stock fell -3.70% on Wednesday to $34.35 against a previous-day closing price of $35.67. With 3.44 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.72 million shares. During the session, the Aluminum company that operates in wider Basic Materials sector, reached to the highest price of $35.36 whereas the lowest price it dropped to was $34.21. The 52-week range on AA shows that it touched its highest point at $67.52 and its lowest point at $33.55 during that stretch. It currently has a 1-year price target of $49.24. With its current market cap of 6.25 billion, AA has annualized dividend of $0.40 while the current yield stands at 1.16%. Beta for the stock currently stands at 2.43.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AA was down-trending over the past week, with a drop of -6.51%, but this was down by -3.92% over a month. Three-month performance dropped to -28.38% while six-month performance fell -26.33%. The stock lost -45.60% in the past year, while it has lost -24.46% so far this year. A look at the trailing 12-month EPS for AA yields -4.73 with Next year EPS estimates of 3.81. For the next quarter, that number is -0.01. This implies an EPS growth rate of -130.10% for this year and 330.14% for next year. EPS is expected to grow by 12.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -19.70%.

Float and Shares Shorts:

At present, 178.00 million AA shares are outstanding with a float of 175.35 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.81 million, which was 3.26% higher than short shares on Mar 30, 2023. In addition to Mr. Roy C. Harvey as the firm’s Pres, CEO & Director, Mr. William F. Oplinger serves as its Exec. VP & COO.

Institutional Ownership:

Through their ownership of 84.88% of AA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.53% of AA, in contrast to 47.64% held by mutual funds. Shares owned by individuals account for 37.36%. As the largest shareholder in AA with 10.00% of the stake, The Vanguard Group, Inc. holds 17,839,694 shares worth 17,839,694. A second-largest stockholder of AA, BlackRock Fund Advisors, holds 15,046,848 shares, controlling over 8.44% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in AA, holding 8,273,477 shares or 4.64% stake. With a 3.11% stake in AA, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 5,538,051 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.10% of AA stock, is the second-largest Mutual Fund holder. It holds 5,522,357 shares valued at 205.1 million. Vanguard Small Cap Index Fund holds 2.62% of the stake in AA, owning 4,666,135 shares worth 173.3 million.


An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, AA reported revenue of $3.64B and operating income of $657.00M. The EBITDA in the recently reported quarter was $1.02B and diluted EPS was $2.95.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AA analysts setting a high price target of $65.00 and a low target of $37.00, the average target price over the next 12 months is $49.63. Based on these targets, AA could surge 89.23% to reach the target high and rise by 7.71% to reach the target low. Reaching the average price target will result in a growth of 44.48% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded AA stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 1,775 shares were bought while 0 shares were sold. The number of buy transactions has increased to 36 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 985,359 while 717,302 shares were sold.

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