The Vanguard Group, Inc. recently announced the acquisition of new stake in Alcoa Corporation (NYSE:AA). The institutional investor has increased its shareholding in the Basic Materials company by 1.95% to 17.34 million shares with purchase of 0.33 million shares. This fresh investment now brings its stake to 9.32% valued currently at $225.36 million. In addition, BlackRock Fund Advisors raised its holdings by 3.86 million to 12.51 million shares. And Orbis Investment Management Ltd. has lifted its position by 7.26% or 0.75 million shares – to 11.09 million shares.
With over 2.36 million Alcoa Corporation (AA) shares trading Tuesday and a closing price of $15.05 on the day, the dollar volume was approximately $35.45 million. The shares have shown a positive weekly performance of 1.96% and its price on 08/25/20 lost nearly -0.46%. Currently, there are 186.00M common shares owned by the public and among those 184.87M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for AA have a consensus price objective of $13.10. The analysts have set the share’s price value over the next 12 months at a high of $17.00 and a low of $11.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Alcoa Corporation stock is 2.70 for the next 12 months. The average price target is -14.89% below its last price level and a downside to the estimated low will see the stock lose -36.82% over that period. But an upside of 11.47% will see the stock hit the forecast high price target while mean target price for the stock is $12.50.
Insiders at the company have transacted a total of 42 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 34 of these insider trades were purchases, accounting for 547,398 shares. Insider sales of the common stock occurred on 8 occasions, with total insider shares sold totaling 18,675 shares.
The top 3 mutual fund holders in Alcoa Corporation are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and iShares Russell 2000 ETF. Vanguard Total Stock Market Index owns 5.28 million shares of the company’s stock, all valued at over $68.69 million. The company sold 3202.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard Small Cap Index Fund sold 33240.0 shares to see its total holdings shrink to 4.61 million shares valued at over $59.96 million and representing 2.48% of the shares outstanding. iShares Russell 2000 ETF sold -0.18 million shares to bring its total holdings to over 3.86 million shares at a value of $50.13 million. iShares Russell 2000 ETF now owns shares totaling to 2.07% of the shares outstanding.
Shares of Alcoa Corporation (NYSE: AA) opened at $15.12, unchanged from a prior closing price of $15.12. However, the script later closed the day at $15.05, down -0.46%. The company’s stock has a 5-day price change of 1.96% and 54.20% over the past three months. AA shares are trading -30.03% year to date (YTD), with the 12-month market performance down to -12.35% lower. It has a 12-month low price of $5.16 and touched a high of $23.47 over the same period. Currently, 2.36 million shares have been traded, compared to an average intraday trading volume of 7.91 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.55%, 16.79%, and 11.66% respectively.
Institutional ownership of Alcoa Corporation (NYSE: AA) shares accounts for 75.70% of the company’s 186.00M shares outstanding. Mutual fund holders own 41.47%, while other institutional holders and individual stakeholders account for 7.69% and 33.23% respectively.
It has a market capitalization of $2.91B and a beta (3y monthly) value of 2.34. The earnings-per-share (ttm) stands at -$3.46. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.18% over the week and 4.99% over the month.
Analysts forecast that Alcoa Corporation (AA) will achieve an EPS of -$0.39 for the current quarter, -$0.23 for the next quarter and -$0.24 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.23 while analysts give the company a high EPS estimate of $0.88. Comparatively, EPS for the current quarter was -$0.44 a year ago. Earnings per share for the fiscal year are expected to decrease by -559.70%, and 69.20% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Alcoa Corporation (AA) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 9 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the AA, a number of firms have released research notes about the stock. Deutsche Bank stated their Hold rating for the stock in a research note on June 16, 2020, with the firm’s price target at $10. B. Riley FBR coverage for the Alcoa Corporation (AA) stock in a research note released on March 24, 2020 offered a Neutral rating with a price target of $7. BofA/Merrill was of a view on March 04, 2020 that the stock is Neutral, while Deutsche Bank gave the stock Buy rating on January 17, 2020, issuing a price target of $21.50- $20.50. BMO Capital Markets on their part issued Market Perform rating on December 17, 2019.