Shares of Alcoa Inc (NYSE:AA) are down big in early afternoon trading today after reporting fourth quarter earnings after the bell yesterday. While the stock immediately jumped higher in after hours trading yesterday following the report, today has been an entirely different story. While the company beat analyst expections on EPS, their top line numbers came in a bit weaker than expected.
Alcoa Inc (NYSE:AA) shares started the day lower, before a sudden spike at around 9:45 a.m. ET. Since then, however, the stock has steadily been dropping. Shares are down approximately 25% since the start of the year as investors seem to have lost patience with the lightweigth metals manufacturer. It appears as if low aluminum prices are overshadowing the somewhat optimistic earnings report.
The stock is down 9.19% or $0.74 following the news, hitting $7.26 per share. About 63.38M shares traded hands or 115.58% up from the average. AA has declined 34.69% since June 8, 2015 and is downtrending. It has underperformed the S&P500 by 27.21%.
From a total of 10 analysts covering Alcoa Inc. (NYSE:AA) stock, 7 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 70% of the ratings are positive. The highest target price is $15 while the lowest target price is $9.50. The mean of all analyst targets is $13.05 which is 79.75% above today’s ($7.26) stock price. Alcoa Inc. was the topic of 14 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Gabelli maintained shares on January 12 with a “Buy” rating. S&P Research maintained shares with a”Buy” rating and a $15 target share price in their report from a September 29. Stifel Nicolaus maintained AA stock in a recent report from December 22 with a “Buy” rating. Finally, Nomura downgraded the stock to a “Neutral” rating in a report they issued on a November 9.
The institutional sentiment increased to 1.26 in Q2 2015. It’s up 0.19, from 1.07 in 2015Q2. The ratio improved, as 84 funds sold all their Alcoa Inc shares they owned while 166 reduced their positions. 72 funds bought stakes while 244 increased their total positions. Institutions now own 871.42 million shares which is 11.97% more than the previous share count of 778.25 million in 2015Q2.
Oak Hill Capital Management Llc holds 21.59% of its total portfolio in Alcoa Inc, equating to 26.09 million shares. Baupost Group Llc Ma owns 52.27 million shares representing 8.41% of their total US portfolio. Moreover, Washington State Investment Board has 6.09% of their total portfolio invested in the company, equating to 397,690 shares. The New York-based D.C. Capital Advisors Ltd has a total of 5.34% of their portfolio invested in the stock. Icm Asset Management Inc Wa, a Washington-based fund reported 279,986 shares owned.
Since April 13, 2015, the stock had 2 insider buys, and 0 sales for a total of $85,360 in net activity. Sorrell Martin bought 4,435 shares worth $42,109. Tata Ratan bought 4,555 shares worth $43,251. Harvey Roy Christopher bought 57 shares worth $744.
Alcoa Inc. is engaged in lightweight metals engineering and manufacturing. The company has a market cap of $10.55 billion. The Firm operates in four divisions: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. It has 18.54 P/E ratio. The Company’s products, which include aluminum, titanium and nickel, are used in aircraft, automobiles, commercial transportation, packaging, building and construction, gas and oil, defense, consumer electronics, and industrial applications across the world.