Alcoa Inc (AA) Shares Plunge Again, Days Before Q4 Earnings Report


Shares of Alcoa Inc (NYSE:AA) are trading down considerably this afternoon along with the market in general after concerns in China and North Korea worry traders. As Alcoa Inc (NYSE:AA) prepares to announce a crucial fourth quarter earnings report on January 11, the stock continues to tank. Shares are down 15% in the last five trading days alone, with the largest losses seen today on above-average volume.

While the stock certainly hasn’t started 2016 off very well, solid earnings next week could turn things around quite fast. We will be watching the stock over the next four trading days to see if shares will rebound, or test their November lows. The stock is down 6.85% or $0.64 following the news, hitting $8.64 per share. About 33.97 million shares traded hands or 23.57% up from the average. AA has declined 26.55% since June 2, 2015 and is downtrending. It has underperformed the S&P500 by 21.85%.

From a total of 9 analysts covering Alcoa Inc. (NYSE:AA) stock, 6 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 67% 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 $13.29 which is 53.82% above today’s ($8.64) stock price. Alcoa Inc. was the topic of 12 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus maintained shares on December 22 with a “Buy” rating. Gabelli initiated shares with a”Buy” rating and a $14.50 target share price in their report from an October 5. Nomura downgraded AA stock in a recent report from November 9 to a “Neutral” rating. S&P Research maintained the rating on September 29. S&P Research has a “Buy” rating and a $15 price target on shares. Finally, Deutsche Bank maintained the stock with a “Buy” rating in a report they issued on an October 5.

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 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 $12.04 billion. The Firm operates in four divisions: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. It has 22.03 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.