Shareholders of Alcoa Inc (NYSE:AA) have a lot to be happy about this morning, after it was announced that the company has signed a $1.5 billion supply contract with General Electric (NYSE:GE) on Monday. The agreement is for the supply of advanced nickel-based superalloy, aluminum and titanium aircraft engine components.
While there wasn’t all that much to be hopeful for as far as Alcoa Inc (NYSE:AA) shareholders go, up until today, this announcement should give the stock the boost it needed with what is expected to be the company’s worst quaterly report since early 2014 coming up.
Manufacturing of the aircraft parts will take place in six states, as well as in Canada and France. Shares of Alcoa Inc (NYSE:AA) are up 2.67% in the pre-market this morning. It will be interesting to see how investors react to this news throughout the day.
The stock decreased 0.06% or $0.01 during the last trading session, hitting $8.06. Approximately 108,077 shares traded hands. AA shares have declined 35.02% since June 5, 2015 and are currently downtrending. It has underperformed the S&P500 by 29.17%.
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 64.89% above today’s ($8.06) 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 increased, 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 purchases, 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 $10.57 billion. The Firm operates in four divisions: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. It has 20.58 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.