On Tuesday, Gov. Cuomo announced a deal that would require Alcoa Inc (NYSE:AA) to agree to maintain at least 600 full-time employees. The deal with New York State brings Alcoa $70 million in aid over 3.5 years and will ultimately keep the aluminum smelter open.
The much talked about plant will remain running and operating at full capacity, which is approximately 130 tonnes each year.
The stock is up 3.63% or $0.33 hitting $9.42, despite the negative news. About 14.77M shares traded hands. AA has declined 31.08% since April 23, 2015 and is downtrending. It has underperformed by 29.96% the S&P500.
Out of 9 analysts covering Alcoa Inc. (NYSE:AA), 6 rate it “Buy”, 0 “Sell”, while 3 “Hold”. This means 67% are positive. $15 is the highest target while $9.50 is the lowest. The $13.43 average target is 42.57% above today’s ($9.42) stock price. Alcoa Inc. was the topic in 11 analyst reports since August 4, 2015 according to StockzIntelligence Inc. UBS maintained the stock on November 20 with “Buy” rating. Gabelli initiated it with “Buy” rating and $14.50 target price in an October 5 report. Stifel Nicolaus maintained the shares of AA in a report on October 9 with “Buy” rating. S&P Research maintained the firm’s rating on September 29. S&P Research has “Buy” rating and $15 price target. Finally, Deutsche Bank maintained the stock with “Buy” rating in an October 5 report.
The institutional sentiment increased to 1.07 in Q2 2015. Its up 0.02, from 1.05 in 2015Q1. The ratio is positive, as 80 funds sold all Alcoa Inc shares owned while 195 reduced positions. 83 funds bought stakes while 210 increased positions. They now own 778.25 million shares or 0.21% less from 779.92 million shares in 2015Q1.
Oak Hill Capital Management Llc holds 22.35% of its portfolio in Alcoa Inc for 26.09 million shares. D.C. Capital Advisors Ltd owns 1.00 million shares or 6.46% of their US portfolio. Moreover, Washington State Investment Board has 5.41% invested in the company for 397,690 shares. The Georgia-based Concourse Capital Management Llc has invested 3.73% in the stock. First Pacific Advisors Llc, a California-based fund reported 34.88 million shares.
Since April 13, 2015, the stock had 2 insider purchases, and 0 insider sales for $85,360 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 $12.02 billion. The Firm operates in four divisions: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. It has 24.04 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.