Alcoa (NYSE:AA) Shares Gap Down – Here’s Why

Alcoa Co. (NYSE:AA)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $38.78, but opened at $37.60. Alcoa shares last traded at $36.64, with a volume of 2,427,577 shares traded.

Analyst Ratings Changes

Several research firms recently commented on AA. Morgan Stanley boosted their target price on Alcoa from $48.00 to $49.00 and gave the stock an “overweight” rating in a research note on Friday, October 18th. BMO Capital Markets upped their target price on shares of Alcoa to $43.00 and gave the stock a “hold” rating in a research note on Friday, January 17th. Bank of America lifted their price target on shares of Alcoa to $58.00 and gave the stock a “buy” rating in a research note on Friday. Jefferies Financial Group dropped their price objective on shares of Alcoa from $50.00 to $45.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. Finally, UBS Group lifted their price objective on shares of Alcoa from $40.00 to $50.00 and gave the stock a “buy” rating in a research report on Tuesday, October 15th. Four analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $46.36.

Alcoa Price Performance

The firm’s 50 day simple moving average is $40.33 and its 200-day simple moving average is $37.66. The company has a quick ratio of 0.80, a current ratio of 1.41 and a debt-to-equity ratio of 0.47.

Alcoa (NYSE:AA) last announced its earnings results on Wednesday, January 22nd. The industrial products company reported $1.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.91 by $0.13. Alcoa had a return on equity of 5.48% and a net margin of 0.50%. On average, sell-side analysts anticipate that Alcoa Co. will post 4.27 EPS for the current fiscal year.

Institutional Investors Weigh In On Alcoa

A number of institutional investors and hedge funds have recently made changes to their positions in AA. Newbridge Financial Services Group Inc. acquired a new stake in Alcoa in the second quarter valued at about $27,000. UMB Bank n.a. grew its holdings in Alcoa by 481.7% during the third quarter. UMB Bank n.a. now owns 762 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 631 shares during the period. Quarry LP purchased a new position in Alcoa in the third quarter worth $43,000. Continuum Advisory LLC raised its position in Alcoa by 1,945.5% in the third quarter. Continuum Advisory LLC now owns 1,125 shares of the industrial products company’s stock worth $46,000 after acquiring an additional 1,070 shares in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in Alcoa by 399.0% in the fourth quarter. GAMMA Investing LLC now owns 1,447 shares of the industrial products company’s stock valued at $55,000 after acquiring an additional 1,157 shares during the period.

About Alcoa

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.