Analysts at Credit Suisse, reiterated Alcoa Corporation (NYSE:AA) at Outperform on September 25 but moved PT for the stock from $65 to $58. Analysts at Berenberg, started covering the stock on September 21 with a Buy rating. The stock won favor of B. Riley FBR analysts who expressed their confidence in it using an upgrade from Neutral to Buy on September 12. Credit Suisse, reiterated their call for Outperform, on July 19. On the other hand, they had set new target price to $65 versus $69.
Alcoa Corporation (AA) grew as high as $29.68 on Thursday before closing at $29.65. The -2.47 percent plunge dragged its market cap to $5.51B. The shares went down as low as $28.12 before recovering. Trading activity significantly improved as the volume at ready counter increased to 4,241,652 shares versus 3,573,680 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,031,543 shares. The stock is now -2.05% above against its bear-market low of $30.27 on December 06, 2018. It has retreated -110.29% since it’s 52-week high of $62.35 reached in April. Now the market price is down -28% on the year and down -44.96% YTD.
AA’s 50 day simple moving average (SMA 50) price is $35.94 and its 200-day simple moving average (SMA 200) price is $44.2. The company’s stock currently has a total float of 185.99M shares. Its weekly volatility is hovering around 6.04% and felt 5.05% volatility in price over a month. On the upside, the share price will test short term resistance at around $30.18. On a downside, the stock is likely to find some support, which begins at $28.62. The failure to get near-term support could push it to $27.59.
Separately, it has been reported that multiple insider activity took place at Alcoa Corporation (AA). Exec VP and COO Sigurdsson Tomas Mar sold 10,000 shares for $46,832 in transaction occurred on 2018/01/31. After making this transaction, the Exec VP and COO owns a direct stake of 513,700 shares, worth $1,388,569, as per the last closing price. On 2018/01/22 Oplinger William F, Executive VP & CFO at AA, dumped 229,475 shares at an average price of $52.86 per share. The selling total is valued at $3,043,039.
Former 10% owner, Arconic Inc. had divested 23,353,000 shares for $12,958,767 through a trade on 2017/02/14. Following this activity, the insider holds 888,000,000 shares worth $384,000,000 as of recent close. Wall Street’s most bullish Alcoa Corporation (NYSE:AA) analysts are predicting the share price to blow past $75 per share during the next 12 months. The current median share price forecast by them is $52.5, suggesting that the stock could increase 77.07% in that time frame. The average price target of $51.57 calls for a nearly 73.93% increase in the stock price.
When looking at valuations, Alcoa Corporation (AA) has a pricey P/E of 1022.41x as compared to industry average of 14.32x. Moreover, it trades for 7.51 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.06x price/book and 0.42x price/sales. Compared to others, Alcoa Corporation is in a different league with regards to profitability, having net margins of -0.1%. To put some perspective around this, the industry’s average net margin is 17.86%. AA’s ROE is -0.2%, which is also considerably worse than the industry’s ROE of 18.53%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 0.35.