Technicals Say Alcoa Corporation (AA) Is Worth Holding

As of Friday close, Alcoa Corporation’s (NYSE:AA) stock was up $3.75, moving up 6.87 percent to $58.33. The average number of shares traded per day over the past five days has been 8,383,180 shares. 3 times new highs have been achieved over the past 5 days, with a -$2.71 fall in that time frame. In the last twenty days, the average volume was 8,176,465, while in the previous 50 days, it was 7,681,398.


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Since last month, AA stock retreated -33.28%. Shares of the company fell to $53.34 on 05/12/22, the lowest level in the past month. A 52-week high of $98.09 was reached on 03/25/22 after having rallying from a 52-week low of $31.00. Since the beginning of this year, AA’s stock price has dropped by -2.10% or -$1.25, and marked a new high 19 times. However, the stock has declined by -40.53% since its 52-week high.

Alcoa Corporation (AA) last reported insider trading activity 79 days ago on Feb 24. Slaven John D, the EVP & Chief Operations Officer of the company, disposed of 28,326 shares for $75.33 on Feb 24. It resulted in a $2,133,761 divestment by the insider. Elam Harden Sonya sold 1,317 shares at an average price of $78.19 on Feb 18. The insider now owns 33,484 shares following the transaction. On Feb 04, Senior VP & Controller Beerman Molly S. sold 12,500 shares at $64.53 apiece. The transaction was valued at $806,606.

Valuation Metrics

Right now, Alcoa Corporation (AA) has a P/E ratio of about 15.61. The stock’s beta is 2.34. Besides these, the trailing price-to-sales (P/S) ratio of 0.89, the price-to-book (PB) ratio of 2.34, and the price-to-cash flow ratio of 20.67 may also be considered.

The latest dividend of $0.10 per share was paid out, remained unchanged from last year’s $0.10. On Thursday October 14 2021, a $0.07 dividend increase was announced.

Financial Health

In the three months ended September 29, Alcoa Corporation’s quick ratio stood at 0.90, while its current ratio was 1.60, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.38, and the total debt-to-equity ratio was 0.38. On the profitability front, the trailing twelve-month gross margin is 28.10% percent. In the year ended September 29, operating margins totaled 11.10%. Based on annual data, AA earned $3.0 billion in gross profit and brought in $12.15 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.00%. Return on equity (ROE) for the past 12 months was 17.10%.

In Alcoa Corporation’s quarter-end financial report for September 29, it reported total debt of $1.73 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AA’s revenue rose 12.85% to $3.34 billion during the quarter, while net income inched up to $3.29 billion. While analysts expected Alcoa Corporation to report $1.8 quarterly earnings, the actual figure was $2.05 per share, beating the consensus estimate by 13.90%. During the quarter, the company generated $934.0 million in EBITDA. The liabilities of Alcoa Corporation were 9.73 billion at the end of its most recent quarter ended September 29, and its total debt was $1.9 billion. The value of shareholders’ equity is $184.45 million.

Technical Picture

This quick technical analysis looks at Alcoa Corporation’s (AA) price momentum. With a historical volatility rate of 88.49%, the RSI 9-day stood at 36.04% on 13 May.

With respect to its five-day moving average, the current Alcoa Corporation price is down by -4.44% percent or -$2.71. At present, AA shares trade -33.54% below its 20-day simple moving average and +9.83% percent above its 100-day simple moving average. However, the stock is currently trading approximately -29.63% below its SMA50 and +48.16% above its SMA200.

Stochastic coefficient K was 16.07% and Stochastic coefficient D was 11.56%, while ATR was 4.63. Given the Stochastic reading of 25.80% for the 14-day period, the RSI (14) reading has been calculated as 35.21%. As of today, the MACD Oscillator reading stands at -3.11, while the 14-day reading stands at -6.20.

Analyst Ratings

Alcoa Corporation downgraded its rating on Alcoa Corporation (NYSE: AA) to a Neutral in a note to investors on April 21, 2022. The analysts firm previously had a Buy rating on the stock.Alcoa Corporation (AA) has been rated Overweight by analysts. According to 0 brokerage firms, AA is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Alcoa Corporation stock as buy, with 7 recommending it as overweight.

With a median target price of $95.00, the current consensus forecast for the stock is $68.00 – $110.00. Based on these forecasts, analysts predict Alcoa Corporation (AA) will achieve an average price target of $92.54.

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