Stock on Demand This Week: Alcoa Corporation (AA)


Alcoa Corporation (NYSE:AA) saw an upside of 2.16% to close Tuesday at $52.87 after adding $1.12 on the day. The 5-day average trading volume is 7,445,460 shares of the company’s common stock. It has gained $57.61 in the past week and touched a new high 1 time within the past 5 days. An average of 5,024,200 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 5,138,550.

AA’s 1-month performance is 17.83% or $8.67 on its low of $43.43 reached on 12/28/22. The company’s shares have touched a 52-week low of $33.55 and high of $98.09, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, AA has achieved 16.27% or $7.40 and has reached a new high 8 times. However, the current price is down -46.10% from the 52-week high price.

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Insider Transactions

AA stock investors last saw insider trading activity on Feb 24.Slaven John D (EVP & Chief Operations Officer) most recently sold 28,326 shares at $75.33 per share on Feb 24. This transaction cost the insider $2,133,761. EVP & Chief Ext. Aff. Officer, Elam Harden Sonya, sold 1,317 shares at a price of $78.19 on Feb 18. Then, on Feb 04, Senior VP & Controller Beerman Molly S. sold 12,500 shares at a price of $64.53 per share. This transaction amounted to $806,606.

Valuation Metrics

AA stock has a beta of 2.47. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.73 while the price-to-book (PB) in the most recent quarter is 1.76, with the price to cash flow ratio at 8.14.

Alcoa Corporation’s quick ratio for the period ended December 30 was 1.00, with the current ratio over the same period at 1.80. As well, the company’s long term debt to equity for the quarter ending December 30 was 0.32, while the total debt to equity was 0.32.. In terms of profitability, the gross margin trailing 12 months is 18.00%. The firm’s gross profit as reported stood at $3.0 billion against revenue of $12.15 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 145.17% to -$746.0 million, while revenue of $549.0 million was 173.59% off the previous quarter. Analysts expected AA to announce -$0.92 per share in earnings in its latest quarter, but it posted -$0.7, representing a 23.90% surprise. EBITDA for the quarter stood at more than -$520.0 million. AA stock balance sheet for the quarter ending December 30 shows that total liabilities totaled 7.99 billion, with total debt at $1.81 billion. Shareholders hold equity totaling $176.94 million.

Let’s look briefly at Alcoa Corporation (AA) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 60.66% to suggest the stock is trending Neutral, with historical volatility in this time period at 52.13%.

The stock’s 5-day moving average is $51.72, reflecting a -3.63% or -$1.99 change from its current price. AA is currently trading +20.57% above its 20-day SMA, +4.10% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +29.97% and SMA200 by-39.74%.

Stochastic %K and %D was 57.42% and 53.86% and the average true range (ATR) pointed at 2.63. The RSI (14) points at 59.89%, while the 14-day stochastic is at 64.82% with the period’s ATR at 2.55. The stock’s 9-day MACD Oscillator is pointing at -0.72 and 0.90 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Alcoa Corporation (NYSE: AA), B. Riley Securities reiterated its a Neutral rating for the company but lifted their price target by $41 to $42. Analysts offering their rating for AA stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate AA as a “sell,”, while 9 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 5 have offered a “buy” rating.

What is AA’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $42.00 and a high of $65.00, with their median price target at $52.00. Looking at these predictions, the average price target given by analysts is for Alcoa Corporation (AA) stock is $52.55.


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