Market Analysts see Alcoa Corporation [AA] gaining to $32. Time to buy?

Alcoa Corporation [NYSE: AA] price surged by 6.81 percent to reach at $2.04. The company report on March 9, 2021 that Alcoa Corporation Announces Pricing of Debt Offering.

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Alcoa Corporation (NYSE:AA) (“Alcoa”) announced that Alcoa Nederland Holding B.V. (the “issuer”), a wholly-owned subsidiary of Alcoa, has priced an offering of $500,000,000 aggregate principal amount of 4.125% senior notes due 2029 (the “notes”). The notes will be guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries. The sale of the notes is expected to be completed on March 24, 2021, subject to customary closing conditions.

The issuer intends to use the net proceeds from the issuance of the notes being offered, together with cash on hand, to contribute approximately $500 million to affiliate U.S. defined benefit pension plans applicable to salaried and hourly employees and to redeem in full the outstanding 6.75% Senior Notes due 2024 (the “2024 Notes”), and pay transaction-related fees and expenses. As disclosed in more detail in a concurrent filing on Form 8-K, the issuer has issued a conditional notice of redemption to redeem all $750 million aggregate principal amount outstanding of its 2024 Notes. The 2024 Notes will be redeemed on April 7, 2021 (the “Redemption Date”) at a redemption price equal to 103.375% of the principal amount of the 2024 Notes, plus accrued and unpaid interest to but not including the Redemption Date.

A sum of 7908009 shares traded at recent session while its average daily volume was at 6.26M shares. Alcoa Corporation shares reached a high of $32.42 and dropped to a low of $30.34 until finishing in the latest session at $31.98.

The one-year AA stock forecast points to a potential downside of -32.97. The average equity rating for AA stock is currently 2.50, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Alcoa Corporation [AA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AA shares is $24.05 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AA stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Goldman have made an estimate for Alcoa Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 03, 2021. The new note on the price target was released on September 08, 2020, representing the official price target for Alcoa Corporation stock. Previously, the target price had yet another raise to $10, while Deutsche Bank analysts kept a Hold rating on AA stock. On March 24, 2020, analysts decreased their price target for AA shares from 21 to 7.

The Average True Range (ATR) for Alcoa Corporation is set at 1.90, with the Price to Sales ratio for AA stock in the period of the last 12 months amounting to 0.63. The Price to Book ratio for the last quarter was 1.80, with the Price to Cash per share for the same quarter was set at 8.75. Price to Free Cash Flow for AA in the course of the last twelve months was 143.27 with Quick ratio for the last quarter at 1.10.

AA Stock Performance Analysis:

Alcoa Corporation [AA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.73. With this latest performance, AA shares gained by 46.70% in over the last four-week period, additionally plugging by 124.74% over the last 6 months – not to mention a rise of 245.36% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AA stock in for the last two-week period is set at 70.70, with the RSI for the last a single of trading hit 73.28, and the three-weeks RSI is set at 68.51 for Alcoa Corporation [AA]. The present Moving Average for the last 50 days of trading for this stock 23.37, while it was recorded at 29.59 for the last single week of trading, and 16.70 for the last 200 days.

Insight into Alcoa Corporation Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Alcoa Corporation [AA] shares currently have an operating margin of +5.68 and a Gross Margin at +8.16. Alcoa Corporation’s Net Margin is presently recorded at -1.81.

Return on Total Capital for AA is now 6.88, given the latest momentum, and Return on Invested Capital for the company is -2.87. Return on Equity for this stock declined to -4.58, with Return on Assets sitting at -1.15. When it comes to the capital structure of this company, Alcoa Corporation [AA] has a Total Debt to Total Equity ratio set at 78.74. Additionally, AA Total Debt to Total Capital is recorded at 44.05, with Total Debt to Total Assets ending up at 17.54. Long-Term Debt to Equity for the company is recorded at 76.86, with the Long-Term Debt to Total Capital now at 43.00.

Reflecting on the efficiency of the workforce at the company, Alcoa Corporation [AA] managed to generate an average of -$13,178 per employee. Receivables Turnover for the company is 15.41 with a Total Asset Turnover recorded at a value of 0.64.Alcoa Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.60.

AA Stock EPS

With the latest financial reports released by the company, Alcoa Corporation posted -0.23/share EPS, while the average EPS was predicted by analysts to be reported at -0.24/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 4.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AA.

Alcoa Corporation [AA] Insider Position Details

There are presently around $4,632 million, or 80.20% of AA stock, in the hands of institutional investors. The top three institutional holders of AA stocks are: VANGUARD GROUP INC with ownership of 16,363,905, which is approximately -2.477% of the company’s market cap and around 0.80% of the total institutional ownership; BLACKROCK INC., holding 13,925,422 shares of the stock with an approximate value of $445.33 million in AA stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $294.8 million in AA stock with ownership of nearly 23.497% of the company’s market capitalization.

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Positions in Alcoa Corporation stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 150 institutional holders increased their position in Alcoa Corporation [NYSE:AA] by around 24,623,503 shares. Additionally, 145 investors decreased positions by around 18,691,609 shares, while 85 investors held positions by with 101,511,176 shares. The mentioned changes placed institutional holdings at 144,826,288 shares, according to the latest SEC report filing. AA stock had 71 new institutional investments in for a total of 7,526,488 shares, while 41 institutional investors sold positions of 5,587,232 shares during the same period.

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