Alcoa Corporation [NYSE: AA] surged by $1.34 during the normal trading session on Wednesday and reaching a high of $30.48 during the day while it closed the day at $28.76. The company report on March 25, 2021 that Alcoa Corporation Announces Closing of Debt Offering.
Alcoa Corporation (NYSE:AA) (“Alcoa”) announced that Alcoa Nederland Holding B.V. (the “issuer”), a wholly-owned subsidiary of Alcoa, closed its offering of $500,000,000 aggregate principal amount of 4.125% senior notes due 2029 (the “notes”). The notes are guaranteed on a senior unsecured basis by Alcoa and certain of its subsidiaries.
The issuer intends to use the net proceeds from the issuance of the notes, 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 its 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 completion of the offering of the notes satisfies the condition precedent to the previously announced conditional redemption of the 2024 Notes on April 7, 2021.
Alcoa Corporation stock has also loss -9.59% of its value over the past 7 days. However, AA stock has inclined by 30.08% in the 3 months of the year. Over the past six months meanwhile, it has gained 135.54% and gained 24.77% year-on date.
The market cap for AA stock reached $5.37 billion, with 186.00 million shares outstanding and 184.82 million shares in the current float. Compared to the average trading volume of 6.43M shares, AA reached a trading volume of 9111954 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about 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 $26.68 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 2.40. 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.
Morgan Stanley have made an estimate for Alcoa Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 24, 2021. The new note on the price target was released on March 17, 2021, representing the official price target for Alcoa Corporation stock. Previously, the target price had yet another raise from $19 to $32, while Goldman kept a Buy rating on AA stock.
The Average True Range (ATR) for Alcoa Corporation is set at 2.09, with the Price to Sales ratio for AA stock in the period of the last 12 months amounting to 0.58. The Price to Book ratio for the last quarter was 1.62, with the Price to Cash per share for the same quarter was set at 8.61. Price to Free Cash Flow for AA in the course of the last twelve months was 130.86 with Quick ratio for the last quarter at 1.10.
AA stock trade performance evaluation
Alcoa Corporation [AA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.59. With this latest performance, AA shares gained by 15.50% in over the last four-week period, additionally plugging by 135.54% over the last 6 months – not to mention a rise of 295.60% 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 52.35, with the RSI for the last a single of trading hit 47.96, and the three-weeks RSI is set at 54.56 for Alcoa Corporation [AA]. The present Moving Average for the last 50 days of trading for this stock 24.73, while it was recorded at 29.79 for the last single week of trading, and 17.70 for the last 200 days.
Alcoa Corporation [AA]: An insightful look at the core 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.
Earnings per share (EPS) analysis for Alcoa Corporation [AA] stock
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 Ownership positions
There are presently around $4,165 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 $400.5 million in AA stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $265.12 million in AA stock with ownership of nearly 23.497% of the company’s market capitalization.
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 151 institutional holders increased their position in Alcoa Corporation [NYSE:AA] by around 24,623,614 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 144,826,399 shares, according to the latest SEC report filing. AA stock had 72 new institutional investments in for a total of 7,526,599 shares, while 41 institutional investors sold positions of 5,587,232 shares during the same period.