Alcoa Corporation [AA] Stock trading around $42.73 per share: What’s Next?


Alcoa Corporation [NYSE: AA] loss -4.68% or -2.1 points to close at $42.73 with a heavy trading volume of 4839719 shares. The company report on July 8, 2022 that Alcoa Increases Casting Capability in North America With Investment in Canada.

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Alcoa Corporation (NYSE: AA) today announced that construction will soon begin on a project to increase the casting capabilities at its Deschambault smelter in Canada to include standard ingots.

The new casting equipment will be constructed in an existing building, with the project fully complete in the first quarter of 2023. The output from the approximately $8 million return-seeking capital investment will complement the site’s two existing vertical casting pits, which exclusively cast T-bar ingots.

It opened the trading session at $43.82, the shares rose to $44.38 and dropped to $42.59, the range by which the price of stock traded the whole day. The daily chart for AA points out that the company has recorded -26.89% loss over the past six months. However, it is still -37.84% lower than its most recent low trading price.

If we look at the average trading volume of 7.14M shares, AA reached to a volume of 4839719 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $73.95 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 2.10. 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.

Citigroup have made an estimate for Alcoa Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 21, 2022. While these analysts kept the previous recommendation, Credit Suisse raised their target price from $68 to $82. The new note on the price target was released on April 08, 2022, representing the official price target for Alcoa Corporation stock. Previously, the target price had yet another raise from $78 to $100, while Morgan Stanley kept a Equal-Weight rating on AA stock. On January 11, 2022, analysts increased their price target for AA shares from 60 to 65.

The Average True Range (ATR) for Alcoa Corporation is set at 3.05, with the Price to Sales ratio for AA stock in the period of the last 12 months amounting to 0.64. The Price to Book ratio for the last quarter was 1.72, with the Price to Cash per share for the same quarter was set at 8.27. Price to Free Cash Flow for AA in the course of the last twelve months was 14.83 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for AA stock

Alcoa Corporation [AA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.58. With this latest performance, AA shares dropped by -31.39% in over the last four-week period, additionally sinking by -26.89% over the last 6 months – not to mention a rise of 14.13% 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 33.45, with the RSI for the last a single of trading hit 32.46, and the three-weeks RSI is set at 34.91 for Alcoa Corporation [AA]. The present Moving Average for the last 50 days of trading for this stock 56.19, while it was recorded at 43.59 for the last single week of trading, and 61.46 for the last 200 days.

Alcoa Corporation [AA]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Alcoa Corporation [AA] shares currently have an operating margin of +19.01 and a Gross Margin at +21.08. Alcoa Corporation’s Net Margin is presently recorded at +3.45.

Return on Equity for this stock inclined to 10.75, with Return on Assets sitting at 2.87.

Alcoa Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.60.

An analysis of insider ownership at Alcoa Corporation [AA]

There are presently around $6,640 million, or 85.50% of AA stock, in the hands of institutional investors. The top three institutional holders of AA stocks are: BLACKROCK INC. with ownership of 20,084,162, which is approximately 13.511% of the company’s market cap and around 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 18,087,600 shares of the stock with an approximate value of $772.88 million in AA stocks shares; and FMR LLC, currently with $391.9 million in AA stock with ownership of nearly 563.569% of the company’s market capitalization.

Positions in Alcoa Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 303 institutional holders increased their position in Alcoa Corporation [NYSE:AA] by around 36,505,622 shares. Additionally, 295 investors decreased positions by around 32,929,549 shares, while 80 investors held positions by with 85,955,742 shares. The mentioned changes placed institutional holdings at 155,390,913 shares, according to the latest SEC report filing. AA stock had 163 new institutional investments in for a total of 15,679,170 shares, while 92 institutional investors sold positions of 5,578,056 shares during the same period.