Argus has recently raised Alcoa Corp (AA) stock to Buy rating, as announced on October 23, 2024, according to Finviz. Earlier, on October 17, 2024, B. Riley Securities had raised the stock from a Neutral to Buy, setting a price target of $50 for AA stock. BofA Securities also raised Buy rating with a price target of $52. Additionally, JP Morgan resumed Neutral rating on September 25, 2024, with a target price of $36. Wolfe Research analysts, in their report published on September 4, 2024, also raised Outperform rating for Alcoa Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Alcoa Corp (AA) Stock Trading Recap
On Friday, Alcoa Corp (AA) stock saw a modest uptick, ending the day at $46.5 which represents a slight increase of $0.62 or 1.35% from the prior close of $45.88. The stock opened at $45.75 and touched a low of $45.15 during the day, reaching a high of $46.57. The volume of shares traded was 1.79 million falling short of the average volume of 5.16 million.
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AA Stock Performance and Moving Averages
In recent trading, Alcoa Corp (AA) stock price has shown some volatility, fluctuating 0.11% over the last five trades and 14.64% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 5.04%, and it has gained 44.86% in the previous three months. Currently, AA is trading at 5.15%, 12.17%, and 27.23% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AA, a Basic Materials sector stock, is trading -2.66% below its 52-week high but remains 95.38% above its 52-week low. The Average True Range (ATR) (14 days) of 1.65 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Alcoa Corp’s Profitability and Valuation Ratios
Alcoa Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of 3.14% and a profit margin of -2.68%, with a gross margin of 5.04%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Alcoa Corp’s market capitalization stands at $12.01 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 14.04. Additionally, the Price-to-Sales Ratio is 1.1, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.29, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.76% of Alcoa Corp (AA)’s shares, while financial institutions hold 74.39%.
Notable insider trades include Bacchi Renato, EVP & Chief Commercial Officer at Alcoa Corp (AA), who sold 23867 shares on Oct 22 ’24, at $42.29 each, totaling $1.01 million. On Mar 13 ’24, Jones Tammi A, EVP & CHRO, sold 26468 shares for $30.78 each, amounting to $0.81 million.
