While Alcoa Corp has underperformed by -0.88%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, AA fell by -21.21%, with highs and lows ranging from $42.95 to $23.07, whereas the simple moving average jumped by 6.69% in the last 200 days.
On January 16, 2024, UBS started tracking Alcoa Corp (NYSE: AA) recommending Sell. A report published by HSBC Securities on December 07, 2023, Initiated its previous ‘Hold’ rating for AA. BofA Securities also Downgraded AA shares as ‘Neutral’, setting a target price of $25 on the company’s shares in a report dated October 23, 2023. JP Morgan July 14, 2023d its ‘Overweight’ rating to ‘Neutral’ for AA, as published in its report on July 14, 2023. Wolfe Research’s report from July 11, 2023 suggests a price prediction of $25 for AA shares, giving the stock a ‘Underperform’ rating. Morgan Stanley also rated the stock as ‘Underweight’.
Analysis of Alcoa Corp (AA)
The current dividend for AA investors is set at $0.40 per share, indicating investors will get a return regardless of how the company performs over the next quarter. Further, the quarter-over-quarter decrease in sales is -3.85%, showing a negative trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of Alcoa Corp’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of -13.96% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.74, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and AA is recording an average volume of 6.11M. On a monthly basis, the volatility of the stock is set at 4.10%, whereas on a weekly basis, it is put at 3.94%, with a gain of 6.44% over the past seven days. Furthermore, long-term investors anticipate a median target price of $30.69, showing decline from the present price of $31.58, which can serve as yet another indication of whether AA is worth investing in or should be passed over.
How Do You Analyze Alcoa Corp Shares?
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 1.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 84.52% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
AA shares are owned by institutional investors to the tune of 84.52% at present.
