Kaiser Aluminum (NASDAQ:KALU) Shares Gap Down Following Weak Earnings

Shares of Kaiser Aluminum Corporation (NASDAQ:KALU) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $139.38, but opened at $123.01. Kaiser Aluminum shares last traded at $129.38, with a volume of 96,498 shares.

The industrial products company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.56 by ($0.03). Kaiser Aluminum had a return on equity of 12.88% and a net margin of 3.34%.The company had revenue of $929.00 million for the quarter, compared to the consensus estimate of $902.00 million. During the same period in the previous year, the firm earned $0.33 earnings per share. The company’s revenue was up 21.4% compared to the same quarter last year.

Kaiser Aluminum Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 23rd were paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Friday, January 23rd. Kaiser Aluminum’s payout ratio is presently 55.70%.

Key Stories Impacting Kaiser Aluminum

Here are the key news stories impacting Kaiser Aluminum this week:

• Positive Sentiment: Revenue and year‑over‑year growth were strong — Q4 net sales rose ~21% to $929M, beating estimates and signaling healthy demand for Kaiser’s specialty aluminum products. BusinessWire: Q4 & Full Year 2025 Results
• Positive Sentiment: Analyst/upside momentum coverage: Zacks and other outlets have recently highlighted KALU as a momentum/growth pick and one firm upgraded the stock to a “strong‑buy,” which supports longer‑term bullish interest. TickerReport: Zacks upgrade
• Neutral Sentiment: Short interest data in the February snapshot appears erroneous/zero in the published feed (0 shares, short‑interest ratio 0.0 days), so there’s no clear short‑seller pressure signal from that report today.
• Negative Sentiment: EPS missed estimates: Q4 EPS of $1.53 came in about $0.03 below consensus, which likely triggered profit‑taking despite the revenue beat — a common near‑term catalyst for the stock decline. Zacks: KALU lags Q4 estimates
• Negative Sentiment: Critical/negative analyst write‑ups: a Seeking Alpha piece flagged a rating downgrade narrative for 2026 estimates, adding to short‑term uncertainty and pressure on the stock. Seeking Alpha: 2026E rating downgrade

Analysts Set New Price Targets

KALU has been the topic of several research analyst reports. Wells Fargo & Company set a $120.00 price objective on Kaiser Aluminum and gave the stock an “equal weight” rating in a report on Tuesday, January 13th. JPMorgan Chase & Co. upped their price target on Kaiser Aluminum from $82.00 to $105.00 and gave the company a “neutral” rating in a report on Tuesday, October 28th. Wall Street Zen raised Kaiser Aluminum from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 25th. Zacks Research raised shares of Kaiser Aluminum from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Kaiser Aluminum in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Kaiser Aluminum currently has an average rating of “Moderate Buy” and an average target price of $99.67.

Institutional Investors Weigh In On Kaiser Aluminum

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of Kaiser Aluminum by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 2,117,791 shares of the industrial products company’s stock worth $243,249,000 after purchasing an additional 5,823 shares in the last quarter. State Street Corp boosted its position in shares of Kaiser Aluminum by 31.9% in the second quarter. State Street Corp now owns 1,154,415 shares of the industrial products company’s stock valued at $92,238,000 after acquiring an additional 279,231 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Kaiser Aluminum by 1.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 831,652 shares of the industrial products company’s stock worth $95,528,000 after purchasing an additional 13,909 shares in the last quarter. American Century Companies Inc. grew its position in Kaiser Aluminum by 9.8% during the third quarter. American Century Companies Inc. now owns 588,720 shares of the industrial products company’s stock worth $45,426,000 after buying an additional 52,512 shares in the last quarter. Finally, Wellington Management Group LLP increased its position in shares of Kaiser Aluminum by 1.1% in the third quarter. Wellington Management Group LLP now owns 502,446 shares of the industrial products company’s stock worth $38,769,000 after purchasing an additional 5,623 shares during the period. 99.29% of the stock is owned by institutional investors and hedge funds.

Kaiser Aluminum Trading Down 8.8%

The stock has a market capitalization of $2.06 billion, a P/E ratio of 18.74 and a beta of 1.42. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.08 and a current ratio of 2.48. The firm’s fifty day simple moving average is $125.81 and its 200 day simple moving average is $98.52.

Kaiser Aluminum Company Profile

Kaiser Aluminum Corporation is a U.S.-based producer of semi‐fabricated aluminum products, serving a diverse range of industrial and specialty markets. The company’s offerings include extruded, rolled, and forged aluminum products designed to meet stringent performance requirements in sectors such as aerospace, automotive, defense, electronics, and general engineering. By focusing on high‐value applications, Kaiser Aluminum aims to deliver lightweight, durable solutions that contribute to efficiency and innovation across its customer base.

Operationally, Kaiser Aluminum maintains a network of smelters, extrusion plants, and rolling mills located primarily in North America.