Alcoa (NYSE:AA) Shares Gap Down Following Weak Earnings

Alcoa (NYSE:AA) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $70.41, but opened at $65.05. Alcoa shares last traded at $66.5190, with a volume of 1,522,805 shares.

The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.20). The firm had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.35 billion. Alcoa had a return on equity of 12.86% and a net margin of 8.27%.The firm’s quarterly revenue was down 5.2% on a year-over-year basis. During the same period in the prior year, the company earned $2.15 earnings per share.

Alcoa Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 10th were given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, March 10th. Alcoa’s dividend payout ratio is currently 9.05%.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Management expects sequential improvement in Q2 as the San Ciprián restart completes, shipments recover and product premiums rise — a near-term operational catalyst if execution holds. CEO Interview
• Neutral Sentiment: Profitability and liquidity show strength: adjusted EBITDA was reported around $595M and cash & cash equivalents improved to about $1.35B, which partially cushions near-term risks. Q1 Press Release
• Neutral Sentiment: Analyst views and targets remain mixed (median target ~$75) — some firms bullish on aluminum upside while others are cautious on execution and macro/tariff risk. Analyst & Ratings Summary
• Negative Sentiment: Q1 missed expectations: adjusted EPS and revenue came in below consensus (EPS shortfall and revenue miss), prompting sell-side reaction. Earnings Miss
• Negative Sentiment: Shipment weakness and logistics disruptions: third‑party alumina shipments plunged sequentially and total aluminum shipments fell as the company repositioned inventory and faced delays (Australia cyclone + Middle East conflict cited). That reduces near-term revenue and margin visibility. Shipment Impact
• Negative Sentiment: Tariff and geopolitical headwinds: management flagged a roughly $35M sequential increase in Section 232 tariff costs on U.S. imports from Canada and a modest hit from the Iran conflict, both pressuring Q2 margins. Tariff & Geopolitical Note
• Negative Sentiment: Operating cash flow weakness: Q1 showed negative operating cash flow (a near-term liquidity/working-capital signal investors will watch). Cash Flow Details

Analyst Ratings Changes

A number of brokerages have recently commented on AA. Zacks Research raised shares of Alcoa from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 10th. Wells Fargo & Company set a $68.00 price objective on shares of Alcoa in a research report on Thursday, March 12th. JPMorgan Chase & Co. boosted their price objective on shares of Alcoa from $68.00 to $70.00 and gave the stock a “neutral” rating in a research report on Thursday, April 9th. UBS Group boosted their price objective on shares of Alcoa from $48.00 to $70.00 and gave the stock a “neutral” rating in a research report on Thursday, March 12th. Finally, Wall Street Zen raised shares of Alcoa from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Alcoa has an average rating of “Hold” and a consensus target price of $61.73.

Hedge Funds Weigh In On Alcoa

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Evolve Private Wealth LLC grew its stake in shares of Alcoa by 6.1% in the first quarter. Evolve Private Wealth LLC now owns 6,601 shares of the industrial products company’s stock valued at $438,000 after buying an additional 378 shares in the last quarter. Rockefeller Capital Management L.P. grew its stake in shares of Alcoa by 4,124.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 38,233 shares of the industrial products company’s stock valued at $2,032,000 after buying an additional 37,328 shares in the last quarter. World Investment Advisors bought a new position in shares of Alcoa in the fourth quarter valued at $246,000. Corient Private Wealth LLC grew its stake in shares of Alcoa by 30.4% in the fourth quarter. Corient Private Wealth LLC now owns 13,445 shares of the industrial products company’s stock valued at $715,000 after buying an additional 3,138 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Alcoa by 5,281.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock valued at $31,000 after purchasing an additional 581 shares during the last quarter.

Alcoa Price Performance

The firm has a market capitalization of $17.32 billion, a price-to-earnings ratio of 16.61 and a beta of 1.70. The company’s 50 day moving average is $64.02 and its 200-day moving average is $52.71. The company has a current ratio of 1.44, a quick ratio of 0.87 and a debt-to-equity ratio of 0.40.

Alcoa Company Profile

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.