Stock Traders Buy Large Volume of Alcoa Call Options (NYSE:AA)

Alcoa (NYSE:AA) saw some unusual options trading on Friday. Traders purchased 31,983 call options on the company. This represents an increase of approximately 68% compared to the typical volume of 19,062 call options.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on AA. B. Riley Financial reduced their target price on Alcoa from $92.00 to $80.00 and set a “buy” rating on the stock in a research note on Tuesday, July 7th. Wells Fargo & Company lowered their target price on shares of Alcoa from $72.00 to $71.00 and set an “overweight” rating for the company in a research note on Friday. Argus set a $73.00 price target on shares of Alcoa in a report on Monday, April 27th. Royal Bank Of Canada set a $70.00 price target on shares of Alcoa in a research note on Wednesday, July 1st. Finally, UBS Group decreased their price objective on shares of Alcoa from $80.00 to $68.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Alcoa currently has an average rating of “Hold” and a consensus target price of $62.73.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa reported record quarterly revenue and highlighted strong operational performance, including progress on smelter restarts and improved aluminum EBITDA. Article Title
• Positive Sentiment: Management outlined about $900 million in net present value synergies tied to the South32 asset deal, supporting its longer-term growth strategy. Article Title
• Positive Sentiment: Unusually heavy call-option buying suggests some traders are positioning for a rebound after the post-earnings selloff. Article Title
• Neutral Sentiment: Several analysts trimmed price targets, but JPMorgan and Wells Fargo both kept ratings that were not outright bearish, signaling a wait-and-see stance rather than a major downgrade cycle.
• Negative Sentiment: Alcoa missed Q2 earnings estimates, reporting $2.12 per share versus the $2.25 consensus, which disappointed investors despite better year-over-year results. Article Title
• Negative Sentiment: The company lowered 2026 alumina production guidance by 200,000 to 300,000 metric tons due to Pinjarra refinery issues, raising concerns about near-term earnings pressure. Article Title

Alcoa Trading Down 6.4%

AA opened at $43.84 on Friday. The stock’s fifty day moving average is $61.70 and its two-hundred day moving average is $62.46. The company has a market capitalization of $11.57 billion, a P/E ratio of 9.02, a PEG ratio of 0.50 and a beta of 1.63. Alcoa has a 52 week low of $28.11 and a 52 week high of $84.38. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 0.36.

Alcoa (NYSE:AA) last issued its earnings results on Thursday, July 16th. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts’ consensus estimates of $2.25 by ($0.13). Alcoa had a net margin of 9.48% and a return on equity of 19.57%. The firm had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. During the same period last year, the firm earned $0.39 earnings per share. Analysts forecast that Alcoa will post 6.93 earnings per share for the current year.

Alcoa Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Tuesday, May 19th were paid a dividend of $0.10 per share. The ex-dividend date was Tuesday, May 19th. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. Alcoa’s dividend payout ratio (DPR) is currently 10.13%.

Institutional Trading of Alcoa

A number of hedge funds have recently added to or reduced their stakes in the business. Checchi Capital Advisers LLC lifted its position in shares of Alcoa by 3.4% during the first quarter. Checchi Capital Advisers LLC now owns 5,138 shares of the industrial products company’s stock valued at $341,000 after buying an additional 170 shares during the last quarter. Essential Partners LLC grew its position in shares of Alcoa by 0.9% in the 1st quarter. Essential Partners LLC now owns 20,525 shares of the industrial products company’s stock worth $1,361,000 after buying an additional 193 shares during the last quarter. Prime Capital Investment Advisors LLC raised its stake in shares of Alcoa by 1.9% during the 4th quarter. Prime Capital Investment Advisors LLC now owns 10,682 shares of the industrial products company’s stock worth $568,000 after acquiring an additional 204 shares in the last quarter. Northwestern Mutual Investment Management Company LLC raised its stake in shares of Alcoa by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 57,940 shares of the industrial products company’s stock worth $3,079,000 after acquiring an additional 229 shares in the last quarter. Finally, CoreCap Advisors LLC lifted its position in Alcoa by 74.1% during the fourth quarter. CoreCap Advisors LLC now owns 557 shares of the industrial products company’s stock valued at $30,000 after acquiring an additional 237 shares during the last quarter.

About Alcoa

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.