Traders Purchase Large Volume of Call Options on Alcoa (NYSE:AA)

Alcoa (NYSE:AA) was the target of some unusual options trading activity on Monday. Investors purchased 34,555 call options on the stock. This represents an increase of 38% compared to the typical volume of 25,072 call options.

Alcoa Price Performance

AA stock opened at $63.13 on Tuesday. The stock has a market capitalization of $16.66 billion, a price-to-earnings ratio of 14.28 and a beta of 1.85. The firm’s 50-day moving average price is $60.93 and its two-hundred day moving average price is $49.20. 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 has a 12-month low of $21.53 and a 12-month high of $68.40.

Alcoa (NYSE:AA) last posted its earnings results on Thursday, January 22nd. The industrial products company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.31. Alcoa had a return on equity of 16.19% and a net margin of 9.12%.The firm had revenue of $6.75 billion for the quarter, compared to analysts’ expectations of $3.28 billion. During the same period in the previous year, the firm earned $1.04 earnings per share. The business’s revenue was down 1.1% compared to the same quarter last year. As a group, equities analysts predict that Alcoa will post 4.43 earnings per share for the current year.

Alcoa Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 10th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, March 10th. Alcoa’s dividend payout ratio is presently 9.05%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AA. Rockefeller Capital Management L.P. lifted its stake in shares of Alcoa by 4,124.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 38,233 shares of the industrial products company’s stock valued at $2,032,000 after purchasing an additional 37,328 shares during the period. World Investment Advisors purchased a new stake in Alcoa in the fourth quarter worth $246,000. Corient Private Wealth LLC grew its stake in Alcoa by 30.4% in the fourth quarter. Corient Private Wealth LLC now owns 13,445 shares of the industrial products company’s stock worth $715,000 after purchasing an additional 3,138 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in Alcoa by 5,281.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 592 shares of the industrial products company’s stock worth $31,000 after purchasing an additional 581 shares in the last quarter. Finally, Compound Planning Inc. bought a new position in Alcoa in the fourth quarter worth $306,000.

Alcoa News Roundup

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Middle East supply disruption lifts aluminum prices and benefits producers — Reports that Iranian strikes hit major Gulf aluminum smelters (including Emirates Global Aluminium and Aluminium Bahrain) tightened near‑term supply expectations and pushed benchmark aluminum futures higher, a direct tailwind for primary producers like Alcoa. Article Title
• Positive Sentiment: Broad market reporting and trade coverage show Alcoa leading the sector rally — Multiple news outlets highlighted Alcoa as one of the top movers after the strikes, amplifying buying interest from momentum and sector‐rotation flows. Article Title
• Positive Sentiment: Unusual bullish options activity — Traders bought an above‑average number of AA call options (about 34,555 contracts, ~38% above the usual daily call volume), indicating directional bullish positioning that can accelerate intraday moves.
• Neutral Sentiment: Alcoa’s earnings sensitivity to aluminum prices keeps the stock reactive — Analysts and research notes point out that stronger realized prices can quickly improve margins and EPS, which increases volatility around commodity moves (investors are watching upcoming releases). Article Title
• Neutral Sentiment: Wider market context (oil, bonds, macro calendar) may modulate the rally — Energy and macro headlines are keeping markets on edge into payrolls and holiday weeks, so momentum could fade or strengthen with macro newsflow. Article Title
• Negative Sentiment: Geopolitical escalation risk and supply-chain disruption remain downsides — While higher aluminum prices boost margins, prolonged conflict or logistics disruption could create operational, cost or demand problems and increase share‑price volatility. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AA. UBS Group increased their price target on shares of Alcoa from $48.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, March 12th. JPMorgan Chase & Co. upgraded shares of Alcoa from an “underweight” rating to a “neutral” rating and upped their target price for the stock from $50.00 to $68.00 in a research report on Friday, March 13th. Citigroup increased their target price on Alcoa from $54.00 to $76.00 and gave the company a “buy” rating in a research note on Monday, March 16th. Wells Fargo & Company set a $68.00 price target on Alcoa in a research report on Thursday, March 12th. Finally, Wall Street Zen raised Alcoa from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Alcoa has an average rating of “Hold” and a consensus price target of $50.45.

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.