Analyst Report: JPMorgan Chase Lowers Target Price for Alcoa

Written by Amanda

In a recent report, investment analysts at JPMorgan Chase & Co. have lowered their target price for Alcoa (NYSE:AA) from $35.00 to $28.00, indicating a potential downside of 7.25% from the company’s previous close, according to FlyOnTheWall.

As of Friday’s opening, shares of NYSE:AA were priced at $30.19. Alcoa currently maintains a debt-to-equity ratio of 0.28, a quick ratio of 0.87, and a current ratio of 1.80. The company possesses a market capitalization of $5.39 billion and has a price-to-earnings ratio of -3.70 with a beta value of 2.46. Additionally, Alcoa has a fifty-day moving average price sitting at $31.97 and a two hundred-day moving average price at $36.23. Over the past year, its stock has ranged between the lows of $27.76 and the highs of $57.61.

Alcoa Corporation, together with its subsidiaries, is primarily involved in producing and selling bauxite, alumina, and aluminum products across various regions including the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally as well.

The company operates through three segments: Bauxite Production & Mining Operations; Alumina Processing; and Aluminum Smelting & Casting Businesses.

In terms of recent financial performance, Alcoa reported its quarterly earnings on July 19th this year. The results revealed an earnings per share (EPS) figure of ($0.35) for the quarter which exceeded market expectations by $0.24 per share compared to an estimated EPS figure of ($0.59). Additionally, it displayed a negative net margin of 13.37% alongside a negative return on equity (ROE) of 4.36%. The firm generated a revenue of $2.68 billion during the quarter, which aligned with the consensus estimate. However, this reflected a decrease of 26.3% when compared to the same quarter in the previous year when the company earned $2.67 EPS.

Analysts on the sell-side anticipate that Alcoa will post -1.25 earnings per share for the current fiscal year.

This information suggests that Alcoa is facing some challenges in its financial performance and has prompted JPMorgan Chase & Co. to lower its target price for the company. Investors and market participants should keep a close eye on Alcoa’s future developments and subsequent announcements regarding its strategies to navigate these difficulties efficiently and restore growth in its business operations.

As with any investment decision, it is advised that investors conduct thorough research and analysis before making any conclusions or determining their actions regarding Alcoa or any other stock in their portfolio.

Alcoa Corporation



Updated on: 16/09/2023

Price Target

Current $28.85

Concensus $69.75

Low $0.00

Median $65.50

High $0.00

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Social Sentiments

5:00 PM (UTC)

Date:15 September, 2023

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Analyst Ratings

Analyst / firm Rating
Morgan Stanley Buy
Carlos De Alba
Morgan Stanley
David Gagliano
BMO Capital
Carlos De Alba
Morgan Stanley

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Alcoa’s Analyst Recommendations and Institutional Investor Activity

September 15, 2023 – In recent research reports, a number of firms have provided their analysis and ratings on Alcoa (AA), the industrial products company. B. Riley Financial, for example, reduced their price objective on Alcoa from $37.00 to $34.00 and assigned a “neutral” rating to the stock in a research note dated July 21st. Citigroup also adjusted their price target for shares of Alcoa, lowering it from $50.00 to $42.00 while giving the stock a “buy” rating in their report released on the same day. Similarly, Credit Suisse Group decreased the price target on Alcoa from $46.00 to $42.00 and categorized it as an “outperform” rating on July 20th.

Bank of America, meanwhile, amended its price objective for Alcoa from $53.00 to $52.00 in a research note published on June 21st. Finally, Argus downgraded its rating on Alcoa from “buy” to “hold” in its research report issued on July 24th.

Amongst these varied recommendations, three equities research analysts have rated the stock as a sell, six have designated it as a hold, and three have advised buying shares of Alcoa.

According to Bloomberg’s analysis of various opinions and data available in the market space surrounding Alcoa’s performance, the average rating is labeled as “Hold,” with a consensus target price of approximately $38.09.

Looking beyond analyst assessments, institutional investors have been making adjustments to their positions in regards to Alcoa’s stock holdings.

One such institution is Bank Julius Baer & Co. Ltd Zurich which increased its stake in Alcoa by an astonishing 98,060.4% during the second quarter. With this massive increase in shares ownership amounting to over 26 million, the Zurich-based bank now holds a significant interest in the industrial products company, worth approximately $882.6 million.

The Bank of New York Mellon Corp also demonstrated their confidence in Alcoa by raising their holdings by 72.4% during the first quarter. Over this period, they acquired an additional 4,325,754 shares valued at around $438.3 million.

Similarly, State Street Corp decided to boost its position in Alcoa by 3.4% during the same period, obtaining an extra 271,387 shares which brought their total ownership to over $352.1 million.

Furthermore, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main significantly increased their stake in Alcoa by a staggering 4,737.1% during the fourth quarter, acquiring additional shares amounting to over 4 million worth around $208.2 million.

Lastly, Franklin Resources Inc., a well-known player in the investment management industry, enhanced its holdings in Alcoa by 11.5% during the first quarter by purchasing an additional 455,750 shares valued at approximately $188 million.

Overall findings reveal that hedge funds and other institutional investors own a substantial percentage of Alcoa’s stock – specifically about 79.55% of the company’s outstanding shares.

This influx of activity from institutions ultimately reflects varying degrees of perception and confidence in Alcoa’s stock performance within institutional investor circles.

As always with investment decisions though it is crucial for individual investors to exercise caution and conduct thorough research before forming their own opinions and making any financial commitments regarding Alcoa or any other security on the market for that matter

Source: beststocks.com

About the author


Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai