The outlook and analysis of Alcoa Corporation (AA)’s stock

At the time of writing, Alcoa Corporation [AA] stock is trading at $37.52, up down -4.80%. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The AA shares have lost -13.03% over the last week, with a monthly amount drifted -29.33%, and not seem to be holding up well over a long-time horizon.

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On 13, September 2022, Alcoa announces innovations in alloy development and deployment. In a post published today on Yahoo Finance, New high-strength, 6000 series alloy, A210 ExtruStrongTM debuts, offering thinner, stronger extrusions for a variety of applications.

From an analyst’s perspective:

Alcoa Corporation [NYSE: AA] stock has seen the most recent analyst activity on September 22, 2022, when Wolfe Research downgraded its rating to a Peer Perform. Previously, Morgan Stanley upgraded its rating to Overweight on September 16, 2022, and elevated its price target to $66. On April 21, 2022, downgrade downgraded it’s rating to Neutral but maintained its price target of $84 on the stock. Credit Suisse downgraded its rating to a Neutral and increased its price target to $82 on April 08, 2022. Morgan Stanley downgraded its rating to a Equal-Weight and raised its price target to $100 on March 24, 2022. Deutsche Bank downgraded its rating to Hold for this stock on January 11, 2022, and upped its price target to $65. In a note dated November 17, 2021, Wolfe Research initiated an Outperform rating and iterated a target price of $63 on this stock.

For the past year, the stock price of Alcoa Corporation fluctuated between $39.37 and $98.09. Currently, Wall Street analysts expect the stock to reach $58.38 within the next 12 months. Alcoa Corporation [NYSE: AA] shares were valued at $37.52 at the most recent close of the market. An investor can expect a potential return of 55.6% based on the average price forecast.

Analyzing the AA fundamentals

Gross Margin for this corporation currently stands at +21.08% with Operating Margin at +19.01%, Pretax Margin comes in at +9.64%, and Net Margin reading is +3.45%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 36.54 points at the first support level, and at 35.55 for the second support level. However, for the 1st resistance point, the stock is sitting at 39.45, and for the 2nd resistance point, it is at 41.37.

Alcoa Corporation [AA] reported earnings per share of $2.67 for its fiscal quarter that ended on 6/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $2.31/share, meaning a difference of $0.36 and a surprise factor of 15.60%. By comparison, the stated earnings for the previous quarter ended on 3/30/2022 were $3.06 per share as compared to estimates of $2.93 per share, a difference of $0.13 representing a surprise of 4.40%.

Ratios To Look Out For

It is important to note that Alcoa Corporation [NYSE:AA] has a current ratio of 1.80. Also, the Quick Ratio is 0.95, while the Cash Ratio stands at 0.60. Considering the valuation of this stock, the price to sales ratio is 0.91, the price to book ratio is 2.35 and the P/E (TTM) ratio is 7.40.

Transactions by insiders

We now turn our attention to insider trading, which in the past 3 months has resulted in 1 insider buyings of 1,583 shares and 0 insider sellings of 0 shares. Recent insider trading involved Slaven John D, EVP & Chief Operations Officer, that happened on Feb 24 when 28326.0 shares were sold. EVP & Chief Ext. Aff. Officer, Elam Harden Sonya completed a deal on Feb 18 to sell 1317.0 shares. Meanwhile, Senior VP & Controller Beerman Molly S. sold 12500.0 shares on Feb 04.