Cracking The Code: Understanding Analyst Reviews For Alcoa

6 analysts have shared their evaluations of Alcoa AA during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $30.83, a high estimate of $36.00, and a low estimate of $27.00. Surpassing the previous average price target of $29.60, the current average has increased by 4.16%.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Alcoa among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alcoa. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Alcoa compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Alcoa's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Alcoa's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Alcoa analyst ratings.

All You Need to Know About Alcoa

Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is a bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.

Breaking Down Alcoa's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Alcoa faced challenges, resulting in a decline of approximately -2.55% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Alcoa's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -5.78%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alcoa's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.42%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Alcoa's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.07%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Alcoa's debt-to-equity ratio is below the industry average at 0.45, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.