Expert Ratings For Alcoa

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

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Alcoa, revealing an average target of $40.64, a high estimate of $50.00, and a low estimate of $31.00. Observing a 24.24% increase, the current average has risen from the previous average price target of $32.71.

Diving into Analyst Ratings: An In-Depth Exploration

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Alcoa. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Alcoa's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Alcoa analyst ratings.

Unveiling the Story Behind 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.

Alcoa's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Alcoa faced challenges, resulting in a decline of approximately -2.66% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Alcoa's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -9.7%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alcoa's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.11%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.77%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Alcoa's debt-to-equity ratio surpasses industry norms, standing at 0.64. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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