The Analyst Verdict: Alcoa In The Eyes Of 10 Experts

Alcoa AA underwent analysis by 10 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Alcoa and provided 12-month price targets. The average target is $41.2, accompanied by a high estimate of $50.00 and a low estimate of $36.00. Observing a 1.43% increase, the current average has risen from the previous average price target of $40.62.

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of Alcoa's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Alcoa. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alcoa compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Alcoa's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Alcoa's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Alcoa analyst ratings.

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.

Alcoa: Delving into Financials

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.

Revenue Growth: Alcoa's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 8.27%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Net Margin: Alcoa's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.69%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Alcoa's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.51%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Alcoa's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.14%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Alcoa's debt-to-equity ratio surpasses industry norms, standing at 0.65. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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