Peeling Back The Layers: Exploring Alcoa Through Analyst Insights

Alcoa AA underwent analysis by 8 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $44.5, a high estimate of $55.00, and a low estimate of $35.00. Observing a 6.87% increase, the current average has risen from the previous average price target of $41.64.

Breaking Down Analyst Ratings: A Detailed Examination

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 frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alcoa. This information provides 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 explore the dynamics of price targets, providing estimates for the future value of Alcoa's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Alcoa's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Alcoa analyst ratings.

Get to Know Alcoa Better

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: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Alcoa showcased positive performance, achieving a revenue growth rate of 8.27% as of 30 June, 2024. This reflects 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.69%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Alcoa's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.51%, 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 0.14%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.65, Alcoa faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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