Alcoa’s stock (NYSE: AA) has declined 69% since the beginning of this year as the global aluminum prices crashed almost 20% from $1,821/ton in January 2020 to $1,462/ton in May 2020, along with a reduction in demand for aluminum. Additionally, the spread of the novel Coronavirus has also rattled the stock markets and the broader economy.
Why are Alcoa shares down 19% year-to-date?
The shares of Alcoa (NYSE: AA) - a leading producer of aluminum products and alumina - remain down by about 19% year-to-date and are off by around 49% from highs seen in March. The sell-off comes as multiple macroeconomic factors appear to be putting the breaks on the big rally in aluminum prices seen through Covid-19.
What are the price targets for Alcoa (AA) Stock?
15 analysts have issued 1-year price targets for Alcoa's shares. Their forecasts range from $20.00 to $42.00. On average, they expect Alcoa's share price to reach $28.25 in the next twelve months. This suggests a possible upside of 36.3% from the stock's current price. View Analyst Price Targets for Alcoa.
What is the upside for Alcoa's stock?
On average, they anticipate Alcoa's stock price to reach $28.25 in the next twelve months. This suggests a possible upside of 32.8% from the stock's current price. View Analyst Price Targets for Alcoa.
Is Alcoa Corp (AA) a good long-term investment?
According to our live Forecast System, Alcoa Corp stock is an awesome long-term (1-year) investment*. "AA" stock predictions are updated every 5 minutes with latest exchange prices by smart technical market analysis. Q&A about "AA" projections.
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Is Alcoa Corp stock a good buy?
AA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 4.34, while its industry has an average P/E of 6.21. Over the past year, AA's Forward P/E has been as high as 11.74 and as low as 4.34, with a median of 8.36.
Why is aluminum dropping?
Global Aluminum Prices Mirror Copper, Fall Amid Lockdowns As with copper prices, the impacts of China's zero-COVID initiatives significantly dragged down aluminum prices.
What happened to Alcoa?
On November 1, 2016, Alcoa Inc. split into two entities: a new one called Alcoa Corporation, which is engaged in the mining and manufacture of raw aluminum, and the renaming of Alcoa Inc. to Arconic Inc., which processes aluminum and other metals.
Is Alcoa aluminum a buy?
Alcoa is expected to post earnings of $3.66 per share for the current quarter, representing a year-over-year change of +145.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.8%. The consensus earnings estimate of $13.17 for the current fiscal year indicates a year-over-year change of +92.8%.
Will aluminum prices go up in 2021?
According to the World Bank, the aluminum price will increase to $2,000 per metric ton (t) in 2021, a 17% rise from an average of $1,703/t in 2020, and experience moderate growth to $2,050/t in 2022. By 2035, the World Bank predicts aluminum prices will reach $2,400/t.
What is going on with aluminum?
The main reasons for the hike in aluminum are substantial increase in energy and raw material costs, growing demand, decline in China's production capacity, reduction in global inventories and the impact of COVID-19.
Who is the biggest aluminum producer?
ChinalcoLeading aluminum producers worldwide by production output 2020. With around 6.6 million metric tons of aluminum produced, Chinalco was the largest aluminum company in 2020. Hongqiao, Rusal, and Xinfa are also ranked among the largest aluminum producers globally.
Who bought out Alcoa?
Kaiser Aluminum CorporationFOOTHILL RANCH, Calif. , April 01, 2021 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (NASDAQ:KALU), today announced that it has completed its acquisition of Alcoa Warrick LLC , containing all the assets of the Warrick Rolling Mill (“Warrick”), from Alcoa Corporation (“Alcoa”) for a purchase price of $670 million .
Does Arconic own Alcoa?
Arconic Inc. ( Arconic Inc. was spun-off from Alcoa Inc in 2016, is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.
Why is Alcoa stock so low?
Alcoa's aluminum production was down 10% sequentially as it cut back production at its San Ciprián smelter in Spain. That was part of an agreement with workers who went on strike after the company started weighing options to sell or close the facility in the wake of exorbitant energy prices that made it unprofitable.
Will the Alcoa stock rise up?
The 12 analysts offering 12-month price forecasts for Alcoa Corp have a median target of 85.00, with a high estimate of 106.00 and a low estimate of 55.00. The median estimate represents a +72.80% increase from the last price of 49.19.
Why is Alcoa stock going up?
Alcoa is going to see its revenues increase as aluminum inventories continue to decrease and prices continue to rapidly increase. Russia's invasion has led to a massive disruption of the energy markets in Europe. In turn, this has led to the input costs of aluminum to soar in Europe.
Companies Are Starting to Worry About the Russia Issue
Mentions of geopolitics in transcripts of earnings calls by S&P 500 companies have roughly doubled in the past three months from the last quarter of 2021.
Alcoa (AA) is an Incredible Growth Stock: 3 Reasons Why
Alcoa (AA) possesses solid growth attributes, which could help it handily outperform the market.
Arconic reports net loss for 2021, cites inflation
Company executives shared that between the end of 2020 and the end of 2021, the cost of aluminum, which it uses in most of its engineered products, had increased from $2,301 per metric ton to $3,471.
About Alcoa
Alcoa Corp. engages in the production of bauxite, alumina, and aluminum products. It operates through the following segments: Bauxite, Alumina, and Aluminum. The Bauxite segment represents the company' global bauxite mining operations. The Alumina segment includes the company's worldwide refining system, which processes bauxite into alumina.
Alcoa (NYSE:AA) Frequently Asked Questions
11 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Alcoa in the last year. There are currently 3 hold ratings and 8 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" Alcoa stock. View analyst ratings for Alcoa or view top-rated stocks.
What happened
Shares of Alcoa ( AA ) traded down more than 10% on Thursday after the aluminum producer reported fourth-quarter results that were worse than expected. Alcoa said it expects a worldwide surplus in aluminum this year, which it says will weigh on results despite the company's efforts to streamline.
So what
After markets closed Wednesday, Alcoa reported a fourth-quarter loss of $0.31 per share on revenue of $2.44 billion, falling well short of analyst expectations for a loss of $0.22 per share on revenue of $2.49 billion.
Now what
Alcoa has a long-term plan to address these difficult market dynamics, including selling upward of $1 billion worth of noncore assets and shifting away from aluminum production and toward higher-margin businesses.
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