The Analyst Verdict: Alcoa In The Eyes Of 8 Experts

Ratings for Alcoa AA were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

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

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $28.44, a high estimate of $36.00, and a low estimate of $25.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.5%.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Alcoa. The following summary 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: Analyzing trends, analysts offer qualitative evaluations, ranging 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.

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.

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 the world's largest 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.

Financial Insights: Alcoa

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Alcoa's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -8.73% in revenue growth, reflecting a decrease in 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 -6.46%, 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 -3.59%, the company may encounter challenges in delivering satisfactory 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 -1.2%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.4.

Analyst Ratings: What Are They?

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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