A Few Reasons Behind My Decision To Remain Slightly Bullish On Shares Of Alcoa

Oct. 31, 2013 12:54 PM ETAlcoa Corporation (AA)18 Comments
Heather Ingrassia profile picture
Heather Ingrassia

On Monday October 28, Alcoa (NYSE:AA) announced that it was willing to reopen talks to sell an Italian plant to Swiss industrial group Klesch, after a meeting between trade unions and Italian government representatives. The company had originally decided last year to shut the smelter, citing high power prices for undermining its competitiveness, but political pressure has forced it to maintain the plant while searching for a buyer.

In the wake of Alcoa's announcement, I wanted to take a closer look at the company and highlight a number of reasons behind my decision to remain slightly bullish on shares of AA.

Recent Performance & Trend Behavior

At the close of Tuesday's trading session, shares of AA, which currently possess a market cap of $10.20 billion, a P/E ratio of 38.16, a forward P/E ratio of 22.66, and a dividend yield of 1.26% ($0.12), ended the day at a price of $9.46/share.

Based on their current price of $9.46/share, shares of AA are trading 10.05% above their 20-day simple moving average, 14.12% above their 50-day simple moving average, and 13.47% above their 200-day simple moving average. These numbers indicate a short-term, mid-term, and a long-term uptrend for the stock, which generally translates into a moderate buying mode for both near-term traders and longer-term investors.

Recent Dividend Behavior

Since May 6, 2009, the company has actually maintained its quarterly distribution of $0.03/share over the last four years. The company's forward yield of 1.26% ($0.12) makes this particular aluminum play a considerable option, especially for those who may be in the market for a sustainably conservative stream of quarterly dividend-based income.

Recapping Alcoa's Q3 Earnings

On Tuesday October 8, Alcoa, Inc. announced Q3 net income of $0.11/share which surpassed analysts' expectations of $0.06/share by a margin of $0.05/share. The company's quarterly revenue of $5.8 billion also surpassed analysts' estimates of $5.66 billion by a

This article was written by

Heather Ingrassia profile picture
I'm A 31 Year-Old Stay-At Home Mom, Who Enjoys Writing About And Establishing Income-Driven Strategies Within Numerous Sectors. My Husband And I Are Happily Married (January 2015) And I Currently Reside In The Greater New York Area.

Recommended For You

Comments (18)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.