Jul. 8 at 12:38 AM
$AA Heads up alert! upcoming earnings on Wednesday, 7/16/2025 for
$AA
Bearish (3.1)
Alcoa Corporation (NYSE: AA) has recently experienced a challenging period, marked by the completion of its divestment of a 25.1% stake in the Ma’aden JV for a significant sum of
$1.3 billion, receiving 86 million Ma’aden shares.
This move is part of Alcoa's strategic initiatives to streamline operations and focus on core activities.
However, the market has reacted cautiously, as evidenced by the reduction in Alcoa's price target by B.
Riley, from
$43 to
$38, due to forward curve updates and tariff impact adjustments.
The company continues to face headwinds from increased tariffs on aluminum, which are expected to cost approximately
$90 million in the current quarter.
Despite these challenges, Alcoa's stock saw a notable rise of 12.1% over the past month, though there are concerns regarding falling earnings estimates and rising cost pressures.
Alcoa has also been actively engaging with the market through planned participation in the Wolfe Research Materials of the Future Conference, and the release of its 2024 Sustainability Report, which highlights its commitment to building resilience within its global business.
The company is currently trading at a valuation that reflects these mixed signals, with competitive metrics compared to peers in the aluminum sector, but the market sentiment remains cautious given the external economic pressures.
Earnings Report Summary:
Alcoa is scheduled to release its second quarter 2025 financial results on July 16, 2025.
The upcoming earnings report is expected to provide insights into the impact of recent strategic initiatives, including the Ma’aden JV divestment, and the adjusted tariff costs.
Historically, Alcoa's performance has been closely tied to global aluminum prices and demand, which have been volatile due to geopolitical tensions and trade policies.
Analyst consensus estimates anticipate that Alcoa may face pressure on its earnings per share (EPS) growth due to increased operational costs and tariff impacts.
The potential impact on the stock will largely depend on how well Alcoa can mitigate these cost pressures and leverage its streamlined operations for improved efficiency and profitability.
Sector Performance:
The aluminum sector, to which Alcoa belongs, is currently navigating a complex landscape influenced by global economic conditions and trade policies.
The imposition of higher tariffs has created a divergent impact within the industry; while it poses significant cost challenges for major producers like Alcoa, it has simultaneously benefited domestic competitors such as Century Aluminum.
The sector is also facing broader issues such as fluctuating demand from key industries like automotive and construction, which are closely tied to macroeconomic indicators.
Overall, the aluminum sector is experiencing a period of uncertainty, with companies needing to adapt swiftly to changing market dynamics and regulatory environments to maintain competitiveness.
- Funds were net sellers of
$AA during the previous reporting quarter.
- Top 5 funds with large holdings in
$AA:
- Sourcerock Group LLC, MV:
$95MM. Fund Rank: 55%
www.sourcerocklp.com
- Arga Investment Management LP, MV:
$90MM. Fund Rank: 87%
https://www.argainvest.com/
- Slate Path Capital LP, MV:
$83MM. Fund Rank: 83%
- Masters Capital Management LLC, MV:
$31MM. Fund Rank: 64%
www.masterscapital.com
- Encompass Capital, MV:
$8MM. Fund Rank: 60%
- Last 10 days performance: 5%
- Last 30 days performance: 6%
- Last 90 days performance: 33%
Some of the latest news articles:
- Title: Constellation Projects
$20 Million Hit From Aluminum Tariff
Publication Date: 7/2/2025 4:35:22 PM, Source: yahoo
URL: https://finance.yahoo.com/news/constellation-sees-20-million-hit-154955817.html?.tsrc=rss
- Title: Alcoa completes divestment of 25.1% stake in Ma’aden JV for
$1.3bn
Publication Date: 7/2/2025 8:56:01 AM, Source: yahoo
URL: https://www.mining-technology.com/news/alcoa-divestment-stake-maaden-jv/?.tsrc=rss
- Title: Alcoa Announces Closing of Ma’aden Transaction
Publication Date: 7/1/2025 8:15:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/alcoa-announces-closing-ma-aden-201500533.html?.tsrc=rss
- Title: Alcoa price target lowered to
$38 from
$43 at B. Riley
Publication Date: 6/25/2025 1:45:33 PM, Source: yahoo
URL: https://finance.yahoo.com/news/alcoa-price-target-lowered-38-134533481.html?.tsrc=rss
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