Alcoa Corporation [NYSE:AA] prices rallied 1.88% on Wednesday.
With a current price of $12.47, AA is active in the Aluminum industry and it looks to be on-track for a five-day run of 5.25%.
In addition, AA’s high over the last year is $23.47 and the low is $5.16. Over the last two 52 weeks, the company is trading -33.80%, while the S&P 500 is trading 0.55%.
Wait and see
Holding a Market Cap of $2.19 billion, Alcoa Corporation has seen a trading range over the last year of $5.16-$23.47.
For the last five days, AA is up from its last closing price. The average shares trading hands each day is 5.85M, with average 10-day volume coming in at 5.48 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for AA. When we apply the Elder Force Index to Alcoa Corporation, we are seeing an Elder Force Indicator number of 301774.95.
The company’s enterprise value has gone from $3.06B to $2.17B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, AA made a profit of 216.0 million. Alcoa Corporation also saw quarter revenue growth year over year of -22.36%. In addition, the company has operating cash flow of $634.0 million.
Looking at popular technical indicators, the company’s 5-day moving average is 12.03 compared to the 50-day moving average of 13.48. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. AA currently holds a 9-day RSI of 53.07%, while 100-day RSI stands at 48.41%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. AA’s 9-day MACD is 0.24 and the company’s 100-day MACD stands at -0.38.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.38% by insiders and 77.21% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 9.50%, while the second top holder, Blackrock Inc., currently owns 8.23%.
Over the last six months, insiders have bought 200 with the most recent transaction from Nevels James E, Director, with a purchase at price 13.30 per share.
Overall, the recommended rating for AA is Moderate Buy. Currently, the company has 8 analysts watching the stock, and the average quarterly earnings estimate is -1.14. Quarterly revenue estimates are averaging 2.22B with the high estimate reaching 2.35B and the low at 2.14B.
To review, the current 1-year target estimate is sitting at 14.20, while the current price 12.47. Based on this, we expect the stock to rise considering the aforementioned fundamentals.