|Bid||11.71 x 2900|
|Ask||11.72 x 1400|
|Day's Range||11.55 - 12.18|
|52 Week Range||5.16 - 23.47|
|Beta (5Y Monthly)||2.30|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 14, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.20|
The formal consultation process regarding the San Ciprián aluminum plant in Spain officially ended on September 28, 2020, without an agreement with the workers’ representatives. Alcoa will now have up to 15 days to determine and announce a decision regarding the smelter’s 228,000 metric tons of annual capacity.
Over the past three months, shares of Alcoa (NYSE: AA) moved higher by 2.85%. Before having a look at the importance of debt, let us look at how much debt Alcoa has.Alcoa's Debt Based on Alcoa's balance sheet as of July 29, 2020, long-term debt is at $1.80 billion and current debt is at $1.00 million, amounting to $1.80 billion in total debt. Adjusted for $965.00 million in cash-equivalents, the company's net debt is at $836.00 million.Investors look at the debt-ratio to understand how much financial leverage a company has. Alcoa has $13.30 billion in total assets, therefore making the debt-ratio 0.14. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 40% might be higher for one industry and normal for another.Importance Of Debt Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.Interest-payment obligations can impact the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.See more from Benzinga * A Look Into E W Scripps's Debt * Recap: Dynatronics Q4 Earnings * Darden Restaurants: Q1 Earnings Insights(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Alcoa Corp. has unveiled the industry’s first low-carbon and smelter-grade alumina brand, EcoSource and expanded its alumina offerings. EcoSource, which will join Alcoa’s Sustana family of products, is produced “with no more than 0.6 tons of carbon dioxide equivalents (CO2e) per ton of alumina, two times better than the industry’s average of 1.2 tons of CO2e.”Alcoa (AA), which produces bauxite, alumina, and aluminum products, has the largest third-party alumina business in the world. Its refineries produce the industry’s lowest carbon footprint. According to Alcoa’s CEO Roy Harvey, EcoSource along with Alcoa’s line of Sustana products "can provide advantages for customers who want to improve their environmental footprint."On Sept. 15, Credit Suisse analyst Curt Woodworth raised Alcoa's price target to $18 (54.6% upside potential) from $17 and maintained a Buy rating on the stock. The analyst is optimistic about the company’s efforts to capture $900 million of targeted cash savings. Woodworth added that “The restructurings at the corporate and smelter level have structurally lowered the cost structure and Alcoa is on track to achieve the $75-100mm of working capital and $100mm of cost down targets set in 1Q.”The analyst estimates that “EBITDA upside is likely in 2H given the recovery in aluminum/alumina price levels as well as partial value add mix improvement.” (See AA stock analysis on TipRanks)Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys versus 6 Holds. The average price target of $13.50 implies upside potential of about 16% to current levels. Shares have declined about 46% year-to-date.Related News: Gilead To Pay $97M To Settle Kickback Debacle Over Letairis Drug United Airlines, Union Agree To Delay Pilot Furloughs- Report CrowdStrike To Snap Up Preempt Security For $96M More recent articles from Smarter Analyst: * New Residential Hikes Dividend By 50%; Shares Jump 7% * BlackBerry Pops 8% After 2Q Profit Surprises; Street Says Hold * Intuit Rolls Out QuickBooks Online Sales Platform * Chevron Asks Staff To Remove WeChat From Phones - Report