Alcoa (AA) Sinks 4.60% And Is Continuing To Sink, How’s The Company Holding Up?

Alcoa Corporation stock was in a deep downfall this past week. The stock has dropped by over 12.4%. On July 12 the stock was worth $37.53 by the end of the trading session. On the next day, the stock has dropped to the price of $35.62. Since that day the stock has been decreasing radically. What was the main cause of such a decrease?
The company’s strong results, its stock dropped by 4%. The decline came despite positive analyst comments. Alcoa Corporation has made a good result of net income comparing to last years’ losses. The overall sales of the company have surged 32%.

Citi upgraded Alcoa to buy from neutral and set a $52 price target. The firm sees the company’s approach to capital allocation as a big asset and that its shareholders can expect a mix of payouts and share buybacks. Although Alcoa is in a cyclical business, it tends to perform well when investors are skeptical about the future. Until the global economy shows signs of a recovery, Alcoa’s stock might not see its rebound as robust as some investors think it should.

Richard McEntire

Finance and Entertainment Reporter Richard is a bottle of wine - the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.

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