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.
Finance and Entertainment Reporter
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