Alcoa Stock Receives Pre-Earnings Bear Note

The aluminum company will announce earnings after the close tomorrow

Laura McCandless

Deputy Editor

Jan 16, 2024 at 10:42 AM

The shares of aluminum stock Alcoa Corp (NYSE:AA) are sliding today, after UBS initiated coverage with a "sell" rating and $29 price target, though BMO threw in a price-target hike to $30 from $28. This attention comes ahead of the company's fourth-quarter earnings report, due out after the close tomorrow, Jan. 17.

At last glance, AA was down 3.8% at $28.88, and crossing below the $30 level, which provided support since mid December. The stock's 50-day moving average appears to be containing today's pullback, however. Since last January, AA is down 47.1%.

AA closed lower after its last four earnings reports, including an 8.6% drop this past October. Over the past two years, the stock has averaged a 6% next-day swing, regardless of direction, which is lower than the 10.5% move the options pits are pricing in this time around.

Today's note has UBS joining a mostly bearish brokerage bunch. Of the 14 in coverage, 10 carry a "sell" or worse rating on the stock.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.