Alcoa's earnings were well-received, but the stock has been choppy today
Shares of Alcoa Corp (NYSE:AA) are 1.1% lower to trade at $41.58 today, even after the aluminum company posted a third-quarter earnings beat of 57 cents per share. Revenue missed estimates however, coming in at $2.90 billion and short of the expected $2.97 billion as aluminum shipments decreased.
JPMorgan Securities hiked its price target by $3 to $39 in response. Meanwhile, Jefferies noted Alcoa's Productivity Improvement Program initiative and its "relatively green footprint," as indicators of potential future outperformance.
Initially the shares moved higher out of the gate. AA had been executing a nice V-shaped rally on the charts back to its May peak near $45, yesterday marking its fifth win in six sessions. The $28 level captured two brief pullbacks the equity suffered in August and September, and despite today's volatility, is up 25% year-to-date.
Further bull notes could be in store, per the four covering brokerages that sport a tepid "hold" recommendation on Alcoa stock. Plus, AA's Schaeffer's Volatility Scorecard (SVS) sits at 70 out of 100, meaning it's tended to exceed options traders' volatility expectations in the past year.