Renato Bacchi, the Executive Vice President and Chief Commercial Officer of Alcoa Corp (NYSE:AA), recently sold 23,867 shares of the company's common stock. The transaction, which took place on October 22, 2024, was conducted at a weighted average price of $42.294 per share, totaling approximately $1.01 million. Following this sale, Bacchi retains ownership of 57,317 shares. The shares were sold in multiple transactions at prices ranging from $42.0200 to $42.4800.
In other recent news, Alcoa Corporation exhibited a strong performance in its third-quarter results, with net income rising to $90 million, a significant increase from $20 million in the previous quarter. The company's adjusted EBITDA also saw a substantial rise, reaching $455 million. BMO (TSX:BMO) Capital Markets and B. Riley have both adjusted their outlooks on Alcoa, raising their price targets and upgrading the stock ratings, reflecting the company's successful implementation of profitability savings programs and the favorable high alumina prices.
Following the acquisition of Alumina (OTC:AWCMY) Limited, Alcoa's third-party alumina sales potential increased from 2 million tons per year to 6 million tons per year. This strategic move, along with others like plans to sell its 25.1% stake in Ma'aden joint ventures, and a partnership with IGNIS Group for its Spanish operations, underscore Alcoa's proactive approach towards leveraging market conditions and strategic initiatives.
On the financial front, Alcoa aims to reduce its adjusted net debt of $2.2 billion, with a focus on productivity and strategic initiatives. The company is also working towards obtaining Western Australia mining approvals by early 2026, with potential operations starting in 2027. These recent developments highlight Alcoa's ability to effectively strategize and capitalize on current market conditions.
InvestingPro Insights
As Alcoa Corp's Executive Vice President and Chief Commercial Officer Renato Bacchi divests a portion of his holdings, investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Alcoa's market capitalization stands at $10.82 billion, reflecting its significant presence in the aluminum industry.
Despite the recent insider sale, Alcoa has demonstrated strong market performance, with a remarkable 81.11% price total return over the past year. This impressive gain aligns with an InvestingPro Tip indicating that the stock has shown a high return over the last year. Additionally, the company has exhibited robust short-term momentum, with a 13.87% price total return in the past month and a 27.95% return over the last three months.
However, it's important to note that Alcoa faces some challenges. An InvestingPro Tip highlights that the company suffers from weak gross profit margins, which is reflected in the reported gross profit margin of 12.22% for the last twelve months as of Q3 2024. This metric suggests that Alcoa may need to focus on improving its operational efficiency to enhance profitability.
On a positive note, another InvestingPro Tip reveals that net income is expected to grow this year, potentially signaling a turnaround in the company's financial performance. This expectation is particularly significant given that Alcoa was not profitable over the last twelve months, with a negative P/E ratio of -27.46.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for Alcoa Corp. These tips could provide valuable context for understanding the company's prospects in light of recent insider activity and market trends.
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