ALCOA JUMPS AS Q3 PROFIT COMES IN AT TWICE THE EXPECTATION

Alcoa is currently trading at 38.86-higher by about 5.89% as compared to the previous closing. In Pre-market trading on Thursday, the stock was trading higher by 6.10%. The stock has cut some of its earlier gains after the opening bell.

Alcoa reported a better-than-expected quarterly profit on Wednesday (after market close), as a series of supply hits boosted alumina prices. The Company has also unveiled a common stock repurchase program of $200 M, which depends on cash flow availability, market conditions, and other factors. The company further added that the program does not have a predetermined expiration date.

The company reported adjusted quarterly profit of 63 cents per share-above the market expectation of 36 cents per share. The aluminum producer’s revenue also came in above forecasts.

The CEO said on a post-earnings call that while increased alumina prices represented an added cost, the company benefited from strength in third-party alumina sales.

Alcoa also disclosed that it had a net benefit of $27M in the third quarter from U.S. tariffs as they helped push up the Midwest regional premium.

On the technical front, the RSI is currently at 46.38% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.

Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.

 

TRADE SUGGESTION-LIMIT BUY AT 38.65   TAKE PROFIT AT 39.40  STOP LOSS AT 38.25

 

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