Alcoa Corporation (NYSE: AA) is a leading player in the industrial products sector, primarily focusing on aluminum and alumina production. The company benefits from its vertical integration and strong balance sheet, which help it navigate the cyclical nature of commodity prices. Alcoa's strategic positioning allows it to capitalize on price recoveries, enhancing its earnings before interest, taxes, depreciation, and amortization (EBITDA).
On December 15, 2025, Carlos De Alba from Morgan Stanley set a price target of $52 for Alcoa, suggesting a potential upside of 14.16% from its current trading price of $45.55. This optimistic outlook is supported by Alcoa's trading at a 50% discount to the sector median EV/EBITDA, indicating potential for growth as market conditions improve.
Institutional investors are showing confidence in Alcoa's prospects. Federated Hermes Inc. increased its investment by 2.7%, now holding 465,971 shares valued at approximately $13.75 million. This represents about 0.18% of Alcoa's total shares. Other investors, like Cetera Investment Advisers and Charles Schwab Investment Management Inc., have also increased their stakes, reflecting a positive sentiment towards the company's future.
Arrow Capital Pty Ltd has made a notable investment in Alcoa, purchasing 120,000 shares valued at around $3.5 million. This positions Alcoa as the 24th largest holding in Arrow Capital's portfolio, accounting for about 2.6% of their total investments. The interest from various investment firms underscores the market's confidence in Alcoa's potential for growth.
Despite a recent decrease of 1.28% in its stock price, Alcoa's market capitalization stands at approximately $11.8 billion. The stock has traded between $45.40 and $46.68 today, with a 52-week high of $47.48 and a low of $21.53. The trading volume for Alcoa is 3,076,844 shares, indicating active investor interest in the company's stock.
