Alcoa Inc (NYSE:AA) thinks it “can” do it, analysts differ
Alcoa Inc (NYSE:AA) believes in novelty in everything it does. On Friday, the company sold special centennial-cans of water in commemoration of 100 years of operations in the state of Tennessee. These cans were available to the employees and public only till 4pm on Friday.
The company said that for several years now it has followed the tradition of donating close to 86,000 water cans to various non-profit organizations. However, this was the first time that these cans were sold to the general public. AA said that a large number of people had asked if they could buy the cans and this particular sale was in response to that request. A communications intern at the company, Deborah Huddleston said that it’s more of a popular demand concept. The company has been in that community for a century and the cans will last for the next 100 years and will be a keepsake even for their grandkids.
Last week’s trading
Even as it showed its appreciation to the public in Tennessee, the company’s stock dropped 0.49% in Friday’s trading. The shares opened at a price of $8.08, touched an intraday high of $8.12 which was also its closing price for the day. More than 29.89 million shares were traded on Friday while the average volume of shares traded over a 30 day period was 17.05. The company has a market cap of $8.69 billion.
Analysts at Bank of America downgraded the company’s rating from “underperform” to “neutral” attributing it to reduced aluminum prices. The company has also announced that it will be shuttering its smelting outfits in the United States and Brazil. Other analysts across the board did not think differently. Only 5 out of 14 analysts have assigned a “buy” rating to the AA shares. Six rated the company as a “hold” while 3 assigned it with a “string sell” rating.