Kaiser Aluminum revenue rises 42% as institutional ownership remains above 99%

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Kaiser Aluminum Corporation, a US-based producer of semi-fabricated aluminium products, saw changes in shareholder holdings during the fourth quarter, with Systematic Financial Management LP reducing its stake by 2.2 per cent, according to its latest filing with the US Securities and Exchange Commission (SEC).

The investment firm held 258,210 shares in Kaiser Aluminum at the end of the quarter after selling 5,791 shares. The holding was valued at about USD 29.66 million and represented approximately 1.59 per cent ownership in the company.

Several other institutional investors also reported changes in their holdings. Vanguard Group increased its position by 0.3 per cent in the fourth quarter and held 2,117,791 shares valued at USD 243.25 million after purchasing an additional 5,823 shares.

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State Street Corporation increased its holding by 31.9 per cent during the second quarter to 1,154,415 shares valued at USD 92.24 million. Meanwhile, Dimensional Fund Advisors raised its position by 0.6 per cent in the third quarter to 817,743 shares worth USD 63.09 million.

American Century Investments increased its holdings by 9.8 per cent to 588,720 shares valued at USD 45.43 million, while Wellington Management Group lifted its stake by 1.1 per cent to 502,446 shares worth USD 38.77 million. Institutional investors and hedge funds currently own 99.29 per cent of the company.

Shares of Kaiser Aluminum recently rose 3.6 per cent to close at USD 175.47. The stock has traded between a 52-week low of USD 68.22 and a high of USD 183.00. The company’s 50-day moving average stood at USD 147.12, while the 200-day moving average was USD 127.54. Kaiser Aluminum’s market capitalisation was approximately USD 2.87 billion. The company reported a debt-to-equity ratio of 1.28, a current ratio of 2.47 and a quick ratio of 1.14.

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For the quarter ended April 22, Kaiser Aluminum reported earnings per share of USD 3.74, beating analysts’ estimate of USD 1.96 by USD 1.78. Revenue for the quarter reached USD 1.11 billion, above the consensus estimate of USD 948.5 million and up 42.4 per cent from the same period last year. The company reported a return on equity of 17 per cent and a net margin of 4.14 per cent. During the corresponding quarter last year, earnings per share stood at USD 1.44. Analysts currently expect full-year earnings of USD 8.69 per share.

The company also declared a quarterly dividend of USD 0.77 per share, which was paid on May 15. Shareholders on record as of April 24 were eligible for the payout. On an annualised basis, the dividend totals USD 3.08 per share, with a dividend yield of approximately 1.8 per cent. The dividend payout ratio stood at 33.55 per cent.

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Analyst coverage also shifted recently. UBS Group initiated coverage with a neutral rating and a USD 176 price target. KeyCorp raised its target price to USD 183 and maintained an overweight rating. Zacks Investment Research upgraded the stock to a “strong buy.” Other firms also updated ratings, leaving Kaiser Aluminium with an overall “moderate buy” consensus and an average target price of USD 159.50.