Nuveen LLC, a US-based producer and marketer of aluminium products, has expanded its position in Kaiser Aluminium Corporation. It has purchased 43,250 shares valued at approximately USD 2.62 million, according to its latest SEC filing. The acquisition means Nuveen now owns 0.27 per cent of Kaiser Aluminium.
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Image source: https://www.kaiseraluminum.com/
Institutional confidence in Kaiser Aluminium
The action comes as Kaiser Aluminium posted earnings per share of USD 1.21, significantly higher than its expectations for USD 0.49. For the quarter, revenue totalled USD 823.1 million, with evidence of sustained demand in its packaging, automotive and aerospace sectors. The company also maintained a dividend payment of USD 0.77 per share. This represents an annualised yield of 4 per cent.
Other institutional investors have been active, too. Deutsche Bank AG boosted its stake by 54 per cent in Q4. Whereas, Raymond James Financial Inc. initiated a new position worth around USD 2.2 million. Despite the aluminium industry's cyclical price fluctuations, this activity highlights confidence in Kaiser's long-term fundamentals.
Shifting strategies at Nuveen asset management
Notably, Nuveen's latest investment runs counter to past actions. The company’s new investment indicates a renewed belief in Kaiser's dividend appeal and strategy.
In 2022, Nuveen Asset Management LLC exited 892 shares of Kaiser Aluminium Co., as disclosed in a 13F filing. It still owned 103,463 shares (0.65 per cent) worth USD 6.348 million at the time.
Asset managers often rebalance exposure in response to raw material volatility and shifting demand, reflecting broader portfolio adjustments. This also includes changes in interest rates. With Kaiser’s stock trading between a 52-week low of USD 46.81 and a high of USD 97.00, timing has been critical.
Kaiser Aluminium specialises in semi-fabricated aluminium mill products. With aluminium demand supported by EV adoption, sustainable packaging trends, and aerospace recovery, institutional investors see long-term growth potential. Analysts at JPMorgan recently raised their price target from 64.00 to USD 82.00, signalling cautious optimism.
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