NEW YORK (TheStreet) -- Aluminum producers are reversing gains achieved over October during Thursday trading. Industry heavyweight Alcoa (AA - Get Report) has plunged 6.4% to $9.04 and Century Aluminum (CENX - Get Report) is down 5.1% to $8.82. Aluminum Corp of China (ACH) and Noranda Aluminum Holding (NOR - Get Report) have both shed 1%, while Kaiser Aluminum Corp (KALU - Get Report) has edged 0.56% lower.
Since Oct. 7, micro-cap producer Noranda has led the sector, adding 29.3% to share prices, followed by Alcoa which saw 13.4% gains. Century Aluminum added 8.1% and Aluminum Corp of China remained unchanged. The sole loser, Kaiser Aluminum, shed 7.9% over the last four weeks after reporting disappointing third-quarter earnings mid-month.
In October, Bloomberg said the run-up in aluminum stocks was likely due to speculation prices for the metal would spike over the remainder of the year. On the London Metal Exchange, aluminum for delivery in three months has risen 2.2%.
AlcoaTheStreet Ratings team rates Alcoa Inc as a Hold with a ratings score of C. The team has this to say about its recommendation: "We rate Alcoa Inc (AA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and generally higher debt management risk."
- You can view the full analysis from the report here: AA Ratings Report
- You can view the full analysis from the report here: CENX Ratings Report
- You can view the full analysis from the report here: NOR Ratings Report
- You can view the full analysis from the report here: KALU Ratings Report