NEW YORK (TheStreet) -- Alcoa (AA) - Get Report stock is down 1.71% to $7.16 in mid-afternoon trading on Monday, after the company announced it was appointing three new board members, thereby avoiding a public fight with activist investor ElliottManagement.
The metals company appointed SpiritAerosystems (SPR) CFO Ulrich Schmidt and former TRW Automotive (TRW) CEO John Plant to its board. The company also named private investor Sean Mahoney, who is a member of Delphi Automative (DLPH) and Cooper-Standard Holdings' (CPS) board, as a director.
The new board members' backgrounds will help the company during the separation of its aerospace and automotive businesses later this year, Alcoa said. The appointments, which increase the size of Alcoa's board to 15 members, are effective February 5.
Elliott is a hedge fund that holds a 7.5% stake in the company, the New York Times reports.
Elliott will support Alcoa's new board member nominees at the company's annual shareholder meeting in April, Alcoa said.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C-. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. However, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: AA