NEW YORK (TheStreet) -- Shares of Noranda Aluminum Holding (NOR) were taking a hit, sharply down 18.7% to $1 in late morning trading Thursday, after the company announced it is suspending its quarterly dividend this morning.
It has hired Morgan Stanley to serve as financial advisor to help evaluate strategic alternatives, as the company battles low aluminum prices.
Noranda said it will seek stockholder approval of a reverse stock split at a ratio to be determined.
The stock has fallen about 71.3% so far this year.
"In the face of low aluminum prices, I am proud of the progress we have made in improving our cost structure and overall productivity, as well as our investments that support future improvements," said company president and CEO Layle Smith in a statement.
"This strategic review builds on that work, and is an exciting part of optimizing the positioning of the company," Smith added.
Franklin, Tenn.-based Noranda Aluminum is a producer of primary aluminum and rolled aluminum coils.
The company sells its primary aluminum shipments in the form of products, such as billet, rod and foundry.
Separately, TheStreet Ratings team rates NORANDA ALUMINUM HOLDING CP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORANDA ALUMINUM HOLDING CP (NOR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins and generally disappointing historical performance in the stock itself."