Alcoa's Stock Surges 7.35% on 192% Jump in Trading Volume as Institutional Investors Pile In

Alcoa (AA) surged 7.35% on August 22, 2025, with a trading volume of $270 million, a 192.19% increase from the previous day. The stock’s performance followed multiple institutional investors bolstering their stakes in the industrial products company. HMS Capital Management LLC added 20,560 shares in Q1, valued at $627,000, while Canada Pension Plan Investment Board and Mariner LLC significantly increased holdings in Q4, with the former adding 65,000 shares to hold $6.58 million worth of stock. Raymond James Financial Inc. also entered a new position of $1.64 million in Q4, signaling renewed institutional confidence.

The upward momentum was supported by Alcoa’s recent earnings report, where the firm exceeded expectations with $0.39 per share in Q2 2025, surpassing the $0.29 consensus estimate. Revenue rose 3.9% year-over-year to $3.02 billion. Analysts highlighted the company’s strong return on equity of 19.18% and net margin of 7.86%, reinforcing its operational efficiency. Citigroup upgraded the stock to "Buy" with a $42 price target, while UBS and JPMorgan maintained "Neutral" ratings, reflecting a mixed but cautiously optimistic outlook.

Alcoa’s recent dividend announcement of $0.10 per share, payable on August 28, further attracted income-focused investors. The 1.3% yield aligns with a payout ratio of 10.44%, balancing growth and shareholder returns. The company’s debt-to-equity ratio of 0.41 and current ratio of 1.65 underscore its financial stability, though its beta of 2.24 indicates heightened sensitivity to market swings. Analysts remain divided, with seven "Buy" ratings versus six "Hold" and one "Sell," reflecting uncertainty about macroeconomic headwinds.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,253.88 between December 2022 and August 2025. The approach recorded a maximum drawdown of -$1,025.71 during the period, with a Sharpe ratio of 1.79, suggesting favorable risk-adjusted returns.