Billionaire Dan Loeb is Adding These 5 Stocks in his Portfolio

2. Alcoa Corporation (NYSE:AA)

Third Point’s Stake Value: $213.8 million

Percentage of Third Point’s 13F Portfolio: 2.78%

Number of Hedge Fund Holders: 50

Alcoa Corporation (NYSE:AA) is the world’s eighth-largest aluminum producer and operates in 10 countries. In the first quarter of 2022, 50 out of the 912 hedge funds tracked by Insider Monkey were bullish on Alcoa Corporation (NYSE:AA), up from 41 in the previous quarter.

According to Alcoa Corporation (NYSE:AA)’s Q1 reports, the company’s non-GAAP adjusted EPS surged by 22% compared to the previous quarter and YoY growth was recorded at 287%. The main catalyst behind it was the price surge in aluminum from $2.3 billion per metric tonne to $3.68 billion. The company’s proportional net debt was around $1.3 billion. However, Alcoa Corporation (NYSE:AA) expects to generate over $4 billion of EBITDA at the end of FY 2022. Furthermore, the company has no debt maturities till 2027.

Credit Suisse analyst Curt Woodworth expects a weaker Q2 performance by the company and lowered the firm’s price target to $63 from $82, maintaining a Neutral rating on its shares on July 19. The analyst also expects a weaker result in the third quarter, insinuating a successive decline in EBITDA due to lower alumina/aluminum average selling price.