Alcoa's stock set for strong open after earnings beat, dividend initiation and new $500 million buyback program

Shares of Alcoa changeable up 5.5% successful premarket trading Friday, aft the aluminum institution reported third-quarter grounds nett net and income that bushed expectations, said it was initiating a currency dividend and acceptable a caller $500 cardinal banal repurchase program. The institution said precocious Thursday gross maturation was driven by higher aluminum and alumina prices, and higher premiums for value-add products. The caller quarterly currency dividend of 10 cents a stock volition beryllium payable Nov. 19 to shareholders of grounds connected Oct. 29. Based connected Thursday's banal closing terms of $48.60, the yearly dividend complaint implies a dividend output of 0.82%, compared with the implied output for the S&P 500 SPX, +1.71% of 1.36%. And the caller banal buyback programme represents 5.5% of Alcoa's marketplace capitalization arsenic of Thursday's close. The stock, which is connected way to unfastened conscionable shy of the Sept. 15 three-year closing precocious of $51.68, has much than doubled (up 110.9%) twelvemonth to day done Thursday, portion the S&P 500 has gained 18.2%.