ArcelorMittal (NYSE:MT) Stock Rating Lowered by Zacks Investment Research
ArcelorMittal (NYSE:MT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “ArcelorMittal saw higher profits in second-quarter 2017. Earnings for the quarter topped the Zacks Consensus Estimate. Revenues rose by double digits on higher metals pricing, and surpassed expectations. The company raised its steel demand outlook for 2017. ArcelorMittal outperformed the industry it belongs to over the past one year. ArcelorMittal should gain from its efforts to reduce debt, expand capacity and improve efficiency. It is also making a significant progress in reducing costs and expanding its advanced high strength steel product line under the Action 2020 program. The proposed acquisition of Ilva represents another attractive growth opportunity for the company. However, ArcelorMittal continues to contend with challenging steel market conditions in Europe. Demand for steel remains weak in Europe and Brazil. Moreover, cheap steel exports from China is still causing a problem.”
A number of other brokerages have also recently commented on MT. SBG Securities cut ArcelorMittal from a “buy” rating to a “hold” rating in a report on Sunday, July 30th. BidaskClub raised ArcelorMittal from a “buy” rating to a “strong-buy” rating in a report on Wednesday, July 19th. Cowen and Company reissued a “buy” rating and set a $32.00 target price on shares of ArcelorMittal in a report on Wednesday, July 19th. Jefferies Group LLC reissued a “buy” rating and set a $34.00 target price (up previously from $31.50) on shares of ArcelorMittal in a report on Tuesday, July 18th. Finally, ING Group raised ArcelorMittal from a “hold” rating to a “buy” rating in a report on Friday, July 14th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $29.72.
ArcelorMittal (MT) opened at 27.04 on Monday. ArcelorMittal has a 12-month low of $16.14 and a 12-month high of $28.11. The firm’s 50-day moving average price is $23.84 and its 200 day moving average price is $24.07. The stock has a market cap of $27.58 billion, a PE ratio of 8.51 and a beta of 2.09.
ArcelorMittal (NYSE:MT) last announced its earnings results on Thursday, July 27th. The basic materials company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $0.78 by $0.55. ArcelorMittal had a return on equity of 10.52% and a net margin of 5.50%. The business had revenue of $17.24 billion during the quarter, compared to analysts’ expectations of $16.88 billion. During the same quarter in the prior year, the firm earned $0.38 earnings per share. The business’s revenue was up 17.0% compared to the same quarter last year. Analysts anticipate that ArcelorMittal will post $3.07 EPS for the current year.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in MT. Cambiar Investors LLC purchased a new position in ArcelorMittal during the second quarter valued at approximately $114,710,000. Credit Suisse AG raised its position in ArcelorMittal by 2,724.4% in the first quarter. Credit Suisse AG now owns 4,540,212 shares of the basic materials company’s stock valued at $37,910,000 after buying an additional 4,379,463 shares in the last quarter. Renaissance Technologies LLC raised its position in ArcelorMittal by 311.2% in the first quarter. Renaissance Technologies LLC now owns 4,760,754 shares of the basic materials company’s stock valued at $39,755,000 after buying an additional 3,603,075 shares in the last quarter. Jane Street Group LLC raised its position in ArcelorMittal by 775.6% in the first quarter. Jane Street Group LLC now owns 2,127,765 shares of the basic materials company’s stock valued at $17,767,000 after buying an additional 1,884,765 shares in the last quarter. Finally, Morgan Stanley raised its position in ArcelorMittal by 55.5% in the first quarter. Morgan Stanley now owns 2,270,841 shares of the basic materials company’s stock valued at $18,961,000 after buying an additional 810,291 shares in the last quarter. Institutional investors and hedge funds own 9.72% of the company’s stock.
ArcelorMittal SA (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining.
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