Algoma Steel Group Inc. (NASDAQ:ASTL) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Consensus "Reduce": Six analysts covering Algoma Steel (NASDAQ:ASTL) give a consensus rating of "Reduce" (one sell, five hold), with recent downgrades including Weiss Ratings' "sell (d-)" and Zacks moving to "hold."
• Major earnings miss and weak profitability: Algoma reported a Q result of ($2.11) EPS vs. $0.32 expected and revenue of $331.3M vs. $474.3M expected, showing a negative ROE (‑42.31%) and net margin (‑47.61%), and analysts forecast about ‑0.63 EPS for the year.
• Market and ownership snapshot: ASTL trades around $4.71 with a market cap near $495M and a negative PE, and about 72% of the stock is held by hedge funds and other institutional investors.

Shares of Algoma Steel Group Inc. (NASDAQ:ASTL - Get Free Report) have earned a consensus recommendation of "Reduce" from the six ratings firms that are currently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation and five have assigned a hold recommendation to the company.

A number of analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Algoma Steel Group in a research report on Friday, March 27th. Zacks Research downgraded shares of Algoma Steel Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 9th. Finally, Jefferies Financial Group assumed coverage on shares of Algoma Steel Group in a research report on Friday, January 2nd. They issued a "hold" rating on the stock.

Institutional Trading of Algoma Steel Group

Institutional investors have recently bought and sold shares of the company. Raymond James Financial Inc. purchased a new stake in Algoma Steel Group during the 2nd quarter valued at about $32,000. Element Pointe Advisors LLC purchased a new stake in Algoma Steel Group during the 4th quarter valued at about $41,000. Federation des caisses Desjardins du Quebec grew its position in Algoma Steel Group by 101.6% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 17,860 shares of the company's stock valued at $73,000 after purchasing an additional 9,000 shares during the last quarter. Olympiad Research LP purchased a new stake in Algoma Steel Group during the 3rd quarter valued at about $74,000. Finally, Lighthouse Investment Partners LLC purchased a new stake in Algoma Steel Group during the 3rd quarter valued at about $79,000. 72.00% of the stock is owned by hedge funds and other institutional investors.

Algoma Steel Group Stock Up 0.9%

NASDAQ:ASTL opened at $4.71 on Friday. The firm's 50-day moving average price is $4.36 and its 200-day moving average price is $4.17. The company has a market capitalization of $494.55 million, a PE ratio of -0.70 and a beta of 1.54. The company has a debt-to-equity ratio of 1.36, a current ratio of 2.18 and a quick ratio of 1.03. Algoma Steel Group has a 1-year low of $3.02 and a 1-year high of $7.24.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) last released its earnings results on Wednesday, March 11th. The company reported ($2.11) earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($2.43). The business had revenue of $331.33 million during the quarter, compared to analysts' expectations of $474.30 million. Algoma Steel Group had a negative return on equity of 42.31% and a negative net margin of 47.61%. On average, equities analysts predict that Algoma Steel Group will post -0.63 EPS for the current fiscal year.

Algoma Steel Group Company Profile

Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL.

Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s.

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