Algoma Steel Group (NASDAQ:ASTL) Shares Down 0.3% - Here's What Happened

Key Points

• Algoma Steel Group shares slipped 0.3% on Wednesday, trading between $3.70 and $3.75 on volume of 832,126 shares, which was above its average daily volume.
• Analyst sentiment remains cautious: Zacks upgraded the stock to Hold, while RBC reiterated Sector Perform and Weiss Ratings kept a Sell view. The current consensus rating is Reduce.
• The company’s latest earnings missed expectations, posting EPS of -$1.06 versus the expected -$0.78, with revenue also slightly below estimates. Algoma Steel continues to show weak profitability metrics, including a negative net margin and return on equity.

Algoma Steel Group Inc. (NASDAQ:ASTL - Get Free Report) shares fell 0.3% during mid-day trading on Wednesday . The company traded as low as $3.70 and last traded at $3.75. 832,126 shares were traded during mid-day trading, an increase of 14% from the average daily volume of 728,272 shares. The stock had previously closed at $3.76.

Wall Street Analyst Weigh In

ASTL has been the topic of a number of analyst reports. Zacks Research raised shares of Algoma Steel Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 9th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Algoma Steel Group in a report on Thursday, May 14th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Algoma Steel Group in a research note on Wednesday, June 24th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Algoma Steel Group presently has a consensus rating of "Reduce".

Algoma Steel Group Price Performance

The company has a quick ratio of 1.22, a current ratio of 2.45 and a debt-to-equity ratio of 2.19. The company has a market cap of $396.23 million, a PE ratio of -0.50 and a beta of 1.64. The stock has a 50-day simple moving average of $4.74 and a 200 day simple moving average of $4.50.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) last announced its quarterly earnings results on Tuesday, May 12th. The company reported ($1.06) EPS for the quarter, missing the consensus estimate of ($0.78) by ($0.28). The business had revenue of $216.44 million during the quarter, compared to analyst estimates of $217.57 million. Algoma Steel Group had a negative net margin of 60.03% and a negative return on equity of 75.76%. Equities analysts expect that Algoma Steel Group Inc. will post -2.27 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Raymond James Financial Inc. purchased a new position in Algoma Steel Group during the second quarter worth about $32,000. Element Pointe Advisors LLC acquired a new stake in shares of Algoma Steel Group during the fourth quarter valued at about $41,000. Federation des caisses Desjardins du Quebec raised its stake in shares of Algoma Steel Group by 101.6% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 17,860 shares of the company's stock valued at $73,000 after acquiring an additional 9,000 shares during the period. FIL Ltd purchased a new stake in shares of Algoma Steel Group in the 4th quarter valued at approximately $85,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Algoma Steel Group in the 2nd quarter worth approximately $146,000. Institutional investors and hedge funds own 72.00% of the company's stock.

About Algoma Steel Group

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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