Algoma Steel Group (NASDAQ:ASTL) Shares Gap Down After Earnings Miss

Key Points

• Algoma Steel Group's stock price gapped down from $5.85 to $5.25 during trading, closing at $5.48.
• Analyst ratings for Algoma Steel have shifted, with Stifel Canada and BMO Capital Markets downgrading their ratings to "hold" while Royal Bank of Canada upgraded it to "hold".
• The company's recent earnings report showed a net loss of ($0.33) EPS against a consensus estimate of (0.69), with revenue exceeding expectations at $359.3 million.

Algoma Steel Group Inc. (NASDAQ:ASTL - Get Free Report)'s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $5.85, but opened at $5.25. Algoma Steel Group shares last traded at $5.48, with a volume of 509,283 shares trading hands.

The company reported ($0.74) earnings per share for the quarter, missing analysts' consensus estimates of ($0.45) by ($0.29). The company had revenue of $433.14 million for the quarter, compared to analysts' expectations of $577.67 million. Algoma Steel Group had a negative net margin of 13.51% and a negative return on equity of 22.24%.

Wall Street Analyst Weigh In

ASTL has been the topic of a number of research analyst reports. Royal Bank Of Canada raised shares of Algoma Steel Group to a "hold" rating in a report on Tuesday, April 22nd. Stifel Canada lowered shares of Algoma Steel Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 17th. Wall Street Zen lowered shares of Algoma Steel Group from a "hold" rating to a "sell" rating in a report on Saturday. Finally, BMO Capital Markets lowered shares of Algoma Steel Group from a "strong-buy" rating to a "hold" rating in a report on Monday, June 2nd.

Institutional Investors Weigh In On Algoma Steel Group

Several hedge funds have recently added to or reduced their stakes in the business. Donald Smith & CO. Inc. boosted its holdings in Algoma Steel Group by 0.3% in the first quarter. Donald Smith & CO. Inc. now owns 8,088,120 shares of the company's stock valued at $43,838,000 after purchasing an additional 20,517 shares during the last quarter. MMCAP International Inc. SPC boosted its holdings in Algoma Steel Group by 0.3% in the first quarter. MMCAP International Inc. SPC now owns 6,641,417 shares of the company's stock valued at $35,996,000 after purchasing an additional 21,414 shares during the last quarter. Woodline Partners LP boosted its holdings in Algoma Steel Group by 59.2% in the fourth quarter. Woodline Partners LP now owns 2,844,439 shares of the company's stock valued at $27,819,000 after purchasing an additional 1,057,517 shares during the last quarter. Intact Investment Management Inc. boosted its holdings in Algoma Steel Group by 24.6% in the first quarter. Intact Investment Management Inc. now owns 1,463,761 shares of the company's stock valued at $7,945,000 after purchasing an additional 288,861 shares during the last quarter. Finally, Solas Capital Management LLC boosted its holdings in Algoma Steel Group by 37.7% in the first quarter. Solas Capital Management LLC now owns 1,460,646 shares of the company's stock valued at $7,917,000 after purchasing an additional 400,000 shares during the last quarter. 72.00% of the stock is owned by hedge funds and other institutional investors.

Algoma Steel Group Stock Performance

The company has a debt-to-equity ratio of 0.47, a current ratio of 2.46 and a quick ratio of 1.47. The company has a market capitalization of $539.34 million, a PE ratio of -2.30 and a beta of 1.63. The firm's fifty day simple moving average is $6.34 and its 200 day simple moving average is $6.39.

About Algoma Steel Group

Algoma Steel Group Inc produces and sells steel products primarily in North America. The company provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural product manufacturers, and the light manufacturing and transportation industries; and plate steel products that consist of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, and military applications.