Algoma Steel Group (NASDAQ:ASTL) Stock Price Up 16% - What's Next?

Key Points

• Algoma Steel shares jumped 16% to about $4.75 in mid-day trading, with volume 59% above its average session level.
• Despite the rally, analyst sentiment remains cautious: three analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating.
• The company reported a quarterly loss of $0.64 per share, missing estimates, while revenue of $267.5 million exceeded forecasts; analysts expect a full-year loss of $2.37 per share.

Shares of Algoma Steel Group Inc. (NASDAQ:ASTL - Get Free Report) traded up 16% during mid-day trading on Wednesday . The company traded as high as $4.71 and last traded at $4.7450. 2,060,259 shares traded hands during trading, an increase of 59% from the average session volume of 1,292,693 shares. The stock had previously closed at $4.09.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of Algoma Steel Group in a research report on Wednesday, June 24th. Wall Street Zen raised Algoma Steel Group from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 1st. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Algoma Steel Group in a research note on Thursday, May 14th. Finally, Zacks Research raised Algoma Steel Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 9th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce".

Algoma Steel Group Price Performance

The firm's fifty day moving average price is $4.14 and its 200 day moving average price is $4.46. The firm has a market capitalization of $510.03 million, a PE ratio of -0.66 and a beta of 1.64. The company has a current ratio of 2.49, a quick ratio of 1.35 and a debt-to-equity ratio of 2.85.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported ($0.64) earnings per share for the quarter, missing the consensus estimate of ($0.60) by ($0.04). The company had revenue of $267.50 million for the quarter, compared to analyst estimates of $205.57 million. Algoma Steel Group had a negative return on equity of 110.49% and a negative net margin of 71.60%. As a group, equities analysts forecast that Algoma Steel Group Inc. will post -2.37 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ASTL. LPL Financial LLC grew its stake in shares of Algoma Steel Group by 5.6% in the fourth quarter. LPL Financial LLC now owns 62,194 shares of the company's stock worth $255,000 after acquiring an additional 3,300 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of Algoma Steel Group by 13.7% in the third quarter. NewEdge Advisors LLC now owns 28,299 shares of the company's stock valued at $101,000 after acquiring an additional 3,400 shares in the last quarter. Raymond James Financial Inc. purchased a new position in Algoma Steel Group in the second quarter valued at $32,000. Mackenzie Financial Corp boosted its holdings in Algoma Steel Group by 12.6% in the third quarter. Mackenzie Financial Corp now owns 54,363 shares of the company's stock valued at $193,000 after purchasing an additional 6,086 shares during the period. Finally, Legal & General Group Plc grew its stake in Algoma Steel Group by 11.3% during the 2nd quarter. Legal & General Group Plc now owns 88,583 shares of the company's stock worth $611,000 after purchasing an additional 8,963 shares in the last quarter. 72.00% of the stock is currently owned by hedge funds and other institutional investors.

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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