Algoma Steel Group (NASDAQ:ASTL) Trading 3.9% Higher - Here's Why

Key Points

• Algoma Steel’s stock jumped 3.9% mid-day to $4.58 (intraday high $4.71) with 1,019,233 shares traded, about 46% below its average daily volume.
• Analysts hold a consensus rating of Reduce (five Holds, one Sell); recent notes include Jefferies initiating coverage at Hold, Weiss reiterating Sell, and Zacks downgrading from Strong Buy to Hold.
• The company reported weak quarterly results — EPS -$2.11 vs. a $0.32 estimate and revenue $331.3M vs. $474.3M expected — and shows negative ROE and net margin, indicating ongoing profitability challenges.

Algoma Steel Group Inc. (NASDAQ:ASTL - Get Free Report)'s stock price traded up 3.9% during mid-day trading on Wednesday . The stock traded as high as $4.71 and last traded at $4.58. 1,019,233 shares changed hands during trading, a decline of 46% from the average session volume of 1,883,152 shares. The stock had previously closed at $4.41.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Jefferies Financial Group assumed coverage on Algoma Steel Group in a research report on Friday, January 2nd. They set a "hold" rating for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Algoma Steel Group in a research report on Friday, March 27th. Finally, Zacks Research lowered Algoma Steel Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 9th. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Algoma Steel Group has a consensus rating of "Reduce".

Algoma Steel Group Stock Performance

The company has a debt-to-equity ratio of 1.36, a quick ratio of 1.03 and a current ratio of 2.18. The stock has a fifty day simple moving average of $4.34 and a two-hundred day simple moving average of $4.16. The stock has a market capitalization of $480.90 million, a price-to-earnings ratio of -0.68 and a beta of 1.54.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) last issued its quarterly 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). Algoma Steel Group had a negative return on equity of 42.31% and a negative net margin of 47.61%.The business had revenue of $331.33 million for the quarter, compared to analyst estimates of $474.30 million. Analysts forecast that Algoma Steel Group Inc. will post -0.63 earnings per share for the current fiscal year.

Institutional Trading of Algoma Steel Group

A number of large investors have recently bought and sold shares of the business. Hsbc Holdings PLC grew its holdings in Algoma Steel Group by 243.7% during the 4th quarter. Hsbc Holdings PLC now owns 38,754 shares of the company's stock worth $159,000 after acquiring an additional 27,477 shares during the period. Invesco Ltd. grew its holdings in Algoma Steel Group by 27.6% during the 4th quarter. Invesco Ltd. now owns 66,713 shares of the company's stock worth $274,000 after acquiring an additional 14,415 shares during the period. Mackenzie Financial Corp grew its holdings in Algoma Steel Group by 74.3% during the 4th quarter. Mackenzie Financial Corp now owns 94,776 shares of the company's stock worth $384,000 after acquiring an additional 40,413 shares during the period. XTX Topco Ltd grew its holdings in Algoma Steel Group by 15.8% during the 4th quarter. XTX Topco Ltd now owns 143,704 shares of the company's stock worth $589,000 after acquiring an additional 19,627 shares during the period. Finally, Orion Resource Partners LP grew its holdings in Algoma Steel Group by 173.8% during the 4th quarter. Orion Resource Partners LP now owns 381,728 shares of the company's stock worth $1,571,000 after acquiring an additional 242,322 shares during the period. 72.00% of the stock is currently owned by institutional investors and hedge funds.

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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