Algoma Steel Group (TSE:ASTL) Trading Down 4.4% - Here's Why

Key Points

• Algoma Steel Group's stock price dropped by 4.4%, closing at C$6.68 after trading as low as C$6.67.
• Analyst ratings have recently been downgraded, with Royal Bank of Canada and BMO Capital Markets lowering their price targets to C$8.00 from former higher estimates.
• The stock currently has a market cap of C$700.96 million and a consensus rating of "Hold" from analysts.

Algoma Steel Group Inc. (TSE:ASTL - Get Free Report) fell 4.4% during mid-day trading on Friday . The stock traded as low as C$6.67 and last traded at C$6.68. 296,222 shares traded hands during trading, an increase of 12% from the average session volume of 265,040 shares. The stock had previously closed at C$6.99.

Analyst Ratings Changes

A number of brokerages have weighed in on ASTL. BMO Capital Markets lowered Algoma Steel Group from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from C$12.00 to C$8.00 in a report on Tuesday, June 3rd. Royal Bank Of Canada reduced their target price on Algoma Steel Group from C$10.00 to C$8.00 and set a "sector perform" rating for the company in a report on Thursday, July 31st. Finally, Stifel Nicolaus lowered their price target on shares of Algoma Steel Group from C$14.00 to C$13.00 and set a "buy" rating on the stock in a research note on Tuesday, June 3rd. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of C$9.67.

Algoma Steel Group Stock Performance

The stock has a market cap of C$693.61 million, a PE ratio of -4.56 and a beta of 2.11. The company has a debt-to-equity ratio of 43.70, a current ratio of 3.31 and a quick ratio of 1.51. The stock has a 50-day simple moving average of C$7.95 and a 200-day simple moving average of C$8.13.

About Algoma Steel Group

Algoma Steel Group Inc is a Canadian company that produces clean and consistent light gauge steel in North America, offering a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production. Geographically it serves Canada, the United States and the rest of the world, whilst driving key revenue from domestic sales.