ArcelorMittal (NYSE:MT) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analysts’ consensus: ArcelorMittal has an average recommendation of "Hold" from 13 analysts (1 sell, 6 hold, 6 buy) and a 12‑month average price target of $60.73.
• Recent results and metrics: the company beat EPS expectations last quarter ($0.86 vs. $0.56) but missed revenue estimates, trades around $61 with a PE of about 14.9, and announced a $0.15 quarterly dividend (roughly 1.0% yield).
• Notable broker activity: several firms have changed views recently—most prominently, Jefferies upgraded MT from "hold" to buy and raised its price target to $73.20, while others issued both upgrades and downgrades, signaling mixed analyst sentiment.

Shares of ArcelorMittal (NYSE:MT - Get Free Report) have earned a consensus recommendation of "Hold" from the thirteen analysts that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, six have given a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $60.7333.

Several equities research analysts recently issued reports on MT shares. Citigroup reaffirmed a "buy" rating on shares of ArcelorMittal in a research note on Friday, February 13th. Santander downgraded shares of ArcelorMittal from an "outperform" rating to a "neutral" rating in a research note on Tuesday. KeyCorp started coverage on shares of ArcelorMittal in a research note on Wednesday, March 25th. They set a "sector weight" rating on the stock. Oddo Bhf raised shares of ArcelorMittal from a "neutral" rating to an "outperform" rating in a research note on Wednesday, January 14th. Finally, Jefferies Financial Group raised shares of ArcelorMittal from a "hold" rating to a "buy" rating and lifted their price target for the stock from $51.10 to $73.20 in a research note on Wednesday, February 11th.

ArcelorMittal Price Performance

Shares of MT stock opened at $61.00 on Thursday. The firm has a fifty day simple moving average of $57.90 and a 200-day simple moving average of $49.52. The company has a market capitalization of $47.27 billion, a PE ratio of 14.88, a price-to-earnings-growth ratio of 0.51 and a beta of 1.49. ArcelorMittal has a twelve month low of $28.01 and a twelve month high of $67.60. The company has a current ratio of 1.36, a quick ratio of 0.53 and a debt-to-equity ratio of 0.19.

ArcelorMittal (NYSE:MT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The basic materials company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.30. ArcelorMittal had a net margin of 5.14% and a return on equity of 5.27%. The firm had revenue of $14.97 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the previous year, the firm posted $0.52 EPS. The firm's quarterly revenue was up 1.7% on a year-over-year basis. Equities research analysts anticipate that ArcelorMittal will post 4.65 earnings per share for the current fiscal year.

ArcelorMittal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Friday, November 13th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, November 13th. ArcelorMittal's dividend payout ratio is presently 12.44%.

Institutional Trading of ArcelorMittal

A number of hedge funds and other institutional investors have recently made changes to their positions in MT. AQR Capital Management LLC increased its stake in shares of ArcelorMittal by 75.0% in the first quarter. AQR Capital Management LLC now owns 34,038 shares of the basic materials company's stock worth $982,000 after buying an additional 14,593 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in shares of ArcelorMittal by 44.2% in the first quarter. Geneos Wealth Management Inc. now owns 1,635 shares of the basic materials company's stock worth $47,000 after buying an additional 501 shares during the last quarter. Cetera Investment Advisers bought a new stake in shares of ArcelorMittal in the second quarter worth $232,000. Russell Investments Group Ltd. increased its stake in shares of ArcelorMittal by 9.4% in the second quarter. Russell Investments Group Ltd. now owns 37,029 shares of the basic materials company's stock worth $1,169,000 after buying an additional 3,171 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of ArcelorMittal by 268.6% in the second quarter. EverSource Wealth Advisors LLC now owns 2,422 shares of the basic materials company's stock worth $76,000 after buying an additional 1,765 shares during the last quarter. Institutional investors own 9.29% of the company's stock.

ArcelorMittal Company Profile

ArcelorMittal is a multinational steel manufacturing company formed in 2006 through the merger of Arcelor and Mittal Steel. Headquartered in Luxembourg, the company is one of the world's largest producers of steel and operates an integrated value chain that spans raw material extraction, steelmaking, processing and distribution. Its product portfolio includes flat and long carbon steel products, coated and specialty steels, tubular products and value-added solutions tailored for sectors such as automotive, construction, household appliances, energy and packaging.

ArcelorMittal's operations are global in scope, with production facilities, distribution networks and commercial activities across Europe, the Americas, Asia, Africa and the Commonwealth of Independent States.

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