ArcelorMittal (NYSE:MT) Shares Gap Down After Earnings Miss

Key Points

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ArcelorMittal (NYSE:MT - Get Free Report) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $32.46, but opened at $30.29. ArcelorMittal shares last traded at $31.41, with a volume of 1,084,957 shares.

The basic materials company reported $1.32 earnings per share for the quarter, missing the consensus estimate of $1.33 by ($0.01). ArcelorMittal had a return on equity of 5.07% and a net margin of 4.11%. The firm had revenue of $15.93 billion for the quarter, compared to analyst estimates of $15.48 billion. During the same quarter in the prior year, the firm earned $0.63 earnings per share. The firm's revenue for the quarter was down 2.0% on a year-over-year basis.

ArcelorMittal Cuts Dividend

The firm also recently declared a dividend, which was paid on Wednesday, June 11th. Investors of record on Monday, May 19th were paid a $0.2338 dividend. The ex-dividend date was Friday, May 16th. This represents a dividend yield of 144.0%. ArcelorMittal's dividend payout ratio is 14.20%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on MT shares. Barclays lowered shares of ArcelorMittal from an "overweight" rating to an "equal weight" rating in a report on Wednesday, July 16th. Wall Street Zen downgraded shares of ArcelorMittal from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of ArcelorMittal in a report on Monday, April 14th. Finally, The Goldman Sachs Group raised ArcelorMittal from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $29.00 to $31.70 in a report on Thursday, April 10th. Five research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $32.95.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. SVB Wealth LLC purchased a new stake in ArcelorMittal during the first quarter worth about $43,000. Geneos Wealth Management Inc. grew its position in shares of ArcelorMittal by 44.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,635 shares of the basic materials company's stock valued at $47,000 after acquiring an additional 501 shares during the period. Hexagon Capital Partners LLC increased its stake in shares of ArcelorMittal by 25.4% during the 1st quarter. Hexagon Capital Partners LLC now owns 1,779 shares of the basic materials company's stock worth $51,000 after purchasing an additional 360 shares during the last quarter. GAMMA Investing LLC lifted its stake in ArcelorMittal by 31.1% in the first quarter. GAMMA Investing LLC now owns 1,920 shares of the basic materials company's stock valued at $55,000 after purchasing an additional 456 shares during the last quarter. Finally, Bayforest Capital Ltd grew its holdings in ArcelorMittal by 23.7% during the first quarter. Bayforest Capital Ltd now owns 2,298 shares of the basic materials company's stock valued at $62,000 after purchasing an additional 440 shares during the period. 9.29% of the stock is owned by institutional investors.

ArcelorMittal Trading Down 2.1%

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.35 and a quick ratio of 0.58. The firm has a fifty day simple moving average of $31.80 and a two-hundred day simple moving average of $29.61. The firm has a market capitalization of $25.36 billion, a P/E ratio of 9.56, a price-to-earnings-growth ratio of 0.13 and a beta of 1.65.

ArcelorMittal Company Profile

ArcelorMittal SA, together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes.