ArcelorMittal (NYSE:MT) Shares Gap Down - What's Next?

Key Points

• ArcelorMittal shares fell 5%, opening at $69.81 versus the prior close of $74.59, with last trading reported near $69.42.
• Analyst sentiment is mixed: five analysts rate the stock Buy and seven rate it Hold, producing an average rating of Hold and an average price target of $72.40.
• The company’s latest quarterly results missed expectations, with EPS of $0.90 versus $1.18 estimated and revenue of $16.76 billion versus $17.56 billion expected, although revenue increased 5.2% year over year.

Shares of ArcelorMittal (NYSE:MT - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $74.59, but opened at $69.81. ArcelorMittal shares last traded at $69.4220, with a volume of 608,158 shares.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Jefferies Financial Group reaffirmed a "buy" rating on shares of ArcelorMittal in a research report on Monday, July 6th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $75.00 target price on shares of ArcelorMittal in a research report on Friday, July 31st. Morgan Stanley reissued an "overweight" rating on shares of ArcelorMittal in a research note on Wednesday, August 5th. JPMorgan Chase & Co. upgraded shares of ArcelorMittal from an "underweight" rating to a "neutral" rating in a report on Friday, July 10th. Finally, Weiss Ratings downgraded shares of ArcelorMittal from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Five equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, ArcelorMittal presently has an average rating of "Hold" and an average target price of $72.40.

ArcelorMittal Trading Down 5.0%

The firm has a market cap of $54.92 billion, a price-to-earnings ratio of 30.03, a P/E/G ratio of 0.54 and a beta of 1.53. The firm's 50-day moving average is $67.36 and its 200-day moving average is $62.74. The company has a current ratio of 1.43, a quick ratio of 0.57 and a debt-to-equity ratio of 0.21.

ArcelorMittal (NYSE:MT - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.90 earnings per share for the quarter, missing analysts' consensus estimates of $1.18 by ($0.28). ArcelorMittal had a net margin of 2.88% and a return on equity of 4.20%. The business had revenue of $16.76 billion during the quarter, compared to the consensus estimate of $17.56 billion. During the same period last year, the business posted $1.32 earnings per share. The firm's quarterly revenue was up 5.2% on a year-over-year basis. As a group, sell-side analysts anticipate that ArcelorMittal will post 4.49 EPS for the current fiscal year.

Institutional Trading of ArcelorMittal

Institutional investors and hedge funds have recently modified their holdings of the business. Cetera Investment Advisers boosted its stake in ArcelorMittal by 1.0% in the fourth quarter. Cetera Investment Advisers now owns 18,386 shares of the basic materials company's stock valued at $838,000 after acquiring an additional 190 shares during the last quarter. TD Waterhouse Canada Inc. lifted its stake in ArcelorMittal by 11.2% in the fourth quarter. TD Waterhouse Canada Inc. now owns 2,141 shares of the basic materials company's stock valued at $98,000 after purchasing an additional 216 shares during the last quarter. Aaron Wealth Advisors LLC increased its position in ArcelorMittal by 4.9% in the first quarter. Aaron Wealth Advisors LLC now owns 5,671 shares of the basic materials company's stock worth $295,000 after buying an additional 263 shares during the last quarter. Parallel Advisors LLC raised its stake in shares of ArcelorMittal by 16.4% in the fourth quarter. Parallel Advisors LLC now owns 2,455 shares of the basic materials company's stock valued at $112,000 after buying an additional 346 shares during the period. Finally, GC Wealth Management RIA LLC lifted its position in shares of ArcelorMittal by 4.2% during the 1st quarter. GC Wealth Management RIA LLC now owns 10,186 shares of the basic materials company's stock valued at $529,000 after buying an additional 413 shares during the last quarter. 9.29% of the stock is owned by hedge funds and other institutional investors.

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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