ArcelorMittal (NYSE:MT) Shares Gap Up - Here's Why

ArcelorMittal (NYSE:MT - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $31.22, but opened at $32.60. ArcelorMittal shares last traded at $32.72, with a volume of 203,700 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on MT shares. Jefferies Financial Group lowered ArcelorMittal from a "buy" rating to a "hold" rating and set a $36.20 target price on the stock. in a research report on Wednesday, March 26th. The Goldman Sachs Group raised shares of ArcelorMittal from a "neutral" rating to a "buy" rating and upped their price objective for the company from $29.00 to $31.70 in a research note on Thursday, April 10th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of ArcelorMittal in a research report on Monday, April 14th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $32.95.

ArcelorMittal Stock Performance

The stock has a market capitalization of $26.74 billion, a PE ratio of 21.33, a P/E/G ratio of 0.15 and a beta of 1.63. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.58 and a current ratio of 1.35. The firm has a 50 day moving average of $30.61 and a 200-day moving average of $28.05.

ArcelorMittal (NYSE:MT - Get Free Report) last posted its quarterly earnings results on Wednesday, April 30th. The basic materials company reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.71 by $0.33. ArcelorMittal had a net margin of 1.98% and a return on equity of 4.11%. The business had revenue of $14.80 billion during the quarter, compared to analyst estimates of $15.11 billion. During the same period in the prior year, the firm earned $1.16 earnings per share. The firm's revenue was down 9.1% compared to the same quarter last year. Research analysts forecast that ArcelorMittal will post 3.72 earnings per share for the current year.

ArcelorMittal Cuts Dividend

The business also recently announced a dividend, which was paid on Wednesday, June 11th. Shareholders of record on Monday, May 19th were paid a dividend of $0.2338 per share. This represents a dividend yield of 1.44%. The ex-dividend date was Friday, May 16th. ArcelorMittal's dividend payout ratio (DPR) is currently 30.72%.

Hedge Funds Weigh In On ArcelorMittal

Hedge funds have recently modified their holdings of the stock. Hexagon Capital Partners LLC grew its stake in ArcelorMittal by 25.4% in the first quarter. Hexagon Capital Partners LLC now owns 1,779 shares of the basic materials company's stock valued at $51,000 after purchasing an additional 360 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of ArcelorMittal by 4.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 9,438 shares of the basic materials company's stock valued at $272,000 after buying an additional 362 shares in the last quarter. Evergreen Capital Management LLC increased its holdings in ArcelorMittal by 3.0% in the first quarter. Evergreen Capital Management LLC now owns 14,097 shares of the basic materials company's stock worth $407,000 after buying an additional 405 shares during the last quarter. US Bancorp DE increased its holdings in ArcelorMittal by 2.7% in the first quarter. US Bancorp DE now owns 15,496 shares of the basic materials company's stock worth $447,000 after buying an additional 411 shares during the last quarter. Finally, Bayforest Capital Ltd raised its position 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 acquiring an additional 440 shares in the last quarter. 9.29% of the stock is owned by institutional investors and hedge funds.

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.