ArcelorMittal Sees Unusually Large Options Volume (NYSE:MT)

Key Points

• ArcelorMittal experienced an 168% increase in call options trading, with 6,818 options acquired, indicating significant investor interest.
• Recent analyst ratings show mixed opinions, with Wells Fargo upgrading the stock to a "hold" while Barclays downgraded it, contributing to an average rating of "hold" with a price target of $32.96.
• The company reported earnings per share (EPS) of $1.32 for the last quarter, slightly missing estimates, but had revenue exceeding expectations at $15.93 billion.

ArcelorMittal (NYSE:MT - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Investors acquired 6,818 call options on the company. Thisrepresentsanincreaseof168% compared to the typical volume of 2,547 call options.

ArcelorMittal Trading Up 2.3%

NYSE:MT traded up $0.7660 during midday trading on Friday, reaching $33.9960. 1,259,737 shares of the stock traded hands, compared to its average volume of 1,989,984. The company has a fifty day moving average of $32.59 and a 200 day moving average of $30.59. ArcelorMittal has a 12 month low of $21.59 and a 12 month high of $35.13. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.59 and a current ratio of 1.40. The stock has a market capitalization of $27.85 billion, a P/E ratio of 10.49, a PEG ratio of 0.15 and a beta of 1.65.

ArcelorMittal (NYSE:MT - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The basic materials company reported $1.32 EPS for the quarter, missing analysts' consensus estimates of $1.33 by ($0.01). ArcelorMittal had a net margin of 4.11% and a return on equity of 4.99%. The firm had revenue of $15.93 billion for the quarter, compared to the consensus estimate of $15.48 billion. During the same quarter in the prior year, the company earned $0.63 earnings per share. The company's quarterly revenue was down 2.0% compared to the same quarter last year. On average, research analysts predict that ArcelorMittal will post 3.72 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MT. Telemark Asset Management LLC purchased a new position in ArcelorMittal during the 1st quarter valued at $11,540,000. Connor Clark & Lunn Investment Management Ltd. increased its position in ArcelorMittal by 22.0% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,872,477 shares of the basic materials company's stock valued at $54,021,000 after purchasing an additional 337,158 shares during the period. Bank of America Corp DE increased its position in ArcelorMittal by 56.7% during the 4th quarter. Bank of America Corp DE now owns 784,252 shares of the basic materials company's stock valued at $18,140,000 after purchasing an additional 283,758 shares during the period. Northern Trust Corp increased its position in ArcelorMittal by 31.7% during the 4th quarter. Northern Trust Corp now owns 1,153,924 shares of the basic materials company's stock valued at $26,690,000 after purchasing an additional 277,891 shares during the period. Finally, Cubist Systematic Strategies LLC purchased a new position in ArcelorMittal during the 1st quarter valued at $5,263,000. 9.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Barclays lowered shares of ArcelorMittal from an "overweight" rating to an "equal weight" rating in a report on Wednesday, July 16th. Wells Fargo & Company upgraded shares of ArcelorMittal to a "hold" rating in a report on Thursday, August 14th. Finally, Wall Street Zen lowered shares of ArcelorMittal from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $32.96.

About ArcelorMittal

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.