Citigroup Downgrades Sandvik (OTCMKTS:SDVKY) to Hold

Key Points

• Citigroup downgraded Sandvik from "strong-buy" to "hold," and several other brokers have trimmed ratings, leaving the stock with an average analyst rating of Hold.
• Recent quarter reported $0.36 EPS (missed by $0.01) while revenue of $3.64 billion beat estimates, and analysts forecast about $1.27 in EPS for the current year.
• Valuation and price: shares opened at $43.65 (near the 1-year high of $44.43) with a market cap of ~$54.8 billion, a P/E of 36.07, and 50-/200-day SMAs of $40.64/$34.82.

Sandvik (OTCMKTS:SDVKY - Get Free Report) was downgraded by equities research analysts at Citigroup from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other analysts also recently weighed in on the stock. Morgan Stanley downgraded shares of Sandvik from an "overweight" rating to an "equal weight" rating in a report on Thursday, March 12th. Zacks Research lowered Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 16th. Jefferies Financial Group lowered Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Sunday, January 25th. Barclays reissued an "overweight" rating on shares of Sandvik in a research report on Wednesday, February 25th. Finally, The Goldman Sachs Group reissued a "sell" rating on shares of Sandvik in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold".

Sandvik Stock Up 0.6%

Shares of OTCMKTS SDVKY opened at $43.65 on Monday. The company has a 50 day simple moving average of $40.64 and a 200-day simple moving average of $34.82. The company has a market capitalization of $54.75 billion, a P/E ratio of 36.07, a P/E/G ratio of 1.69 and a beta of 1.52. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.94 and a quick ratio of 1.02. Sandvik has a 1 year low of $18.99 and a 1 year high of $44.43.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last announced its quarterly earnings results on Tuesday, January 27th. The industrial products company reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.37 by ($0.01). The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.38 billion. Sandvik had a return on equity of 16.94% and a net margin of 12.16%. On average, equities research analysts predict that Sandvik will post 1.27 earnings per share for the current year.

Hedge Funds Weigh In On Sandvik

An institutional investor recently raised its position in Sandvik stock. Salomon & Ludwin LLC grew its holdings in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 3,795.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 857 shares of the industrial products company's stock after acquiring an additional 835 shares during the period. Salomon & Ludwin LLC's holdings in Sandvik were worth $25,000 as of its most recent filing with the Securities & Exchange Commission. Institutional investors own 0.74% of the company's stock.

Sandvik Company Profile

Sandvik OTCMKTS: SDVKY is a global engineering group headquartered in Sandviken, Sweden, with roots dating back to 1862 when it was founded by Göran Fredrik Göransson. The company designs, manufactures and services advanced products and solutions for the mining and construction industries, metalworking and material technology markets. Sandvik serves customers worldwide with a broad portfolio of industrial products, equipment and aftermarket services.

Sandvik's core activities span three broad areas: metal-cutting and machining solutions, mining and rock excavation equipment, and specialty materials and components.

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