Electrolux (OTCMKTS:ELUXY) Shares Gap Down After Analyst Downgrade

Key Points

• Electrolux shares gapped down before trading after Rothschild & Co Redburn cut the rating from "strong‑buy" to "hold," opening around $13.27 versus a prior close of $13.765 and last trading near $13.17.
• Analyst sentiment has turned negative—five Hold ratings and one Sell leave a MarketBeat consensus of "Reduce", with recent downgrades from Zacks and shifts to hold from Goldman Sachs and others.
• The company missed EPS (reported $0.36 vs. $0.98 expected) despite a revenue beat, and exhibits financial strains such as a high debt‑to‑equity ratio (3.57) and a thin net margin (0.69%).

Electrolux AB (OTCMKTS:ELUXY - Get Free Report)'s share price gapped down prior to trading on Tuesday after Rothschild & Co Redburn downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $13.7650, but opened at $13.27. Electrolux shares last traded at $13.1720, with a volume of 1,135 shares traded.

Several other brokerages also recently issued reports on ELUXY. The Goldman Sachs Group raised Electrolux to a "hold" rating in a research note on Friday, March 27th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Electrolux in a research note on Monday, February 2nd. Zacks Research downgraded Electrolux from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 2nd. Finally, Citigroup reissued a "neutral" rating on shares of Electrolux in a research report on Thursday, January 22nd. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce".

Electrolux Trading Down 4.3%

The business has a 50-day moving average of $14.82 and a 200-day moving average of $13.78. The company has a quick ratio of 0.66, a current ratio of 0.96 and a debt-to-equity ratio of 3.57. The stock has a market cap of $1.86 billion, a price-to-earnings ratio of 19.66 and a beta of 1.20.

Electrolux (OTCMKTS:ELUXY - Get Free Report) last released its quarterly earnings data on Friday, January 30th. The company reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.98 by ($0.62). The firm had revenue of $3.96 billion during the quarter, compared to analyst estimates of $3.79 billion. Electrolux had a return on equity of 10.82% and a net margin of 0.69%. As a group, research analysts forecast that Electrolux AB will post 1.57 earnings per share for the current year.

About Electrolux

Electrolux AB, trading on the OTCMKTS as ELUXY, is a global leader in the design, manufacture and marketing of home and professional appliances. The company's product portfolio spans major and small household appliances, including refrigerators, freezers, cooking ranges, dishwashers, laundry machines and vacuum cleaners, as well as specialty equipment for food-service and hospitality markets. Electrolux is recognized for its emphasis on energy efficiency, innovative design and user-focused functionality across its brands.

Founded in Sweden in 1919 through the merger of Elektromekaniska AB and Lux AB, Electrolux has grown into one of the world's largest appliance makers.

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