Ferroglobe (NASDAQ:GSM) Releases Quarterly Earnings Results, Hits Expectations

Key Points

• Earnings: Ferroglobe reported EPS of ($0.07) that matched analysts' estimates and revenue of $347.8M above consensus, but the company remains unprofitable with a -12.78% net margin and -8.65% ROE.
• Dividend hike & insider buying: The quarterly dividend was raised to $0.015 (annualized $0.06, ~1.3% yield) and two senior insiders each purchased 26,000 shares at about $3.86, materially increasing their stakes.
• Market reaction & outlook: Shares rose ~1.9% to $4.78 on higher-than-average volume, and analysts' consensus is a "Hold" with a $6.00 target price.

Ferroglobe (NASDAQ:GSM - Get Free Report) released its quarterly earnings results on Tuesday. The basic materials company reported ($0.07) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.07), FiscalAI reports. The company had revenue of $347.75 million during the quarter, compared to the consensus estimate of $341.50 million. Ferroglobe had a negative net margin of 12.78% and a negative return on equity of 8.65%.

Ferroglobe Stock Up 1.9%

Shares of NASDAQ GSM traded up $0.09 during midday trading on Tuesday, hitting $4.78. The stock had a trading volume of 1,520,337 shares, compared to its average volume of 868,443. The business's 50 day moving average is $4.48 and its 200-day moving average is $4.63. Ferroglobe has a 52 week low of $3.04 and a 52 week high of $5.74. The company has a quick ratio of 0.97, a current ratio of 1.66 and a debt-to-equity ratio of 0.24. The company has a market cap of $892.09 million, a P/E ratio of -5.20 and a beta of 1.03.

Ferroglobe Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Monday, March 23rd were issued a $0.015 dividend. This represents a $0.06 annualized dividend and a yield of 1.3%. This is a boost from Ferroglobe's previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Monday, March 23rd. Ferroglobe's dividend payout ratio is presently -6.52%.

Insider Buying and Selling

In other Ferroglobe news, Director De Fuentes Silvia Villar-Mir bought 26,000 shares of Ferroglobe stock in a transaction on Monday, March 23rd. The stock was acquired at an average price of $3.86 per share, with a total value of $100,360.00. Following the acquisition, the director owned 121,226 shares in the company, valued at approximately $467,932.36. This trade represents a 27.30% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Madrid Javier Lopez purchased 26,000 shares of the firm's stock in a transaction dated Monday, March 23rd. The stock was acquired at an average price of $3.86 per share, with a total value of $100,360.00. Following the purchase, the chairman directly owned 147,200 shares of the company's stock, valued at approximately $568,192. The trade was a 21.45% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 13.07% of the stock is owned by insiders.

Institutional Trading of Ferroglobe

A number of large investors have recently made changes to their positions in the stock. California State Teachers Retirement System bought a new position in Ferroglobe during the second quarter valued at approximately $27,000. BNP Paribas Financial Markets raised its stake in Ferroglobe by 1,017,300.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 10,174 shares of the basic materials company's stock valued at $37,000 after buying an additional 10,173 shares during the last quarter. Quadrant Capital Group LLC lifted its holdings in shares of Ferroglobe by 66.1% during the 4th quarter. Quadrant Capital Group LLC now owns 7,902 shares of the basic materials company's stock valued at $37,000 after buying an additional 3,146 shares during the period. Prudential Financial Inc. bought a new position in shares of Ferroglobe during the 2nd quarter valued at $51,000. Finally, Coldstream Capital Management Inc. purchased a new position in shares of Ferroglobe in the 3rd quarter worth $52,000. 89.64% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

GSM has been the subject of a number of research reports. Weiss Ratings reiterated a "sell (d)" rating on shares of Ferroglobe in a report on Thursday, January 22nd. Zacks Research raised shares of Ferroglobe from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Finally, Wall Street Zen raised shares of Ferroglobe from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $6.00.

About Ferroglobe

Ferroglobe PLC is a leading producer of specialty metals and alloys, serving a diverse range of industrial customers worldwide. The company's core operations focus on the manufacture of silicon metal, silicon-based alloys, manganese-based alloys and rare earth alloys, which are essential inputs for the aluminum, steel, chemical and electronics industries. Ferroglobe's product portfolio includes high-purity silicon, ferrosilicon, silicon manganese, manganese alloys and various recarburizers used to enhance metal strength, durability and conductivity.

With production facilities located across North America, Europe, South America and Africa, Ferroglobe maintains a global footprint that allows it to supply customers on multiple continents.

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