Ferroglobe (NASDAQ:GSM) Shares Gap Down Following Weak Earnings

Key Points

• Ferroglobe PLC shares gapped down significantly, opening at $3.61 after closing at $4.04, following a disappointing earnings report with an EPS of ($0.08) that missed analysts' expectations.
• The company reported revenue of $386.86 million for the quarter, below the expected $398 million, resulting in a negative net margin of 3.80% despite a positive return on equity of 1.93%.
• In reaction to the earnings results, Wall Street Zen upgraded Ferroglobe's rating from "sell" to "hold," indicating a shift in analysts' outlook on the stock.

Ferroglobe PLC (NASDAQ:GSM - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $4.04, but opened at $3.61. Ferroglobe shares last traded at $4.43, with a volume of 476,476 shares traded.

The basic materials company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.06). Ferroglobe had a negative return on equity of 2.85% and a negative net margin of 6.99%. The company had revenue of $386.86 million during the quarter, compared to analyst estimates of $398.00 million.

Ferroglobe Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 22nd will be paid a $0.014 dividend. The ex-dividend date of this dividend is Monday, September 22nd. This represents a $0.06 annualized dividend and a yield of 1.4%. Ferroglobe's payout ratio is -10.53%.

Analysts Set New Price Targets

Separately, Wall Street Zen lowered Ferroglobe from a "hold" rating to a "sell" rating in a research note on Saturday.

Hedge Funds Weigh In On Ferroglobe

Institutional investors have recently added to or reduced their stakes in the business. Heck Capital Advisors LLC bought a new stake in shares of Ferroglobe during the fourth quarter valued at approximately $37,000. Creative Financial Designs Inc. ADV bought a new stake in shares of Ferroglobe during the first quarter valued at approximately $37,000. PNC Financial Services Group Inc. bought a new stake in Ferroglobe during the first quarter worth $38,000. R Squared Ltd bought a new stake in Ferroglobe during the second quarter worth $38,000. Finally, Raymond James Financial Inc. bought a new stake in Ferroglobe during the fourth quarter worth $42,000. 89.64% of the stock is owned by institutional investors and hedge funds.

Ferroglobe Price Performance

The company has a fifty day moving average of $4.13 and a 200-day moving average of $3.86. The firm has a market cap of $755.85 million, a P/E ratio of -7.11 and a beta of 1.62. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.56 and a quick ratio of 1.00.

Ferroglobe Company Profile

Ferroglobe PLC produces and sells silicon metal, and silicon and manganese-based ferroalloys in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics; and silicon metal for primary and secondary aluminum producers.