Ferroglobe (NASDAQ:GSM) Trading Down 4.9% - What's Next?

Key Points

• Shares fell ~4.9% intraday to about $3.96 on Tuesday on well-below-average volume, leaving the stock under its 50- and 200-day moving averages while analysts maintain a consensus Hold rating with a $6 target.
• Ferroglobe beat the latest quarter’s estimates (EPS of -$0.06 vs. -$0.07 expected; revenue $329.4M vs. $293.6M expected) but remains unprofitable with negative net margin and return on equity.
• The company raised its quarterly dividend to $0.015 (annualized $0.06, ~1.5% yield) and insiders — including the director and chairman — each bought 26,000 shares at $3.86, signaling notable insider confidence.

Ferroglobe PLC (NASDAQ:GSM - Get Free Report) shares dropped 4.9% during mid-day trading on Tuesday . The company traded as low as $4.02 and last traded at $3.9550. Approximately 291,486 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 1,316,926 shares. The stock had previously closed at $4.16.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on GSM shares. Zacks Research upgraded Ferroglobe from a "strong sell" rating to a "hold" rating in a report on Monday, January 12th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ferroglobe in a research report on Thursday, January 22nd. Finally, Wall Street Zen raised Ferroglobe from a "sell" rating to a "hold" rating in a report on Saturday, February 21st. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $6.00.

Ferroglobe Stock Down 3.7%

The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.97 and a current ratio of 1.66. The firm's 50-day simple moving average is $4.81 and its 200 day simple moving average is $4.68. The company has a market capitalization of $747.45 million, a PE ratio of -4.36 and a beta of 0.93.

Ferroglobe (NASDAQ:GSM - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The basic materials company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. Ferroglobe had a negative net margin of 12.78% and a negative return on equity of 8.65%. The company had revenue of $329.38 million during the quarter, compared to the consensus estimate of $293.60 million. As a group, equities research analysts forecast that Ferroglobe PLC will post 0.33 earnings per share for the current year.

Ferroglobe Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Monday, March 23rd were paid a dividend of $0.015 per share. This is a boost from Ferroglobe's previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $0.06 annualized dividend and a dividend yield of 1.5%. Ferroglobe's dividend payout ratio is presently -6.52%.

Insider Activity at Ferroglobe

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. California State Teachers Retirement System acquired a new stake in shares of Ferroglobe in the second quarter worth $27,000. State of Alaska Department of Revenue acquired a new stake in Ferroglobe in the 3rd quarter worth approximately $32,000. Quadrant Capital Group LLC boosted its position in Ferroglobe by 66.1% during the fourth quarter. Quadrant Capital Group LLC now owns 7,902 shares of the basic materials company's stock worth $37,000 after purchasing an additional 3,146 shares during the period. BNP Paribas Financial Markets grew its holdings in Ferroglobe by 1,017,300.0% during the second quarter. BNP Paribas Financial Markets now owns 10,174 shares of the basic materials company's stock valued at $37,000 after purchasing an additional 10,173 shares during the last quarter. Finally, Spire Wealth Management raised its position in shares of Ferroglobe by 49.0% in the fourth quarter. Spire Wealth Management now owns 8,334 shares of the basic materials company's stock valued at $39,000 after purchasing an additional 2,740 shares during the period. Institutional investors and hedge funds own 89.64% of the company's stock.

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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