Ferroglobe (NASDAQ:GSM) Trading Down 9.8% - What's Next?

Key Points

• Shares dropped 9.8% intraday to about $4.27 (from a $4.73 close), trading as low as $4.33 on thin volume of 140,992 shares versus an average of ~1.22 million shares.
• Analysts are mixed but cautious: the consensus rating is Hold with a $6.00 price target (one Buy, one Hold, one Sell), and recent notes included upgrades from Zacks and Wall Street Zen while Weiss Ratings stayed on Sell.
• Operationally Ferroglobe reported a quarterly EPS of -$0.07 with negative net margin (-8.09%) and ROE, yet it declared a $0.015 quarterly dividend (1.5% yield) and saw insider purchases while institutional ownership is about 89.6%.

Shares of Ferroglobe PLC (NASDAQ:GSM - Get Free Report) traded down 9.8% on Thursday . The company traded as low as $4.33 and last traded at $4.2650. 140,992 shares were traded during mid-day trading, a decline of 88% from the average session volume of 1,219,320 shares. The stock had previously closed at $4.73.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Weiss Ratings reiterated a "sell (d)" rating on shares of Ferroglobe in a report on Thursday, January 22nd. Zacks Research upgraded Ferroglobe from a "strong sell" rating to a "hold" rating in a report on Monday, January 12th. Finally, Wall Street Zen upgraded 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 assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $6.00.

Ferroglobe Stock Performance

The stock has a market cap of $739.04 million, a P/E ratio of -6.60 and a beta of 1.03. The company has a fifty day moving average price of $4.48 and a 200 day moving average price of $4.63. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.66 and a quick ratio of 0.97.

Ferroglobe (NASDAQ:GSM - Get Free Report) last announced its earnings results on Tuesday, March 31st. The basic materials company reported ($0.07) earnings per share (EPS) for the quarter. The company had revenue of $347.75 million for the quarter. Ferroglobe had a negative net margin of 8.09% and a negative return on equity of 5.45%. On average, equities analysts expect that Ferroglobe PLC will post 0.13 EPS for the current year.

Ferroglobe Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 29th. Investors of record on Monday, June 22nd will be given a dividend of $0.015 per share. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $0.06 annualized dividend and a dividend yield of 1.5%. Ferroglobe's payout ratio is presently -10.00%.

Insider Buying and Selling at Ferroglobe

In other Ferroglobe news, Director De Fuentes Silvia Villar-Mir acquired 26,000 shares of the business's stock in a transaction on 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 completion of the transaction, 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 acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Chairman Madrid Javier Lopez bought 26,000 shares of the firm's stock in a transaction dated Monday, March 23rd. The shares were acquired at an average cost of $3.86 per share, with a total value of $100,360.00. Following the completion of the transaction, the chairman owned 147,200 shares in the company, valued at approximately $568,192. The trade was a 21.45% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 13.07% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ferroglobe

Several large investors have recently made changes to their positions in GSM. Hosking Partners LLP lifted its position in shares of Ferroglobe by 3.1% during the 4th quarter. Hosking Partners LLP now owns 11,215,616 shares of the basic materials company's stock valued at $52,040,000 after buying an additional 341,194 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Ferroglobe by 87.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 4,871,942 shares of the basic materials company's stock valued at $22,606,000 after buying an additional 2,277,344 shares during the last quarter. Old West Investment Management LLC lifted its position in shares of Ferroglobe by 17.3% during the 4th quarter. Old West Investment Management LLC now owns 3,798,781 shares of the basic materials company's stock valued at $17,626,000 after buying an additional 560,867 shares during the last quarter. Ameriprise Financial Inc. lifted its position in shares of Ferroglobe by 13.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 2,141,909 shares of the basic materials company's stock valued at $9,746,000 after buying an additional 250,982 shares during the last quarter. Finally, Ardsley Advisory Partners LP purchased a new position in shares of Ferroglobe during the 4th quarter valued at $9,837,000. 89.64% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.