Ferroglobe PLC $GSM Shares Sold by Wolf Hill Capital Management LP

Key Points

• Wolf Hill Capital cut its stake in Ferroglobe (NASDAQ:GSM) by 49.0% in Q3, selling 3,763,337 shares and now holds 3,918,232 shares (~2.10% of the company) worth about $17.8M.
• Ferroglobe trades near $4.54 with a market cap of roughly $846M, a negative P/E (-4.93) and negative margins, though it beat quarterly EPS estimates (‑$0.06 vs. ‑$0.07) and reported $329.4M in revenue.
• The company raised its quarterly dividend to $0.015 (annualized $0.06, ~1.3% yield), and analyst sentiment has shifted from strong sell/sell toward hold with an average target of $6.00.

Wolf Hill Capital Management LP lessened its stake in Ferroglobe PLC (NASDAQ:GSM - Free Report) by 49.0% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 3,918,232 shares of the basic materials company's stock after selling 3,763,337 shares during the quarter. Ferroglobe accounts for approximately 1.6% of Wolf Hill Capital Management LP's portfolio, making the stock its 20th biggest position. Wolf Hill Capital Management LP owned approximately 2.10% of Ferroglobe worth $17,828,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in GSM. California State Teachers Retirement System acquired a new stake in Ferroglobe in the second quarter valued at approximately $27,000. State of Alaska Department of Revenue acquired a new stake in shares of Ferroglobe in the 3rd quarter valued at $32,000. BNP Paribas Financial Markets lifted its position in shares of 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 worth $37,000 after purchasing an additional 10,173 shares during the last quarter. Ameritas Investment Partners Inc. purchased a new stake in shares of Ferroglobe during the 2nd quarter worth $45,000. Finally, Truist Financial Corp acquired a new position in shares of Ferroglobe during the third quarter worth $46,000. 89.64% of the stock is owned by institutional investors and hedge funds.

Ferroglobe Stock Performance

NASDAQ:GSM traded down $0.14 during trading hours on Friday, reaching $4.54. 227,983 shares of the company's stock were exchanged, compared to its average volume of 1,243,024. The firm has a market capitalization of $846.37 million, a price-to-earnings ratio of -4.93 and a beta of 0.93. The company has a 50-day moving average of $5.00 and a 200 day moving average of $4.68. The company has a quick ratio of 0.97, a current ratio of 1.66 and a debt-to-equity ratio of 0.07. Ferroglobe PLC has a 1-year low of $2.97 and a 1-year high of $5.74.

Ferroglobe (NASDAQ:GSM - Get Free Report) last posted its quarterly earnings data on Tuesday, February 17th. The basic materials company reported ($0.06) 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 for the quarter, compared to analyst estimates of $293.60 million. Research analysts anticipate that Ferroglobe PLC will post 0.33 EPS for the current year.

Ferroglobe Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 30th. Investors of record on Monday, March 23rd will be given a $0.015 dividend. This is a boost from Ferroglobe's previous quarterly dividend of $0.01. The ex-dividend date is Monday, March 23rd. This represents a $0.06 annualized dividend and a yield of 1.3%. Ferroglobe's payout ratio is presently -6.52%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Wall Street Zen raised Ferroglobe from a "sell" rating to a "hold" rating in a report on Saturday, February 21st. Weiss Ratings reiterated a "sell (d)" rating on shares of Ferroglobe in a report on Thursday, January 22nd. Finally, Zacks Research upgraded Ferroglobe from a "strong sell" rating to a "hold" rating in a research note on Monday, January 12th. One equities 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 stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $6.00.

Ferroglobe Profile

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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