Solas Capital Management LLC Acquires 400,000 Shares of Algoma Steel Group Inc. $ASTL

Key Points

• Solas Capital Management LLC increased its stake in Algoma Steel Group Inc. by 37.7%, owning 1,460,646 shares after purchasing an additional 400,000 shares, making it the firm's 11th largest position.
• Algoma Steel recently reported a significant earnings miss with a loss of ($0.74) per share, falling short of the consensus estimate of ($0.45) by ($0.29).
• Institutional investors currently hold 72.00% of Algoma Steel Group's stock, indicating strong interest from the investment community.

Solas Capital Management LLC raised its holdings in Algoma Steel Group Inc. (NASDAQ:ASTL - Free Report) by 37.7% during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,460,646 shares of the company's stock after purchasing an additional 400,000 shares during the quarter. Algoma Steel Group accounts for approximately 4.5% of Solas Capital Management LLC's investment portfolio, making the stock its 11th biggest position. Solas Capital Management LLC owned about 1.39% of Algoma Steel Group worth $7,917,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the business. Trexquant Investment LP acquired a new stake in shares of Algoma Steel Group in the 1st quarter valued at $233,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp boosted its holdings in shares of Algoma Steel Group by 24.9% in the 1st quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 53,789 shares of the company's stock valued at $292,000 after purchasing an additional 10,713 shares in the last quarter. Quantbot Technologies LP boosted its holdings in shares of Algoma Steel Group by 190.0% in the 1st quarter. Quantbot Technologies LP now owns 53,574 shares of the company's stock valued at $290,000 after purchasing an additional 35,102 shares in the last quarter. Terril Brothers Inc. boosted its holdings in shares of Algoma Steel Group by 62.1% in the 1st quarter. Terril Brothers Inc. now owns 35,500 shares of the company's stock valued at $192,000 after purchasing an additional 13,600 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in shares of Algoma Steel Group in the 1st quarter valued at $1,652,000. Institutional investors and hedge funds own 72.00% of the company's stock.

Analyst Ratings Changes

ASTL has been the topic of a number of research analyst reports. Wall Street Zen downgraded Algoma Steel Group from a "hold" rating to a "sell" rating in a report on Saturday, August 2nd. BMO Capital Markets downgraded Algoma Steel Group from a "strong-buy" rating to a "hold" rating in a report on Monday, June 2nd. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, Algoma Steel Group currently has an average rating of "Hold".

Algoma Steel Group Trading Up 3.6%

ASTL traded up $0.18 during midday trading on Thursday, hitting $4.98. 1,202,562 shares of the company were exchanged, compared to its average volume of 1,022,711. The firm has a market capitalization of $522.03 million, a P/E ratio of -2.23 and a beta of 1.62. Algoma Steel Group Inc. has a 1-year low of $4.17 and a 1-year high of $12.14. The firm's 50 day moving average price is $5.76 and its 200-day moving average price is $5.83. The company has a quick ratio of 0.98, a current ratio of 2.46 and a debt-to-equity ratio of 0.47.

Algoma Steel Group (NASDAQ:ASTL - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported ($0.74) EPS for the quarter, missing the consensus estimate of ($0.45) by ($0.29). The company had revenue of $433.14 million for the quarter, compared to analyst estimates of $577.67 million. Algoma Steel Group had a negative return on equity of 22.24% and a negative net margin of 13.51%. As a group, equities analysts forecast that Algoma Steel Group Inc. will post -0.63 EPS for the current fiscal year.

Algoma Steel Group Profile

Algoma Steel Group Inc produces and sells steel products primarily in North America. The company provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural product manufacturers, and the light manufacturing and transportation industries; and plate steel products that consist of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, and military applications.