Investors Buy High Volume of Call Options on ArcelorMittal (NYSE:MT)

Key Points

• ArcelorMittal experienced a significant surge in options trading, with investors purchasing 8,846 call options, marking a 232% increase from the average daily volume.
• The company's stock rose 4.4%, reaching $37.73, while it has a market capitalization of $30.91 billion.
• Recent analyst reports reflect mixed sentiments, with some brokers downgrading ArcelorMittal's stock rating from "buy" to "hold" while maintaining a consensus price target of $33.45.

ArcelorMittal (NYSE:MT - Get Free Report) saw unusually large options trading activity on Wednesday. Investors purchased 8,846 call options on the stock. This represents an increase of 232% compared to the average daily volume of 2,668 call options.

ArcelorMittal Stock Up 4.4%

MT traded up $1.58 during midday trading on Wednesday, reaching $37.73. The company's stock had a trading volume of 790,871 shares, compared to its average volume of 1,895,095. The stock's 50-day moving average is $33.85 and its 200-day moving average is $31.51. ArcelorMittal has a 1 year low of $21.59 and a 1 year high of $38.30. The company has a current ratio of 1.40, a quick ratio of 0.59 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $30.91 billion, a price-to-earnings ratio of 11.65, a PEG ratio of 0.16 and a beta of 1.64.

ArcelorMittal (NYSE:MT - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The basic materials company reported $1.32 EPS for the quarter, missing analysts' consensus estimates of $1.33 by ($0.01). ArcelorMittal had a net margin of 4.11% and a return on equity of 4.99%. The firm had revenue of $15.93 billion for the quarter, compared to analysts' expectations of $15.48 billion. During the same quarter in the previous year, the company earned $0.63 EPS. The company's quarterly revenue was down 2.0% compared to the same quarter last year. As a group, research analysts expect that ArcelorMittal will post 3.72 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MT. Barclays lowered shares of ArcelorMittal from an "overweight" rating to an "equal weight" rating in a research report on Wednesday, July 16th. Wells Fargo & Company upgraded shares of ArcelorMittal to a "hold" rating in a research report on Thursday, August 14th. Finally, Wall Street Zen cut shares of ArcelorMittal from a "buy" rating to a "hold" rating in a research report on Sunday, September 21st. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $33.45.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Janney Montgomery Scott LLC lifted its position in ArcelorMittal by 4.5% during the second quarter. Janney Montgomery Scott LLC now owns 7,359 shares of the basic materials company's stock valued at $232,000 after purchasing an additional 318 shares during the period. Hexagon Capital Partners LLC lifted its position in ArcelorMittal by 25.4% during the first quarter. Hexagon Capital Partners LLC now owns 1,779 shares of the basic materials company's stock valued at $51,000 after purchasing an additional 360 shares during the period. PNC Financial Services Group Inc. lifted its position in ArcelorMittal by 4.0% during the first quarter. PNC Financial Services Group Inc. now owns 9,438 shares of the basic materials company's stock valued at $272,000 after purchasing an additional 362 shares during the period. Evergreen Capital Management LLC raised its position in ArcelorMittal by 3.0% in the first quarter. Evergreen Capital Management LLC now owns 14,097 shares of the basic materials company's stock worth $407,000 after acquiring an additional 405 shares during the period. Finally, US Bancorp DE raised its position in ArcelorMittal by 2.7% in the first quarter. US Bancorp DE now owns 15,496 shares of the basic materials company's stock worth $447,000 after acquiring an additional 411 shares during the period. Institutional investors own 9.29% of the company's stock.

ArcelorMittal Company Profile

ArcelorMittal SA, together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.