Stock Traders Purchase Large Volume of ArcelorMittal Put Options (NYSE:MT)

Key Points

• Unusually high put-option activity: Traders purchased 3,618 ArcelorMittal put options, about 222% above the typical daily volume, signaling increased hedging or bearish interest.
• Analyst sentiment remains mixed: Five analysts rate the stock a Buy and seven rate it Hold, resulting in an overall “Hold” consensus and an average price target of $74.80. Morgan Stanley is notably bullish, assigning an $82 target and Overweight rating.
• Shares and earnings under pressure: ArcelorMittal closed at $69.86, below its 50-day average of $72.58, while its latest quarterly EPS and revenue came in below consensus estimates. Hedge funds and institutional investors own 9.29% of the company.

ArcelorMittal (NYSE:MT - Get Free Report) was the recipient of unusually large options trading on Monday. Traders bought 3,618 put options on the stock. This is an increase of approximately 222% compared to the typical daily volume of 1,123 put options.

Analyst Ratings Changes

A number of research analysts recently issued reports on MT shares. Wells Fargo & Company boosted their price objective on ArcelorMittal from $62.00 to $69.00 and gave the company an "equal weight" rating in a research note on Friday, July 31st. Citigroup restated a "buy" rating on shares of ArcelorMittal in a research note on Tuesday, August 4th. Morgan Stanley started coverage on shares of ArcelorMittal in a report on Monday, August 24th. They set an "overweight" rating and a $82.00 price target on the stock. Weiss Ratings upgraded shares of ArcelorMittal from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 11th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of ArcelorMittal in a research note on Monday, July 6th. Five equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $74.80.

ArcelorMittal Price Performance

Shares of ArcelorMittal stock traded down $0.84 on Monday, hitting $69.86. 908,104 shares of the company traded hands, compared to its average volume of 1,767,262. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.57 and a current ratio of 1.43. The stock has a market capitalization of $54.14 billion, a P/E ratio of 29.59, a price-to-earnings-growth ratio of 0.51 and a beta of 1.55. The business has a 50-day simple moving average of $72.58 and a 200 day simple moving average of $65.12. ArcelorMittal has a 52 week low of $35.71 and a 52 week high of $79.68.

ArcelorMittal (NYSE:MT - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.90 EPS for the quarter, missing the consensus estimate of $1.18 by ($0.28). The company had revenue of $16.76 billion for the quarter, compared to the consensus estimate of $17.56 billion. ArcelorMittal had a net margin of 2.88% and a return on equity of 4.20%. The firm's revenue for the quarter was up 5.2% on a year-over-year basis. During the same period last year, the company earned $1.32 EPS. Research analysts expect that ArcelorMittal will post 4.41 earnings per share for the current fiscal year.

Institutional Trading of ArcelorMittal

Several hedge funds have recently made changes to their positions in MT. Maple Rock Capital Partners Inc. boosted its holdings in shares of ArcelorMittal by 54.9% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 2,190,860 shares of the basic materials company's stock worth $131,934,000 after purchasing an additional 776,595 shares during the period. First Trust Advisors LP raised its stake in shares of ArcelorMittal by 275.8% in the first quarter. First Trust Advisors LP now owns 55,311 shares of the basic materials company's stock valued at $2,875,000 after acquiring an additional 40,593 shares during the period. Quantinno Capital Management LP lifted its holdings in shares of ArcelorMittal by 11.7% in the 1st quarter. Quantinno Capital Management LP now owns 335,931 shares of the basic materials company's stock worth $17,461,000 after acquiring an additional 35,298 shares during the last quarter. TD Waterhouse Canada Inc. lifted its holdings in shares of ArcelorMittal by 822.3% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 16,491 shares of the basic materials company's stock worth $978,000 after acquiring an additional 14,703 shares during the last quarter. Finally, Icon Advisers Inc. Co. boosted its stake in shares of ArcelorMittal by 140.7% during the 1st quarter. Icon Advisers Inc. Co. now owns 65,000 shares of the basic materials company's stock worth $3,379,000 after purchasing an additional 38,000 shares during the period. 9.29% of the stock is currently owned by hedge funds and other institutional investors.

ArcelorMittal Company Profile

ArcelorMittal SA is a global steel and mining company with operations spanning the Americas, Europe and Africa. The company produces and sells steel products for industries including automotive, construction, infrastructure, energy, packaging and general manufacturing.

Its portfolio includes flat steel, long steel, tubular products and tailored solutions designed for specific industrial applications. ArcelorMittal also operates iron ore mining and processing activities, which supply raw materials for its steelmaking operations and support its vertically integrated business model.

ArcelorMittal was formed in 2006 through the merger of Arcelor and Mittal Steel.

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