Outokumpu (OTCMKTS:OUTKY) Shares Gap Up - What's Next?

Key Points

• Outokumpu gapped up, opening at $3.05 from a prior close of $2.69 (about a 13.4% jump) in pre-market trading, though trading volume was light (625 shares reported).
• Analyst sentiment is mixed-to-neutral with an average rating of "Hold" (1 Buy, 4 Hold, 1 Sell); recent notes include downgrades and reiterated holds from Jefferies, Deutsche Bank and Citigroup, while Zacks moved the stock from Strong Sell to Hold.
• The company reported an EPS beat for the quarter (‑$0.08 vs. consensus ‑$0.13) on $1.35 billion revenue, but still shows a negative net margin and return on equity, leaving fundamentals weak despite the beat.

Outokumpu (OTCMKTS:OUTKY - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $2.69, but opened at $3.05. Outokumpu shares last traded at $3.05, with a volume of 625 shares traded.

Wall Street Analyst Weigh In

A number of research firms have recently commented on OUTKY. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Outokumpu in a research note on Tuesday. Zacks Research raised Outokumpu from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 1st. Jefferies Financial Group downgraded Outokumpu from a "buy" rating to a "hold" rating in a research note on Friday, January 16th. Finally, Citigroup reissued a "neutral" rating on shares of Outokumpu in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold".

Outokumpu Stock Up 13.4%

The stock has a 50 day moving average price of $2.96 and a 200 day moving average price of $2.61. The company has a market cap of $2.89 billion, a P/E ratio of -19.06 and a beta of 0.55. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.58 and a current ratio of 1.63.

Outokumpu (OTCMKTS:OUTKY - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.05. The company had revenue of $1.35 billion for the quarter. Outokumpu had a negative return on equity of 4.00% and a negative net margin of 2.55%. Research analysts expect that Outokumpu will post 0.07 earnings per share for the current fiscal year.

About Outokumpu

Outokumpu Oyj is a Finland-based global producer of stainless steel products and one of Europe's leading stainless steel manufacturers. Headquartered in Helsinki, the company traces its roots back to mining operations established in 1910 and has, over decades, transformed into a focused stainless steel specialist. Outokumpu's core business encompasses the production of high-grade stainless steel in flat and long product forms, serving a broad range of industries including automotive, construction, energy, and consumer goods.

The company's primary product portfolio includes cold-rolled and hot-rolled coils and sheets, plates, strips, bars and wire, as well as tailor-made and value-added solutions such as precision-cut blanks and welded tubes.

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