POSCO (NYSE:PKX) Hits New 52-Week High on Strong Earnings

Key Points

• POSCO shares rallied to a new 52-week high after quarterly results beat expectations — EPS of $1.01 vs. $0.89 est. and revenue of $11.88B vs. $11.75B — with the stock trading as high as $83.83 (last $84.38) from a $78.71 close.
• Analyst reaction is mixed: UBS upgraded to Buy and Weiss moved to Hold, while Zacks cut to a Strong Sell, leaving a MarketBeat average rating of Hold.
• POSCO has a market capitalization of $25.56 billion and a PE of 50.07, and several institutional investors made modest additions to their stakes in recent quarters.

POSCO (NYSE:PKX - Get Free Report) shares reached a new 52-week high during trading on Monday following a stronger than expected earnings report. The stock traded as high as $83.83 and last traded at $84.38, with a volume of 121562 shares. The stock had previously closed at $78.71.

The basic materials company reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.89 by $0.12. POSCO had a return on equity of 1.35% and a net margin of 1.19%.The company had revenue of $11.88 billion during the quarter, compared to analysts' expectations of $11.75 billion.

Analysts Set New Price Targets

A number of equities analysts have commented on PKX shares. Weiss Ratings upgraded shares of POSCO from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, April 22nd. UBS Group upgraded shares of POSCO from a "neutral" rating to a "buy" rating in a research report on Monday, April 27th. Finally, Zacks Research lowered POSCO from a "hold" rating to a "strong sell" rating in a report on Thursday, April 9th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold".

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of POSCO during the 4th quarter worth approximately $25,000. Founders Capital Management grew its holdings in POSCO by 100.0% in the third quarter. Founders Capital Management now owns 600 shares of the basic materials company's stock valued at $30,000 after purchasing an additional 300 shares during the last quarter. Allworth Financial LP increased its position in shares of POSCO by 51.6% in the third quarter. Allworth Financial LP now owns 682 shares of the basic materials company's stock valued at $34,000 after buying an additional 232 shares in the last quarter. Headlands Technologies LLC raised its stake in shares of POSCO by 1,276.9% during the 2nd quarter. Headlands Technologies LLC now owns 1,432 shares of the basic materials company's stock worth $69,000 after buying an additional 1,328 shares during the last quarter. Finally, Inspire Investing LLC purchased a new stake in shares of POSCO in the 4th quarter worth about $85,000.

POSCO Stock Performance

The firm has a market capitalization of $25.56 billion, a PE ratio of 50.07 and a beta of 1.58. The firm's 50-day moving average is $63.14 and its 200 day moving average is $58.59.

POSCO Company Profile

POSCO NYSE: PKX is a South Korea–based integrated steel producer founded in 1968 as Pohang Iron and Steel Company. Headquartered in Pohang, the company grew rapidly as part of South Korea's industrialization program and developed large, integrated steelworks—most notably in Pohang and Gwangyang—that helped establish POSCO among the world's largest steelmakers. It is structured as a diversified industrial group with steelmaking at its core and a range of downstream and trading businesses.

The company's primary activities include ironmaking and steelmaking, producing a wide array of steel products such as hot-rolled and cold-rolled sheets, coated steels, plates, stainless and special steels, long products (bars and wire rods), and seamless pipes.

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