POSCO (NYSE:PKX) Sees Unusually-High Trading Volume on Better-Than-Expected Earnings

Key Points

• POSCO beat quarterly expectations: The steelmaker reported EPS of $1.30, exceeding the $0.85 consensus estimate, while revenue reached $12.43 billion versus forecasts of $12.05 billion.
• Despite the earnings beat, shares traded at approximately $52.98, below the prior close of $54.49, amid unusually high volume of 225,119 shares.
• Analyst sentiment remains mixed, with ratings split among Buy, Hold, and Sell; MarketBeat lists a consensus rating of Hold.

Shares of POSCO (NYSE:PKX - Get Free Report) saw unusually-strong trading volume on Friday following a better than expected earnings announcement. 225,119 shares changed hands during mid-day trading, a decline of 22% from the previous session's volume of 287,888 shares.The stock last traded at $52.9830 and had previously closed at $54.49.

The basic materials company reported $1.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.45. POSCO had a net margin of 1.19% and a return on equity of 1.34%. The company had revenue of $12.43 billion for the quarter, compared to analyst estimates of $12.05 billion.

Analysts Set New Price Targets

Several research firms recently commented on PKX. Zacks Research upgraded POSCO from a "strong sell" rating to a "hold" rating in a research report on Monday, June 8th. Weiss Ratings downgraded shares of POSCO from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 23rd. UBS Group raised shares of POSCO from a "neutral" rating to a "buy" rating in a research note on Monday, April 27th. Finally, Wall Street Zen lowered shares of POSCO from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold".

Hedge Funds Weigh In On POSCO

A number of large investors have recently modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in POSCO in the fourth quarter worth approximately $25,000. Allworth Financial LP raised its stake in shares of POSCO by 51.6% during the third quarter. Allworth Financial LP now owns 682 shares of the basic materials company's stock worth $34,000 after acquiring an additional 232 shares in the last quarter. Headlands Technologies LLC lifted its holdings in shares of POSCO by 1,276.9% in the 2nd quarter. Headlands Technologies LLC now owns 1,432 shares of the basic materials company's stock worth $69,000 after acquiring an additional 1,328 shares during the last quarter. Inspire Investing LLC purchased a new stake in shares of POSCO in the 4th quarter valued at $85,000. Finally, Raymond James Financial Inc. bought a new position in shares of POSCO during the 2nd quarter valued at $95,000.

POSCO Price Performance

The firm's 50 day simple moving average is $58.00 and its two-hundred day simple moving average is $62.82. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.90 and a quick ratio of 1.30. The firm has a market capitalization of $16.07 billion, a P/E ratio of 31.36 and a beta of 1.57.

About POSCO

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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