POSCO (NYSE:PKX) Shares Gap Up - Here's Why

Key Points

• POSCO shares jumped 4.2%, opening at $59.46 versus the prior close of $56.58, amid trading volume of 14,404 shares.
• Analyst sentiment improved, with Zacks Research upgrading the stock to “strong buy,” UBS to “buy,” and MarketBeat reporting an overall average rating of “Buy.”
• POSCO exceeded quarterly expectations, reporting $1.30 in EPS versus the $0.85 consensus and revenue of $12.43 billion versus estimates of $11.96 billion.

POSCO (NYSE:PKX - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $56.58, but opened at $59.46. POSCO shares last traded at $59.19, with a volume of 14,404 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on PKX shares. Zacks Research raised POSCO from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 31st. Wall Street Zen upgraded POSCO from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Weiss Ratings raised POSCO from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, July 31st. Finally, UBS Group raised POSCO from a "neutral" rating to a "buy" rating in a report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, POSCO has an average rating of "Buy".

POSCO Stock Up 4.2%

The company's 50 day moving average price is $54.91 and its 200 day moving average price is $62.61. The company has a quick ratio of 1.30, a current ratio of 1.90 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $17.83 billion, a price-to-earnings ratio of 22.32 and a beta of 1.56.

POSCO (NYSE:PKX - Get Free Report) last released its earnings results on Thursday, July 30th. The basic materials company reported $1.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.45. The firm had revenue of $12.43 billion for the quarter, compared to the consensus estimate of $11.96 billion. POSCO had a return on equity of 2.00% and a net margin of 1.79%. As a group, research analysts forecast that POSCO will post 4.91 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in POSCO in the 4th quarter worth approximately $25,000. Allworth Financial LP lifted its stake in POSCO by 51.6% during the 3rd quarter. Allworth Financial LP now owns 682 shares of the basic materials company's stock valued at $34,000 after acquiring an additional 232 shares during the period. Headlands Technologies LLC lifted its stake in POSCO by 1,276.9% during the 2nd quarter. Headlands Technologies LLC now owns 1,432 shares of the basic materials company's stock valued at $69,000 after acquiring an additional 1,328 shares during the period. Inspire Investing LLC purchased a new stake in shares of POSCO in the 4th quarter valued at $85,000. Finally, Raymond James Financial Inc. purchased a new position in shares of POSCO during the second quarter worth $95,000.

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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