Almonty Industries (NASDAQ:ALM) Shares Climb 6.2% - Here's Why

Key Points

• Almonty shares rose 6.2% to $8.10 on Friday, while trading volume was about 90% below its average.
• Third-quarter revenue climbed to C$41.9 million as the Sangdong mine began production, but reports differed on earnings versus estimates, leaving the results’ performance against expectations unclear.
• Analysts’ consensus rating is Moderate Buy, with a $22.54 average price target; coverage also noted a potential C$43 million legal claim as a risk.

Almonty Industries Inc. (NASDAQ:ALM - Get Free Report) shares rose 6.2% during trading on Friday. The company traded as high as $8.19 and last traded at $8.1010. Approximately 578,440 shares were traded during mid-day trading, a decline of 90% from the average session volume of 5,850,697 shares. The stock had previously closed at $7.63.

Trending Headlines about Almonty Industries

These are some of the ALM headlines that stood out recently:

• Positive Sentiment: Third-quarter revenue reached C$41.9 million, with sales of $29.4 million and gross profit of $18.3 million reported in another account. The company attributed the revenue jump to Sangdong starting production, supporting the outlook for growth as the mine ramps up. Almonty revenue jumps as Sangdong starts production Almonty Q3 earnings details
• Negative Sentiment: Quarterly earnings assessments were inconsistent: MarketBeat reported EPS of $0.12, above its $0.07 consensus, while Zacks said EPS was $0.03 and missed its $0.07 estimate. Zacks also reported a revenue-estimate miss, highlighting uncertainty about how results compare with expectations. Zacks Q3 estimate comparison
• Negative Sentiment: A report flags a potential C$43 million legal claim, which could create financial or operational uncertainty if it proceeds. Report on potential Canadian claim

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Weiss Ratings upgraded Almonty Industries from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 25th. The Goldman Sachs Group started coverage on Almonty Industries in a research note on Thursday, September 24th. They issued a "hold" rating and a $13.00 price target for the company. B. Riley Financial decreased their price objective on Almonty Industries from $25.00 to $20.00 and set a "buy" rating on the stock in a report on Tuesday, October 27th. Jefferies Financial Group began coverage on Almonty Industries in a report on Wednesday, September 2nd. They issued a "buy" rating and a $26.25 price objective on the stock. Finally, DA Davidson reiterated a "buy" rating and set a $33.00 price objective on shares of Almonty Industries in a research report on Tuesday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $22.54.

Almonty Industries Stock Performance

The stock has a 50 day simple moving average of $11.80 and a 200 day simple moving average of $15.65. The company has a current ratio of 9.58, a quick ratio of 9.51 and a debt-to-equity ratio of 1.37. The stock has a market cap of $2.33 billion, a P/E ratio of 50.63 and a beta of 4.65.

Institutional Trading of Almonty Industries

Several large investors have recently modified their holdings of the stock. Fulcrum Asset Management LLP bought a new position in shares of Almonty Industries in the third quarter worth $32,000. Alps Advisors Inc. grew its stake in Almonty Industries by 2.7% during the third quarter. Alps Advisors Inc. now owns 102,669 shares of the company's stock worth $1,351,000 after buying an additional 2,659 shares in the last quarter. Pin Oak Investment Advisors Inc. acquired a new stake in Almonty Industries during the second quarter worth about $53,000. Nykredit A S bought a new position in Almonty Industries in the 2nd quarter valued at about $58,000. Finally, Royal Bank of Canada increased its holdings in Almonty Industries by 6.1% in the 1st quarter. Royal Bank of Canada now owns 74,732 shares of the company's stock valued at $1,082,000 after buying an additional 4,280 shares during the period.

Almonty Industries Company Profile

Almonty Industries Inc. is a mining company focused on tungsten, a metal used in applications such as cutting tools, industrial machinery, electronics and defense. The company produces tungsten concentrate and develops and operates tungsten mining assets. Its portfolio includes the Panasqueira mine in Portugal and the Los Santos mine in Spain, as well as the Sangdong tungsten project in South Korea. Almonty's activities span Europe and Asia, with Sangdong representing a major project in the company's effort to expand tungsten supply outside China.

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