ArcelorMittal (NYSE:MT) Reaches New 12-Month High - Time to Buy?

Key Points

• ArcelorMittal shares reached a new 52-week high, trading as high as $79.68 and last changing hands near $77.14.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy and seven rate it a Hold, producing a consensus “Hold” rating and an average price target of $74.80.
• The company’s latest quarterly results fell short of expectations, with EPS of $0.90 versus the $1.18 consensus and revenue of $16.76 billion versus $17.56 billion expected, although revenue increased 5.2% year over year.

ArcelorMittal (NYSE:MT - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $79.68 and last traded at $77.1370, with a volume of 1131859 shares traded. The stock had previously closed at $78.74.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Wells Fargo & Company raised their target price on shares of ArcelorMittal from $62.00 to $69.00 and gave the company an "equal weight" rating in a report on Friday, July 31st. Morgan Stanley assumed coverage on shares of ArcelorMittal in a report on Monday, August 24th. They issued an "overweight" rating and a $82.00 price objective on the stock. JPMorgan Chase & Co. raised shares of ArcelorMittal from an "underweight" rating to a "neutral" rating in a research report on Friday, July 10th. Citigroup reiterated a "buy" rating on shares of ArcelorMittal in a research note on Tuesday, August 4th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of ArcelorMittal in a report on Friday. Five analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, ArcelorMittal has a consensus rating of "Hold" and an average target price of $74.80.

ArcelorMittal Price Performance

The stock has a market capitalization of $59.78 billion, a price-to-earnings ratio of 32.69, a P/E/G ratio of 0.59 and a beta of 1.55. The company has a quick ratio of 0.57, a current ratio of 1.43 and a debt-to-equity ratio of 0.21. The stock has a fifty day moving average of $70.30 and a 200-day moving average of $64.14.

ArcelorMittal (NYSE:MT - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.90 earnings per share for the quarter, missing the consensus estimate of $1.18 by ($0.28). ArcelorMittal had a return on equity of 4.20% and a net margin of 2.88%.The company had revenue of $16.76 billion for the quarter, compared to analysts' expectations of $17.56 billion. During the same quarter in the prior year, the firm posted $1.32 EPS. The firm's quarterly revenue was up 5.2% compared to the same quarter last year. On average, equities research analysts predict that ArcelorMittal will post 4.48 EPS for the current fiscal year.

Institutional Investors Weigh In On ArcelorMittal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. First Trust Advisors LP lifted its holdings in shares of ArcelorMittal by 275.8% in the 1st quarter. First Trust Advisors LP now owns 55,311 shares of the basic materials company's stock valued at $2,875,000 after purchasing an additional 40,593 shares during the last quarter. Maple Rock Capital Partners Inc. grew its stake in ArcelorMittal by 54.9% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 2,190,860 shares of the basic materials company's stock worth $131,934,000 after buying an additional 776,595 shares during the last quarter. Icon Advisers Inc. Co. increased its position in ArcelorMittal by 140.7% during the first quarter. Icon Advisers Inc. Co. now owns 65,000 shares of the basic materials company's stock worth $3,379,000 after buying an additional 38,000 shares during the period. Quantinno Capital Management LP lifted its stake in ArcelorMittal by 11.7% in the first quarter. Quantinno Capital Management LP now owns 335,931 shares of the basic materials company's stock valued at $17,461,000 after buying an additional 35,298 shares during the last quarter. Finally, Impala Asset Management LLC purchased a new stake in ArcelorMittal in the fourth quarter valued at approximately $7,281,000. 9.29% of the stock is owned by hedge funds and other institutional investors.

About ArcelorMittal

ArcelorMittal SA is a global steel and mining company with operations spanning the Americas, Europe and Africa. The company produces and sells steel products for industries including automotive, construction, infrastructure, energy, packaging and general manufacturing.

Its portfolio includes flat steel, long steel, tubular products and tailored solutions designed for specific industrial applications. ArcelorMittal also operates iron ore mining and processing activities, which supply raw materials for its steelmaking operations and support its vertically integrated business model.

ArcelorMittal was formed in 2006 through the merger of Arcelor and Mittal Steel.

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