ArcelorMittal (NYSE:MT) Shares Gap Up - Time to Buy?

Key Points

• ArcelorMittal shares jumped 4.9%, opening at $64.28 versus a prior close of $61.30. The stock recently traded around $64.23.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $74.55; Morgan Stanley set the highest cited target at $82.
• The company’s latest quarterly results fell short of expectations, reporting $0.90 EPS versus $1.18 forecast and revenue of $16.76 billion versus $17.56 billion expected, despite 5.2% year-over-year revenue growth.

Shares of ArcelorMittal (NYSE:MT - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $61.30, but opened at $64.28. ArcelorMittal shares last traded at $64.2340, with a volume of 325,139 shares traded.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MT. Morgan Stanley started coverage on ArcelorMittal in a report on Monday, August 24th. They issued an "overweight" rating and a $82.00 price objective on the stock. UBS Group raised ArcelorMittal from a "neutral" rating to a "buy" rating in a research report on Friday. Citigroup reiterated a "buy" rating on shares of ArcelorMittal in a research note on Tuesday, August 4th. Wells Fargo & Company lowered their price objective on shares of ArcelorMittal from $69.00 to $64.00 and set an "equal weight" rating for the company in a research note on Tuesday. Finally, JPMorgan Chase & Co. upgraded shares of ArcelorMittal from an "underweight" rating to a "neutral" rating in a report on Friday, July 10th. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $74.55.

ArcelorMittal Trading Up 4.9%

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.43 and a quick ratio of 0.57. The business's 50 day simple moving average is $72.30 and its 200 day simple moving average is $65.94. The company has a market capitalization of $49.84 billion, a price-to-earnings ratio of 27.21, a price-to-earnings-growth ratio of 0.52 and a beta of 1.54.

ArcelorMittal (NYSE:MT - Get Free Report) last issued its earnings results on Thursday, July 30th. The basic materials company reported $0.90 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.18 by ($0.28). ArcelorMittal had a return on equity of 4.20% and a net margin of 2.88%.The business had revenue of $16.76 billion for the quarter, compared to analysts' expectations of $17.56 billion. During the same period last year, the company posted $1.32 earnings per share. The business's quarterly revenue was up 5.2% on a year-over-year basis. Research analysts anticipate that ArcelorMittal will post 4.06 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP lifted its stake in shares of ArcelorMittal by 0.4% during the first quarter. Dimensional Fund Advisors LP now owns 3,232,495 shares of the basic materials company's stock valued at $168,008,000 after buying an additional 11,503 shares during the period. Maple Rock Capital Partners Inc. boosted its holdings in shares of ArcelorMittal by 54.9% during the second quarter. Maple Rock Capital Partners Inc. now owns 2,190,860 shares of the basic materials company's stock worth $131,934,000 after purchasing an additional 776,595 shares during the last quarter. Senator Investment Group LP purchased a new stake in shares of ArcelorMittal in the fourth quarter valued at $26,431,000. Quantinno Capital Management LP grew its position in shares of 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 purchasing an additional 35,298 shares during the period. Finally, Capital Wealth Planning LLC increased its stake in ArcelorMittal by 156.3% in the fourth quarter. Capital Wealth Planning LLC now owns 235,750 shares of the basic materials company's stock valued at $11,127,000 after purchasing an additional 143,758 shares during the last quarter. 9.29% of the stock is owned by hedge funds and other institutional investors.

ArcelorMittal Company Profile

ArcelorMittal is a global steel and mining company headquartered in Luxembourg. The company produces a broad range of steel products, including flat steel, long steel, tubular products and specialty grades used in automotive manufacturing, construction, appliances, energy, packaging and other industrial applications.

Its operations span major steel-producing and consuming regions, including Europe, North and South America, and Africa. In addition to steelmaking and processing, ArcelorMittal owns and operates mining assets that supply iron ore for its production activities.

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