Ferroglobe (NASDAQ:GSM) Hits New 1-Year Low - Here's Why

Key Points

• Ferroglobe shares hit a new 52-week low, trading as low as $2.82 and down 10.3% during the session.
• The company reported a quarterly loss of $0.06 per share, worse than analysts’ $0.04 loss estimate, while revenue of $369.76 million also missed expectations.
• Analyst views are mixed, with a consensus Hold rating and a $6.00 price target; recent ratings range from Buy to Sell.

Ferroglobe PLC (NASDAQ:GSM - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday. The stock traded as low as $2.82 and last traded at $2.7950, with a volume of 326,852 shares. The stock had previously closed at $2.93.

Wall Street Analyst Weigh In

GSM has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ferroglobe in a research report on Monday. Wall Street Zen upgraded shares of Ferroglobe from a "hold" rating to a "buy" rating in a research note on Saturday, October 10th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Ferroglobe currently has a consensus rating of "Hold" and a consensus price target of $6.00.

Ferroglobe Trading Down 10.3%

The stock has a market cap of $490.28 million, a P/E ratio of 16.42 and a beta of 1.21. The stock's 50-day moving average is $4.13 and its two-hundred day moving average is $4.21. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.29 and a quick ratio of 0.74.

Ferroglobe (NASDAQ:GSM - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The basic materials company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.02). The firm had revenue of $369.76 million for the quarter, compared to the consensus estimate of $382.80 million. Ferroglobe had a net margin of 2.13% and a negative return on equity of 5.31%. Equities research analysts anticipate that Ferroglobe PLC will post -0.05 EPS for the current year.

Ferroglobe Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 30th. Investors of record on Tuesday, December 22nd will be paid a $0.0150 dividend. The ex-dividend date of this dividend is Tuesday, December 22nd. This represents a $0.06 dividend on an annualized basis and a yield of 2.3%. Ferroglobe's payout ratio is -27.27%.

Insiders Place Their Bets

In other news, insider Cos Muntanola Beatriz Garcia sold 32,292 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $4.30, for a total transaction of $138,855.60. Following the transaction, the insider directly owned 31,693 shares of the company's stock, valued at approximately $136,279.90. This represents a 50.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 13.07% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ferroglobe

A number of large investors have recently modified their holdings of GSM. Bastion Asset Management Inc. acquired a new stake in shares of Ferroglobe during the first quarter worth $4,155,000. Donald Smith & CO. Inc. acquired a new position in shares of Ferroglobe in the second quarter valued at about $25,843,000. Sei Investments Co. increased its holdings in shares of Ferroglobe by 67.0% in the first quarter. Sei Investments Co. now owns 639,440 shares of the basic materials company's stock valued at $2,634,000 after purchasing an additional 256,449 shares during the period. SummerHaven Investment Management LLC purchased a new position in shares of Ferroglobe in the third quarter worth about $530,000. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Ferroglobe in the second quarter worth about $544,000. Hedge funds and other institutional investors own 89.64% of the company's stock.

Ferroglobe Company Profile

Ferroglobe PLC NASDAQ: GSM is a global producer of silicon and manganese-based alloys. The company manufactures silicon metal, ferrosilicon, manganese alloys, calcium silicon and other specialty alloy products used in the production of steel, aluminum, silicones, solar materials and other industrial goods.

Ferroglobe also operates quartz resources and produces related raw materials used in its alloy manufacturing processes. Its products support several industries, including automotive, construction, energy, chemicals, electronics and renewable energy.

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