National Steel (NYSE:SID) Shares Down 5.4% - Here's Why

Key Points

• National Steel shares fell 5.4% to approximately $0.86, with trading volume 26% above the stock’s average daily volume.
• Analyst sentiment is strongly negative: three analysts rate the stock “Sell,” producing a consensus rating of “Strong Sell”, despite a $1.40 consensus price target.
• The company reported a quarterly loss of $0.12 per share, negative net margins and return on equity, while carrying a high debt-to-equity ratio of 2.96.

National Steel Company (NYSE:SID - Get Free Report) shares fell 5.4% on Tuesday. The company traded as low as $0.8606 and last traded at $0.8630. Approximately 7,007,512 shares were traded during mid-day trading, an increase of 26% from the average daily volume of 5,578,422 shares. The stock had previously closed at $0.9118.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on SID shares. Weiss Ratings restated a "sell (d-)" rating on shares of National Steel in a research note on Monday, September 14th. Zacks Research cut National Steel from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 13th. Finally, Wall Street Zen downgraded National Steel from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. Three equities research analysts have rated the stock with a Sell rating. Based on data from MarketBeat.com, the stock has a consensus rating of "Strong Sell" and a consensus price target of $1.40.

National Steel Stock Down 5.1%

The firm has a market cap of $1.15 billion, a price-to-earnings ratio of -2.54 and a beta of 1.55. The firm's 50 day moving average price is $1.13 and its two-hundred day moving average price is $1.29. The company has a debt-to-equity ratio of 2.96, a current ratio of 1.15 and a quick ratio of 0.79.

National Steel (NYSE:SID - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The basic materials company reported ($0.12) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.12). National Steel had a negative return on equity of 14.90% and a negative net margin of 5.26%. The firm had revenue of $2.18 billion for the quarter, compared to analysts' expectations of $2.13 billion. As a group, sell-side analysts forecast that National Steel Company will post -0.20 earnings per share for the current fiscal year.

National Steel Company Profile

Companhia Siderúrgica Nacional NYSE: SID, commonly known as CSN, is a Brazilian industrial company engaged primarily in steel production. Its operations include the manufacture and sale of flat steel products, such as galvanized, tinplate and coated steel, as well as other products used in construction, automotive manufacturing, appliances and industrial applications.

Founded in 1941, CSN operates an integrated steelmaking complex in Volta Redonda, in the state of Rio de Janeiro. The company also has interests in iron ore mining, cement production, logistics and energy, supporting its vertically integrated industrial model.

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