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

Key Points

• National Steel shares fell sharply, opening at $1.02 versus a prior close of $1.18 and later trading near $0.9630, down 19.1%.
• Analyst sentiment is strongly negative: Zacks Research downgraded the stock to “strong sell,” while Wall Street Zen and Weiss Ratings also issued sell ratings. The average analyst target is $1.40.
• The company reported a quarterly loss of $0.12 per share, in line with estimates, while revenue of $2.18 billion exceeded expectations; analysts project a full-year loss of $0.20 per share.

National Steel Company (NYSE:SID - Get Free Report)'s stock price gapped down before the market opened on Monday. The stock had previously closed at $1.18, but opened at $1.02. National Steel shares last traded at $0.9630, with a volume of 5,973,170 shares.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on SID shares. Zacks Research cut shares of National Steel from a "hold" rating to a "strong sell" rating in a report on Thursday, August 13th. Wall Street Zen cut National Steel from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of National Steel in a research report on Monday, September 14th. Three analysts have rated the stock with a Sell rating. According to MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average target price of $1.40.

National Steel Stock Down 19.1%

The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of -2.77 and a beta of 1.55. The company has a quick ratio of 0.79, a current ratio of 1.15 and a debt-to-equity ratio of 2.96. The firm has a 50-day moving average of $1.14 and a two-hundred day moving average of $1.15.

National Steel (NYSE:SID - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The basic materials company reported ($0.12) EPS for the quarter, hitting analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $2.13 billion. As a group, sell-side analysts anticipate that National Steel Company will post -0.20 earnings per share for the current 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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