National Steel (NYSE:SID) Stock Price Up 6% - Still a Buy?

Key Points

• National Steel shares rose 6% to approximately $1.315, with trading volume slightly above average.
• Analysts remain strongly bearish: three firms rate the stock “Sell” or “Strong Sell,” while the consensus price target is $1.40.
• The company reported quarterly revenue of $2.18 billion, above expectations, but remained unprofitable with negative net margins and return on equity; its high debt-to-equity ratio of 2.96 adds financial risk.

National Steel Company (NYSE:SID - Get Free Report)'s stock price traded up 6% during mid-day trading on Wednesday . The stock traded as high as $1.32 and last traded at $1.3150. 4,876,547 shares changed hands during mid-day trading, an increase of 6% from the average daily volume of 4,586,157 shares. The stock had previously closed at $1.24.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SID. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of National Steel in a report on Wednesday, June 17th. Wall Street Zen downgraded National Steel from a "hold" rating to a "sell" rating in a research report on Saturday, August 22nd. Finally, Zacks Research lowered National Steel from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 13th. Three equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat, National Steel presently has a consensus rating of "Strong Sell" and a consensus price target of $1.40.

National Steel Stock Up 4.4%

The stock has a market cap of $1.72 billion, a price-to-earnings ratio of -3.81 and a beta of 1.61. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.79 and a current ratio of 1.15. The firm's 50-day simple moving average is $1.00 and its two-hundred day simple moving average is $1.19.

National Steel (NYSE:SID - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The basic materials company reported ($0.12) EPS for the quarter, meeting the consensus estimate of ($0.12). National Steel had a negative net margin of 5.26% and a negative return on equity of 14.90%. The business had revenue of $2.18 billion for the quarter, compared to analysts' expectations of $2.13 billion. On average, sell-side analysts expect that National Steel Company will post 0.11 EPS for the current fiscal year.

Hedge Funds Weigh In On National Steel

A hedge fund recently raised its stake in National Steel stock. HRT Financial LP increased its position in National Steel Company (NYSE:SID - Free Report) by 175.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 564,262 shares of the basic materials company's stock after purchasing an additional 359,335 shares during the quarter. HRT Financial LP's holdings in National Steel were worth $902,000 as of its most recent SEC filing.

About National Steel

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products.

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