POSCO (NYSE:PKX) Shares Gap Up - Here's Why

Key Points

• POSCO shares jumped 5.2%, opening at $58.82 versus a prior close of $54.97, before trading at approximately $57.70.
• Analyst sentiment is mixed: Zacks Research and Weiss Ratings downgraded the stock, while Wall Street Zen upgraded it. POSCO has an overall average rating of “Hold.”
• POSCO’s latest quarterly results exceeded expectations, with earnings per share of $1.30 versus the $0.85 consensus estimate and revenue of $12.43 billion versus estimates of $11.96 billion.

Shares of POSCO (NYSE:PKX - Get Free Report) gapped up prior to trading on Monday. The stock had previously closed at $54.97, but opened at $58.82. POSCO shares last traded at $57.6960, with a volume of 30,135 shares traded.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on PKX. Zacks Research downgraded POSCO from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. Weiss Ratings lowered POSCO from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 9th. Finally, Wall Street Zen upgraded POSCO from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, POSCO currently has an average rating of "Hold".

POSCO Stock Up 5.2%

The firm has a fifty day simple moving average of $58.61 and a 200 day simple moving average of $61.51. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.37 and a current ratio of 1.98. The company has a market cap of $17.49 billion, a PE ratio of 21.89 and a beta of 1.64.

POSCO (NYSE:PKX - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The basic materials company reported $1.30 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.45. POSCO had a net margin of 1.79% and a return on equity of 1.99%. The business had revenue of $12.43 billion for the quarter, compared to analyst estimates of $11.96 billion. Equities research analysts predict that POSCO will post 4.91 EPS for the current year.

Hedge Funds Weigh In On POSCO

A number of large investors have recently bought and sold shares of the stock. Mather Group LLC. grew its stake in shares of POSCO by 3,766.7% during the 3rd quarter. Mather Group LLC. now owns 1,392 shares of the basic materials company's stock valued at $79,000 after buying an additional 1,356 shares during the period. Keybank National Association OH acquired a new stake in shares of POSCO during the 1st quarter worth $200,000. QRG Capital Management Inc. purchased a new position in shares of POSCO in the 1st quarter worth $219,000. Allspring Global Investments Holdings LLC purchased a new position in shares of POSCO in the 1st quarter worth $222,000. Finally, MW Advisory LLC acquired a new position in POSCO in the second quarter valued at $214,000.

POSCO Company Profile

POSCO is a South Korean steel producer and one of the world's major integrated steelmakers. The company manufactures a broad range of steel products, including hot- and cold-rolled steel, heavy plate, wire rod, stainless steel, galvanized steel, automotive steel and electrical steel.

POSCO operates large integrated steelworks in Pohang and Gwangyang, South Korea. Its products are used in automobiles, shipbuilding, construction, energy infrastructure, appliances and other industrial applications.

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