Sandvik (OTCMKTS:SDVKY) Shares Gap Up - Still a Buy?

Key Points

• Sandvik shares jumped 2.5%, opening at $40.32 versus the prior close of $38.50 and last trading at $40.42.
• Analyst sentiment is mixed but leans cautious: MarketBeat reports an average “Hold” rating, based on one Strong Buy, three Buys, eight Holds, and one Sell.
• Sandvik has a $51.19 billion market capitalization, a 28.14 price-to-earnings ratio, and only 0.74% institutional and hedge-fund ownership; GAMMA Investing recently increased its stake by 6.2%.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $38.50, but opened at $40.32. Sandvik shares last traded at $40.42, with a volume of 1,982 shares.

Analyst Upgrades and Downgrades

SDVKY has been the topic of a number of research reports. Berenberg Bank upgraded Sandvik to a "hold" rating in a research note on Thursday, August 27th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Sandvik in a report on Thursday, June 18th. Kepler Capital Markets downgraded Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 15th. Finally, Zacks Research downgraded shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold".

Sandvik Stock Up 2.5%

The firm has a market capitalization of $51.19 billion, a price-to-earnings ratio of 28.14, a price-to-earnings-growth ratio of 1.10 and a beta of 1.52. The company has a current ratio of 1.64, a quick ratio of 0.84 and a debt-to-equity ratio of 0.31. The firm has a 50 day moving average price of $38.72 and a two-hundred day moving average price of $39.99.

Hedge Funds Weigh In On Sandvik

A hedge fund recently raised its position in Sandvik stock. GAMMA Investing LLC increased its position in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 6.2% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,489 shares of the industrial products company's stock after purchasing an additional 616 shares during the quarter. GAMMA Investing LLC's holdings in Sandvik were worth $432,000 as of its most recent filing with the Securities and Exchange Commission. 0.74% of the stock is owned by institutional investors and hedge funds.

Sandvik Company Profile

Sandvik OTCMKTS: SDVKY is a global engineering group headquartered in Sandviken, Sweden, with roots dating back to 1862 when it was founded by Göran Fredrik Göransson. The company designs, manufactures and services advanced products and solutions for the mining and construction industries, metalworking and material technology markets. Sandvik serves customers worldwide with a broad portfolio of industrial products, equipment and aftermarket services.

Sandvik's core activities span three broad areas: metal-cutting and machining solutions, mining and rock excavation equipment, and specialty materials and components.

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