Worthington Steel (NYSE:WS) Shares Gap Down - Here's Why

Key Points

• Worthington Steel shares fell sharply, opening at $33.71 versus the prior close of $34.93 and last trading near $33.51. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, but the consensus rating remains “Buy” with an average price target of $46.00. The company’s latest quarterly results narrowly exceeded EPS estimates, though revenue missed expectations.
• Worthington Steel declared a quarterly dividend of $0.16 per share, equivalent to a $0.64 annualized payout and a 1.9% yield. Insiders sold more than 22,600 shares worth about $987,000 during the last quarter.

Worthington Steel, Inc. (NYSE:WS - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $34.93, but opened at $33.71. Worthington Steel shares last traded at $33.5050, with a volume of 3,287 shares traded.

Wall Street Analysts Forecast Growth

WS has been the subject of a number of research reports. Wall Street Zen downgraded Worthington Steel from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Zacks Research upgraded Worthington Steel from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 21st. KeyCorp reissued an "overweight" rating on shares of Worthington Steel in a report on Monday, June 29th. Finally, Weiss Ratings downgraded Worthington Steel from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $46.00.

Worthington Steel Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.92 and a current ratio of 1.46. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 24.29 and a beta of 2.30. The business's 50 day simple moving average is $36.12 and its 200-day simple moving average is $37.72.

Worthington Steel (NYSE:WS - Get Free Report) last released its quarterly earnings results on Thursday, June 25th. The company reported $0.74 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.01. The company had revenue of $929.20 million for the quarter, compared to analysts' expectations of $992.00 million. Worthington Steel had a return on equity of 8.87% and a net margin of 0.50%.The business's revenue for the quarter was up 11.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 earnings per share. Research analysts anticipate that Worthington Steel, Inc. will post 3.39 earnings per share for the current year.

Worthington Steel Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.16 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.64 annualized dividend and a yield of 1.9%. Worthington Steel's payout ratio is presently 46.04%.

Insiders Place Their Bets

In other Worthington Steel news, CFO Timothy A. Adams sold 2,367 shares of the business's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $42.27, for a total transaction of $100,053.09. Following the completion of the transaction, the chief financial officer owned 44,098 shares in the company, valued at approximately $1,864,022.46. The trade was a 5.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Jeffrey R. Klingler sold 20,036 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $43.82, for a total value of $877,977.52. Following the completion of the transaction, the chief operating officer directly owned 93,212 shares of the company's stock, valued at approximately $4,084,549.84. The trade was a 17.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,603 shares of company stock valued at $986,631 in the last quarter. 2.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WS. Rockefeller Capital Management L.P. grew its position in Worthington Steel by 1,239.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 750 shares of the company's stock worth $26,000 after purchasing an additional 694 shares in the last quarter. Hantz Financial Services Inc. raised its stake in shares of Worthington Steel by 56.4% during the 4th quarter. Hantz Financial Services Inc. now owns 910 shares of the company's stock worth $32,000 after purchasing an additional 328 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Worthington Steel during the 4th quarter valued at about $48,000. OP Asset Management Ltd acquired a new stake in shares of Worthington Steel during the 1st quarter valued at about $49,000. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Worthington Steel in the 2nd quarter valued at approximately $51,000. 45.41% of the stock is owned by institutional investors and hedge funds.

Worthington Steel Company Profile

Worthington Steel NYSE: WS is a leading North American steel processor specializing in the production of flat-rolled, coated and painted sheet and coil products. Operating as a wholly owned subsidiary of Worthington Industries, the company serves a broad range of industries, including construction, automotive, appliance, energy and agricultural equipment. Its core business activities encompass the processing, finishing and distribution of carbon and advanced high-strength steels, aluminum and stainless products to manufacturers across the continent.

The company’s product portfolio includes hot-dip galvanizing, galvannealed, aluminized and pre-painted steel products, as well as cold-rolled and hot-rolled coil.

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