Ryerson (NYSE:RYI) Shares Gap Down Following Weak Earnings

Key Points

• Ryerson Holding Corporation's shares gapped down to $20.14 after reporting weaker than expected quarterly earnings, with an EPS of $0.08 compared to the consensus estimate of $0.17.
• The company recently announced a quarterly dividend of $0.1875, set to be paid on September 18th, which represents an annualized yield of 3.74% despite a negative payout ratio.
• Analyst ratings for Ryerson were downgraded from a "buy" to a "hold" by Wall Street Zen, reflecting concerns about the company's financial performance after earnings missed expectations.

Ryerson Holding Corporation (NYSE:RYI - Get Free Report)'s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $21.80, but opened at $20.14. Ryerson shares last traded at $20.21, with a volume of 50,021 shares trading hands.

The basic materials company reported $0.08 earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by ($0.09). Ryerson had a negative return on equity of 1.72% and a negative net margin of 0.33%. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion.

Ryerson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, September 4th will be given a $0.1875 dividend. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $0.75 annualized dividend and a yield of 3.6%. Ryerson's dividend payout ratio (DPR) is -166.67%.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen lowered Ryerson from a "buy" rating to a "hold" rating in a report on Friday, May 9th.

Institutional Trading of Ryerson

A number of institutional investors and hedge funds have recently modified their holdings of the company. CWM LLC grew its holdings in shares of Ryerson by 97.7% during the second quarter. CWM LLC now owns 1,866 shares of the basic materials company's stock worth $40,000 after purchasing an additional 922 shares during the last quarter. Tower Research Capital LLC TRC raised its holdings in Ryerson by 488.2% in the 4th quarter. Tower Research Capital LLC TRC now owns 3,688 shares of the basic materials company's stock valued at $68,000 after acquiring an additional 3,061 shares in the last quarter. Harbor Capital Advisors Inc. raised its holdings in shares of Ryerson by 12.9% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 10,199 shares of the basic materials company's stock worth $220,000 after buying an additional 1,164 shares in the last quarter. Brevan Howard Capital Management LP bought a new stake in Ryerson during the 4th quarter worth $196,000. Finally, SG Americas Securities LLC bought a new stake in shares of Ryerson in the 1st quarter valued at about $286,000. 94.81% of the stock is currently owned by institutional investors.

Ryerson Price Performance

The business has a 50 day moving average price of $21.92 and a 200-day moving average price of $22.28. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.99 and a current ratio of 2.03. The company has a market capitalization of $671.50 million, a price-to-earnings ratio of -46.28 and a beta of 1.54.

Ryerson Company Profile

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States and internationally. It offers a line of products in carbon steel, stainless steel, alloy steels, and aluminum, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing.