Ryerson (NYSE:RYI) Shares Gap Down on Disappointing 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.

Shares of Ryerson Holding Corporation (NYSE:RYI - Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. 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.

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

Ryerson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, September 4th will be paid a dividend of $0.1875 per share. 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%.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Ryerson

Institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. grew its holdings in shares of Ryerson by 11.0% in the 4th quarter. JPMorgan Chase & Co. now owns 179,422 shares of the basic materials company's stock worth $3,321,000 after acquiring an additional 17,771 shares during the period. Wells Fargo & Company MN lifted its stake in Ryerson by 19.5% in the 4th quarter. Wells Fargo & Company MN now owns 16,821 shares of the basic materials company's stock valued at $311,000 after buying an additional 2,749 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in Ryerson by 6.0% during the 4th quarter. Russell Investments Group Ltd. now owns 122,371 shares of the basic materials company's stock valued at $2,265,000 after buying an additional 6,959 shares during the last quarter. Barclays PLC grew its holdings in Ryerson by 3.5% during the 4th quarter. Barclays PLC now owns 57,280 shares of the basic materials company's stock valued at $1,061,000 after buying an additional 1,950 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in Ryerson by 488.2% during 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 buying an additional 3,061 shares during the last quarter. Institutional investors and hedge funds own 94.81% of the company's stock.

Ryerson Trading Up 0.0%

The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.00 and a current ratio of 2.03. The business has a fifty day simple moving average of $21.92 and a 200 day simple moving average of $22.31. The stock has a market cap of $663.64 million, a price-to-earnings ratio of -45.80 and a beta of 1.56.

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.