Salzgitter (OTCMKTS:SZGPY) Shares Down 9.5% - What's Next?

Key Points

• Salzgitter AG shares dropped by 9.5% to $2.38, with trading volume significantly down by 91% compared to the average session.
• Analysts have recently downgraded Salzgitter, with a new "underperform" rating from Oddo Bhf and a downgrade from "strong-buy" to "hold" by DZ Bank.
• The company announced a dividend yield of 52.0%, but has a negative dividend payout ratio of -1.23%, raising concerns about its financial health.

Salzgitter AG (OTCMKTS:SZGPY - Get Free Report)'s share price fell 9.5% during trading on Tuesday . The stock traded as low as $2.38 and last traded at $2.38. 358 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 4,128 shares. The stock had previously closed at $2.63.

Wall Street Analyst Weigh In

Several brokerages have commented on SZGPY. Oddo Bhf downgraded Salzgitter to an "underperform" rating in a research report on Tuesday, April 15th. DZ Bank downgraded Salzgitter from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 17th.

Salzgitter Stock Performance

The firm has a market capitalization of $1.44 billion, a PE ratio of -3.28 and a beta of 1.41. The company has a fifty day simple moving average of $2.51 and a two-hundred day simple moving average of $2.38.

Salzgitter (OTCMKTS:SZGPY - Get Free Report) last issued its earnings results on Monday, May 12th. The basic materials company reported ($0.07) earnings per share for the quarter. Salzgitter had a negative return on equity of 8.78% and a negative net margin of 4.16%. The firm had revenue of $2.45 billion during the quarter. On average, equities analysts anticipate that Salzgitter AG will post -0.68 earnings per share for the current fiscal year.

Salzgitter Cuts Dividend

The company also recently announced a dividend, which was paid on Wednesday, June 11th. Shareholders of record on Monday, May 26th were issued a $0.0117 dividend. This represents a dividend yield of 52.0%. The ex-dividend date was Friday, May 23rd. Salzgitter's dividend payout ratio is currently -1.23%.

About Salzgitter

Salzgitter AG, together with its subsidiaries, engages in steel and technology businesses worldwide. It operates through four segments: Steel Production, Steel Processing, Trading, and Technology. The Steel Production segment manufactures steel and special steels, such as hot-rolled wide strip, steel sheet, sections, tailored blanks, as well as scrap trading.