Salzgitter (OTCMKTS:SZGPY) Shares Gap Down - Here's What Happened

Key Points

• Salzgitter AG shares gapped down from a previous close of $2.53 to open at $2.40, reflecting a cautious market sentiment.
• The company received multiple downgrades from analysts, including a cut from "strong-buy" to "hold" by DZ Bank and an "underperform" rating from Oddo Bhf.
• Salzgitter announced a dividend yielding 52.0%, but has a negative dividend payout ratio of -1.23%, indicating financial strain.

Salzgitter AG (OTCMKTS:SZGPY - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $2.53, but opened at $2.40. Salzgitter shares last traded at $2.40, with a volume of 220 shares changing hands.

Analysts Set New Price Targets

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

Salzgitter Stock Down 9.2%

The firm has a fifty day moving average price of $2.51 and a 200 day moving average price of $2.37. The company has a market cap of $1.39 billion, a P/E ratio of -3.17 and a beta of 1.41.

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

Salzgitter Cuts Dividend

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