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 trading hands.

Analyst Ratings Changes

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

Salzgitter Price Performance

The stock has a market capitalization of $1.30 billion, a price-to-earnings ratio of -2.96 and a beta of 1.41. The business has a 50 day simple moving average of $2.50 and a 200-day simple moving average of $2.35.

Salzgitter (OTCMKTS:SZGPY - Get Free Report) last posted its earnings results on Monday, May 12th. The basic materials company reported ($0.07) earnings per share (EPS) for the quarter. The business 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%. As a group, equities analysts predict that Salzgitter AG will post -0.68 earnings per share for the current year.

Salzgitter Cuts Dividend

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

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