Sandvik AB (OTCMKTS:SDVKY) Sees Large Increase in Short Interest

Key Points

• Short interest in Sandvik AB surged in June, rising 195.2% to 4,581 shares as of June 30. Even so, the short position remains very small relative to trading volume.
• Analyst sentiment is mixed but leans cautious, with the stock carrying a consensus “Hold” rating after several recent downgrades from firms including Zacks Research and Citigroup.
• Sandvik’s recent results were solid, as the company beat EPS estimates in its latest quarter, though revenue came in below expectations. The stock was trading near $40, with a market cap of about $50.16 billion.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report) was the recipient of a large increase in short interest during the month of June. As of June 30th, there was short interest totaling 4,581 shares, an increase of 195.2% from the June 15th total of 1,552 shares. Approximately 0.0% of the shares of the company are sold short. Based on an average trading volume of 532,202 shares, the short-interest ratio is presently 0.0 days.

Wall Street Analyst Weigh In

SDVKY has been the subject of a number of research reports. Zacks Research downgraded shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. The Goldman Sachs Group restated a "sell" rating on shares of Sandvik in a research report on Thursday, April 9th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Sandvik in a report on Thursday, June 18th. Citigroup downgraded Sandvik from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Finally, Nordea Equity Research raised shares of Sandvik to a "hold" rating in a research report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Hedge Funds Weigh In On Sandvik

An institutional investor recently raised its stake in Sandvik stock. GAMMA Investing LLC grew its position in shares of Sandvik AB (OTCMKTS:SDVKY - Free Report) by 17.5% during the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 8,704 shares of the industrial products company's stock after purchasing an additional 1,298 shares during the quarter. GAMMA Investing LLC's holdings in Sandvik were worth $281,000 as of its most recent filing with the SEC. 0.74% of the stock is owned by institutional investors.

Sandvik Stock Performance

Shares of OTCMKTS SDVKY traded down $0.57 during midday trading on Monday, hitting $39.99. 34,691 shares of the company's stock were exchanged, compared to its average volume of 132,116. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.96 and a quick ratio of 1.06. The stock's 50 day moving average price is $40.46 and its 200-day moving average price is $39.61. The firm has a market cap of $50.16 billion, a P/E ratio of 31.49, a PEG ratio of 1.16 and a beta of 1.50. Sandvik has a twelve month low of $23.50 and a twelve month high of $44.53.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The industrial products company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.32 by $0.04. The firm had revenue of $3.34 billion for the quarter, compared to analysts' expectations of $3.43 billion. Sandvik had a return on equity of 16.92% and a net margin of 12.16%. Equities research analysts anticipate that Sandvik will post 1.71 EPS for the current year.

About Sandvik

Sandvik OTCMKTS: SDVKY is a global engineering group headquartered in Sandviken, Sweden, with roots dating back to 1862 when it was founded by Göran Fredrik Göransson. The company designs, manufactures and services advanced products and solutions for the mining and construction industries, metalworking and material technology markets. Sandvik serves customers worldwide with a broad portfolio of industrial products, equipment and aftermarket services.

Sandvik's core activities span three broad areas: metal-cutting and machining solutions, mining and rock excavation equipment, and specialty materials and components.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.