Sandvik (OTCMKTS:SDVKY) Shares Gap Down - Here's What Happened

Key Points

• Sandvik shares gapped down, opening at $37.96 after a $39.68 close and last trading around $38.81 on a volume of 11,957 shares.
• Analyst consensus is a Moderate Buy (1 Strong Buy, 4 Buy, 4 Hold), but the stock has seen recent downgrades from Jefferies and Morgan Stanley.
• Quarterly results showed a slight EPS miss ($0.36 vs. $0.37 expected) while revenue beat ($3.64B vs. $3.38B); the stock trades at a P/E of 32.11 with a market cap near $48.7 billion.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $39.68, but opened at $37.96. Sandvik shares last traded at $38.8060, with a volume of 11,957 shares.

Wall Street Analyst Weigh In

Several research firms have recently commented on SDVKY. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Sandvik in a report on Monday, December 8th. Citigroup reissued a "buy" rating on shares of Sandvik in a research note on Monday, January 12th. Jefferies Financial Group cut Sandvik from a "strong-buy" rating to a "hold" rating in a research note on Sunday, January 25th. Morgan Stanley cut Sandvik from an "overweight" rating to an "equal weight" rating in a research note on Thursday, March 12th. Finally, Barclays reissued an "overweight" rating on shares of Sandvik in a research note on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy".

Sandvik Stock Performance

The company has a 50-day simple moving average of $40.38 and a two-hundred day simple moving average of $34.30. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.02 and a current ratio of 1.94. The firm has a market capitalization of $48.73 billion, a P/E ratio of 32.11, a PEG ratio of 1.58 and a beta of 1.52.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last posted its quarterly earnings data on Tuesday, January 27th. The industrial products company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.01). The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.38 billion. Sandvik had a net margin of 12.16% and a return on equity of 16.94%. As a group, equities analysts forecast that Sandvik AB will post 1.27 EPS for the current year.

Institutional Trading of Sandvik

A hedge fund recently raised its stake in Sandvik stock. GAMMA Investing LLC lifted its stake in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 24.8% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,406 shares of the industrial products company's stock after purchasing an additional 1,473 shares during the quarter. GAMMA Investing LLC's holdings in Sandvik were worth $208,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 0.74% of the company's stock.

Sandvik Company Profile

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.

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