Sandvik (OTCMKTS:SDVKY) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down: Sandvik opened at $40.17 after closing at $43.99 and last traded around $40.32 on light volume, reflecting a sharp intraday move lower.
• Analyst sentiment is mixed but leans positive: the consensus rating is "Moderate Buy" with 2 Strong Buy, 3 Buy, 5 Hold and 1 Sell from covering analysts.
• Quarterly results were mixed: Sandvik beat EPS estimates ($0.36 vs. $0.32) but missed revenue expectations ($3.34B vs. $3.43B), while key fundamentals include a $50.16B market cap, P/E of 31.49, ROE 17.64% and net margin 12.16%.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $43.99, but opened at $40.17. Sandvik shares last traded at $40.32, with a volume of 1,344 shares traded.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SDVKY. Barclays reiterated an "overweight" rating on shares of Sandvik in a report on Wednesday, February 25th. Morgan Stanley cut Sandvik from an "overweight" rating to an "equal weight" rating in a report on Thursday, March 12th. The Goldman Sachs Group reiterated a "sell" rating on shares of Sandvik in a report on Thursday, April 9th. Zacks Research upgraded Sandvik from a "hold" rating to a "strong-buy" rating in a report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Sandvik in a report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Sandvik presently has an average rating of "Moderate Buy".

Sandvik Price Performance

The stock has a market cap of $50.16 billion, a P/E ratio of 31.49, a PEG ratio of 1.50 and a beta of 1.53. The company has a 50 day simple moving average of $40.77 and a 200 day simple moving average of $36.43. The company has a current ratio of 1.94, a quick ratio of 1.02 and a debt-to-equity ratio of 0.34.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last released 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 17.64% and a net margin of 12.16%. Sell-side analysts forecast that Sandvik AB will post 1.76 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sandvik

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