Sandvik (OTCMKTS:SDVKY) Shares Gap Down - Time to Sell?

Key Points

• Sandvik shares gapped down ahead of trading, opening at $35.01 after closing at $38.46 the prior session and last trading at $35.34.
• Analyst sentiment has turned cautious, with multiple firms cutting ratings to Hold and Goldman Sachs maintaining a Sell; the overall consensus rating is now Hold.
• The company recently beat quarterly EPS estimates, reporting $0.49 versus $0.46 expected, while its stock continues to trade below both its 50-day and 200-day moving averages.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $38.46, but opened at $35.01. Sandvik shares last traded at $35.34, with a volume of 4,983 shares.

Analyst Ratings Changes

Several brokerages have recently weighed in on SDVKY. Zacks Research cut Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. Citigroup lowered shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Kepler Capital Markets cut shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research note on Wednesday. The Goldman Sachs Group reaffirmed a "sell" rating on shares of Sandvik in a report on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Sandvik in a research note on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Sandvik currently has a consensus rating of "Hold".

Sandvik Price Performance

The business has a 50 day simple moving average of $40.26 and a two-hundred day simple moving average of $39.81. The firm has a market capitalization of $43.97 billion, a P/E ratio of 27.60, a price-to-earnings-growth ratio of 1.14 and a beta of 1.50. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.96.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last issued its quarterly earnings results on Friday, July 17th. The industrial products company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.03. Sandvik had a return on equity of 16.92% and a net margin of 12.16%. On average, sell-side analysts expect that Sandvik AB will post 1.71 EPS for the current fiscal year.

Hedge Funds Weigh In On Sandvik

An institutional investor recently raised its position in Sandvik stock. GAMMA Investing LLC raised its stake in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 6.2% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 10,489 shares of the industrial products company's stock after buying an additional 616 shares during the period. GAMMA Investing LLC's holdings in Sandvik were worth $432,000 at the end of the most recent quarter. 0.74% of the stock is owned by institutional investors.

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.

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