Sandvik (OTCMKTS:SDVKY) Shares Gap Up - Time to Buy?

Key Points

• Sandvik shares gapped up before trading, opening at $35.85 versus the prior close of $34.29 and last trading at $35.99.
• Analyst sentiment is mixed, with several recent downgrades leaving Sandvik with a consensus rating of Hold despite one Buy and one Strong Buy rating.
• The company recently beat EPS expectations for Q1, reporting $0.36 per share versus $0.32 expected, though revenue came in slightly below forecasts.

Sandvik AB (OTCMKTS:SDVKY - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $34.29, but opened at $35.85. Sandvik shares last traded at $35.99, with a volume of 1,637 shares trading hands.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Nordea Equity Research raised Sandvik to a "hold" rating in a research report on Wednesday, April 15th. Kepler Capital Markets lowered shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Sandvik in a research report on Thursday, June 18th. Citigroup downgraded shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, Zacks Research lowered shares of Sandvik from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold".

Sandvik Price Performance

The company has a fifty day moving average of $39.98 and a 200-day moving average of $39.86. The company has a current ratio of 1.96, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The stock has a market cap of $45.11 billion, a PE ratio of 24.80, a P/E/G ratio of 0.98 and a beta of 1.50.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The industrial products company reported $0.36 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.04. The company had revenue of $3.34 billion during the quarter, compared to analysts' expectations of $3.43 billion. Sandvik had a return on equity of 18.78% and a net margin of 13.05%. Sell-side analysts expect that Sandvik AB will post 1.71 EPS for the current fiscal year.

Institutional Investors Weigh In On Sandvik

An institutional investor recently raised its position in Sandvik stock. GAMMA Investing LLC grew its holdings in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 6.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 10,489 shares of the industrial products company's stock after acquiring an additional 616 shares during the period. GAMMA Investing LLC's holdings in Sandvik were worth $432,000 as of its most recent filing with the Securities & Exchange Commission. 0.74% of the stock is owned by institutional investors and hedge funds.

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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