Short Interest in Sandvik AB (OTCMKTS:SDVKY) Grows By 63.0%

Key Points

• Short interest surged 63.0% to 85,835 shares as of March 13, leaving a short-interest ratio of about 0.4 days based on average daily volume.
• Institutional activity: GAMMA Investing LLC increased its position by 17.5% to 8,704 shares (~$281,000), while hedge funds own only about 0.74% of the stock.
• Mixed fundamentals and analyst view: Sandvik slightly missed EPS by $0.01 but beat revenue estimates, the stock traded down roughly 3.6% near $36.57, and the consensus rating is a "Moderate Buy" (mix of Buy and Hold ratings).

Sandvik AB (OTCMKTS:SDVKY - Get Free Report) was the target of a large increase in short interest in March. As of March 13th, there was short interest totaling 85,835 shares, an increase of 63.0% from the February 26th total of 52,662 shares. Based on an average daily trading volume, of 242,156 shares, the short-interest ratio is currently 0.4 days. Approximately 0.0% of the company's stock are sold short.

Institutional Trading of Sandvik

A hedge fund recently raised its stake in Sandvik stock. GAMMA Investing LLC raised its position in Sandvik AB (OTCMKTS:SDVKY - Free Report) by 17.5% in the 4th quarter, according to its most recent filing with the SEC. The firm 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 at the end of the most recent reporting period. 0.74% of the stock is owned by hedge funds and other institutional investors.

Sandvik Trading Down 3.6%

Shares of Sandvik stock opened at $36.57 on Friday. 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 company has a market capitalization of $45.87 billion, a P/E ratio of 30.22, a PEG ratio of 1.62 and a beta of 1.48. Sandvik has a 1 year low of $16.94 and a 1 year high of $44.43. The company's fifty day moving average is $40.08 and its two-hundred day moving average is $33.65.

Sandvik (OTCMKTS:SDVKY - Get Free Report) last announced its earnings results on Tuesday, January 27th. The industrial products company reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.37 by ($0.01). Sandvik had a net margin of 12.16% and a return on equity of 16.94%. The business had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.38 billion. Analysts forecast that Sandvik will post 1.27 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SDVKY. Zacks Research cut shares of Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 16th. Citigroup reaffirmed a "buy" rating on shares of Sandvik in a report on Monday, January 12th. Jefferies Financial Group cut Sandvik from a "strong-buy" rating to a "hold" rating in a research report on Sunday, January 25th. Morgan Stanley cut Sandvik from an "overweight" rating to an "equal weight" rating in a research report on Thursday, March 12th. Finally, Barclays restated an "overweight" rating on shares of Sandvik in a research note on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy".

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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