SSAB (OTCMKTS:SSAAY) Shares Gap Down - Time to Sell?

Key Points

• Gap down: Shares opened at $3.67 after a prior close of $4.25 (volume 2,009), trading below the 50-day moving average ($4.25) but roughly in line with the 200-day average ($3.69).
• Earnings miss: SSAB reported Q EPS of $0.02 versus $0.03 expected and revenue of $2.35B versus $2.76B expected, with a net margin of 5.1% and ROE of 7.29%, signaling weaker-than-expected results.
• Analyst stance and fundamentals: Brokerages show a consensus of "Moderate Buy" (2 Buy, 2 Hold); the company has a $7.32B market cap, P/E of 14.68 and low debt-to-equity of 0.10.

Shares of SSAB (OTCMKTS:SSAAY - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $4.25, but opened at $3.67. SSAB shares last traded at $3.67, with a volume of 2,009 shares trading hands.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on SSAAY. Citigroup reiterated a "buy" rating on shares of SSAB in a report on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of SSAB in a report on Thursday, January 29th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy".

SSAB Stock Performance

The company's 50-day moving average is $4.25 and its two-hundred day moving average is $3.69. The company has a quick ratio of 1.39, a current ratio of 2.48 and a debt-to-equity ratio of 0.10. The company has a market cap of $7.32 billion, a P/E ratio of 14.68 and a beta of 1.33.

SSAB (OTCMKTS:SSAAY - Get Free Report) last released its earnings results on Wednesday, January 28th. The basic materials company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). SSAB had a net margin of 5.10% and a return on equity of 7.29%. The company had revenue of $2.35 billion for the quarter, compared to the consensus estimate of $2.76 billion. Equities analysts predict that SSAB will post 0.24 EPS for the current year.

SSAB Company Profile

SSAB OTCMKTS: SSAAY is a Swedish steel producer specializing in high-strength and wear-resistant steels. The company develops and manufactures steel products for customers in industries such as construction, automotive, mining and heavy transport. SSAB's key brands include Hardox® for abrasion-resistant steel, Strenx® for high-strength steel in structural applications and Docol® for advanced automotive steel solutions.

Founded in 1978 through the merger of Sweden's state-owned steelworks, SSAB was privatized in the mid-1980s and listed on the Nasdaq Stockholm exchange.

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