Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) Shares Gap Down - Here's Why

Key Points

• Usiminas shares gapped down from a prior close of $1.30 to open at $1.18, later trading at $1.25 on volume of 2,931 shares.
• Zacks Research downgraded the stock from “strong buy” to “hold,” while the sole analyst covering the company also rates it Hold.
• The company exceeded quarterly expectations, reporting $0.06 in earnings per share versus a $0.02 estimate and revenue of $1.21 billion versus $1.20 billion expected, despite a negative net margin of 8.87%.

Shares of Usinas Siderurgicas de Minas Gerais SA (OTCMKTS:USNZY - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $1.30, but opened at $1.18. Usinas Siderurgicas de Minas Gerais shares last traded at $1.25, with a volume of 2,931 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, Zacks Research lowered shares of Usinas Siderurgicas de Minas Gerais from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has an average rating of "Hold".

Usinas Siderurgicas de Minas Gerais Price Performance

The business has a fifty day moving average of $1.61 and a 200 day moving average of $1.53. The company has a quick ratio of 2.96, a current ratio of 4.54 and a debt-to-equity ratio of 0.26. The firm has a market cap of $698.47 million, a P/E ratio of -3.75, a PEG ratio of 0.12 and a beta of 1.47.

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY - Get Free Report) last announced its earnings results on Thursday, July 30th. The basic materials company reported $0.06 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.04. Usinas Siderurgicas de Minas Gerais had a positive return on equity of 5.60% and a negative net margin of 8.87%.The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.20 billion. On average, sell-side analysts anticipate that Usinas Siderurgicas de Minas Gerais SA will post 0.27 earnings per share for the current year.

Usinas Siderurgicas de Minas Gerais Company Profile

Usinas Siderúrgicas de Minas Gerais SA OTCMKTS: USNZY, widely known as Usiminas, is one of Brazil's leading integrated steel producers. The company operates across the full steel value chain, from iron ore mining to the manufacture and distribution of flat steel products. Its portfolio includes hot- and cold-rolled coils, coated sheets, tin plates, plates and tubular products, which serve a broad array of end markets such as construction, automotive, packaging, machinery and energy.

Founded in the mid-1950s through a partnership between Brazilian and international investors, Usiminas is headquartered in Belo Horizonte and maintains its principal steelmaking facilities in Ipatinga, Minas Gerais, as well as secondary operations in Cubatão (São Paulo) and Santa Cruz.

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