Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY) Shares Gap Up - Time to Buy?

Key Points

• Shares gapped up pre-market from $1.46 to $1.57 and last traded at $1.58 on a volume of 58,972, and Zacks upgraded the stock from "hold" to Strong Buy with MarketBeat showing an average "Strong Buy" rating.
• The company missed quarterly estimates, reporting EPS of $0.11 vs. $0.13 expected and revenue of $1.11 billion vs. $6.63 billion expected, and posted a negative net margin of -10.22% despite a 4.13% return on equity.
• Usiminas shows strong liquidity and low leverage (quick ratio 2.67, current ratio 4.12, debt/equity 0.27), has a market cap of $860.08M and a negative PE of -4.03, while analysts forecast FY EPS of $0.12.

Usinas Siderurgicas de Minas Gerais SA (OTCMKTS:USNZY - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $1.46, but opened at $1.57. Usinas Siderurgicas de Minas Gerais shares last traded at $1.58, with a volume of 58,972 shares traded.

Wall Street Analysts Forecast Growth

Separately, Zacks Research raised Usinas Siderurgicas de Minas Gerais from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 13th. One equities research analyst has rated the stock with a Strong Buy rating, According to data from MarketBeat, the company presently has an average rating of "Strong Buy".

Usinas Siderurgicas de Minas Gerais Stock Up 7.5%

The company has a quick ratio of 2.67, a current ratio of 4.12 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $860.08 million, a PE ratio of -4.03 and a beta of 1.28. The business has a 50-day moving average price of $1.30 and a 200-day moving average price of $1.18.

Usinas Siderurgicas de Minas Gerais (OTCMKTS:USNZY - Get Free Report) last announced its quarterly earnings data on Friday, April 24th. The basic materials company reported $0.11 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.02). The company had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $6.63 billion. Usinas Siderurgicas de Minas Gerais had a positive return on equity of 4.13% and a negative net margin of 10.22%. Equities research analysts forecast that Usinas Siderurgicas de Minas Gerais SA will post 0.12 earnings per share for the current fiscal 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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