Worthington Steel (NYSE:WS) Shares Down 7.8% - What's Next?

Key Points

• Shares fell ~7.8% after Worthington reported Q3 EPS of $0.27 vs. $0.47 expected and revenue of $769.8M vs. ~$883M consensus; revenue rose 12% YoY but weaker margins prompted the selloff.
• The board declared a quarterly dividend of $0.16 per share (~2.3% yield), while management reiterated strategic plans — including closing the Kloeckner acquisition in H2 2026, pursuing automotive share gains and AI-driven efficiency improvements — which could boost scale and margins if execution stays on track.
• Analyst coverage is mixed: the consensus rating is a Hold with an average price target near $46 (well above the current ~$27), indicating potential upside but also near‑term uncertainty and likely volatility as models are updated.

Worthington Steel, Inc. (NYSE:WS - Get Free Report) shares dropped 7.8% during mid-day trading on Friday . The company traded as low as $27.35 and last traded at $27.4670. Approximately 128,002 shares traded hands during trading, a decline of 58% from the average daily volume of 304,368 shares. The stock had previously closed at $29.79.

Key Worthington Steel News

Here are the key news stories impacting Worthington Steel this week:

• Positive Sentiment: Board declared a quarterly cash dividend of $0.16 per share (annualized yield ~2.1%), providing income support and signaling confidence in cash flow. Worthington Steel Declares Quarterly Dividend
• Positive Sentiment: Management reiterated strategic growth plans: targeting close of the Kloeckner acquisition in H2 2026, pursuing automotive end-market share gains and AI-driven operational improvements — moves that could boost scale and margins if execution stays on track. Worthington Steel targets closing Kloeckner acquisition in H2 2026 amid automotive share gains and AI-driven transformation
• Neutral Sentiment: Sell‑side coverage increased as KeyCorp initiated coverage — this raises visibility and may add liquidity; impact depends on the coverage stance and any published target or rating. KeyCorp Initiates Coverage on Worthington Steel NYSE: WS
• Neutral Sentiment: Earnings call transcript, slide deck and follow-up commentary were published (useful for parsing management commentary on margins, working capital and acquisition timing). Analysts and investors will use the call details to adjust near‑term forecasts. Worthington Steel, Inc. (WS) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Q3 results missed expectations: EPS of $0.27 vs. consensus ~$0.47 and revenue $769.8M vs. ~$883M consensus — revenue growth year‑over‑year (+12%) didn’t offset lower margin/profitability, prompting a selloff. Management’s near‑term outlook and any guidance revisions will be key. Worthington Steel, Inc. (WS) Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Market reaction: multiple outlets reported the stock tumbling after the miss, reflecting investor concern around margins and near‑term demand for steel products. Expect volatility as analysts update models and investors reassess acquisition-related dilution/benefit timing. Why Worthington Steel, Inc.’s (WS) Stock Is Down 11.98%

Analyst Ratings Changes

Several analysts recently commented on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Worthington Steel in a report on Wednesday, January 21st. Zacks Research upgraded shares of Worthington Steel from a "strong sell" rating to a "hold" rating in a research report on Monday, February 16th. KeyCorp began coverage on shares of Worthington Steel in a research note on Wednesday. They issued an "overweight" rating and a $46.00 price objective on the stock. Finally, Wall Street Zen upgraded shares of Worthington Steel from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 28th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $46.00.

Worthington Steel Trading Down 7.0%

The company has a current ratio of 1.80, a quick ratio of 1.09 and a debt-to-equity ratio of 0.04. The firm has a 50-day moving average of $40.01 and a 200 day moving average of $35.58. The company has a market cap of $1.41 billion, a P/E ratio of 15.57 and a beta of 1.62.

Worthington Steel (NYSE:WS - Get Free Report) last issued its earnings results on Wednesday, March 25th. The company reported $0.27 earnings per share for the quarter, missing analysts' consensus estimates of $0.47 by ($0.20). Worthington Steel had a return on equity of 10.19% and a net margin of 3.64%.The business had revenue of $769.80 million during the quarter, compared to the consensus estimate of $882.95 million. During the same quarter in the previous year, the firm posted $0.35 earnings per share. The company's revenue for the quarter was up 12.0% compared to the same quarter last year. On average, analysts predict that Worthington Steel, Inc. will post 2.26 earnings per share for the current fiscal year.

Worthington Steel Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 12th will be given a dividend of $0.16 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $0.64 annualized dividend and a dividend yield of 2.3%. Worthington Steel's dividend payout ratio (DPR) is 35.96%.

Insider Buying and Selling at Worthington Steel

In related news, Director Jon J. Bowsher purchased 2,500 shares of Worthington Steel stock in a transaction on Friday, January 30th. The stock was acquired at an average cost of $40.15 per share, for a total transaction of $100,375.00. Following the completion of the acquisition, the director owned 17,893 shares of the company's stock, valued at $718,403.95. This trade represents a 16.24% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Scott J. Kelly purchased 7,000 shares of Worthington Steel stock in a transaction on Tuesday, January 27th. The stock was bought at an average price of $39.11 per share, with a total value of $273,770.00. Following the completion of the acquisition, the director directly owned 16,157 shares of the company's stock, valued at approximately $631,900.27. This trade represents a 76.44% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 2.60% of the company's stock.

Hedge Funds Weigh In On Worthington Steel

Institutional investors and hedge funds have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. increased its position in Worthington Steel by 1,239.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 750 shares of the company's stock valued at $26,000 after buying an additional 694 shares in the last quarter. Hantz Financial Services Inc. boosted its holdings in Worthington Steel by 56.4% in the fourth quarter. Hantz Financial Services Inc. now owns 910 shares of the company's stock worth $32,000 after acquiring an additional 328 shares in the last quarter. Torren Management LLC acquired a new stake in Worthington Steel in the fourth quarter valued at approximately $48,000. MAI Capital Management grew its stake in Worthington Steel by 39.8% in the third quarter. MAI Capital Management now owns 1,404 shares of the company's stock valued at $43,000 after acquiring an additional 400 shares during the period. Finally, Caldwell Trust Co bought a new stake in shares of Worthington Steel during the second quarter valued at approximately $52,000. Institutional investors own 45.41% of the company's stock.

About Worthington Steel

Worthington Steel NYSE: WS is a leading North American steel processor specializing in the production of flat-rolled, coated and painted sheet and coil products. Operating as a wholly owned subsidiary of Worthington Industries, the company serves a broad range of industries, including construction, automotive, appliance, energy and agricultural equipment. Its core business activities encompass the processing, finishing and distribution of carbon and advanced high-strength steels, aluminum and stainless products to manufacturers across the continent.

The company’s product portfolio includes hot-dip galvanizing, galvannealed, aluminized and pre-painted steel products, as well as cold-rolled and hot-rolled coil.

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