Worthington Steel (NYSE:WS) Shares Gap Down - Here's Why

Key Points

• Worthington Steel's share price gapped down from a previous close of $33.97 to an opening price of $29.05 before stabilizing at $31.26.
• Analysts have raised the target price for Worthington Steel from $34.00 to $36.00, with a current average rating of "Buy" and a forecasted EPS of 2.26 for the current year.
• The company will pay a quarterly dividend of $0.16 on December 26th, translating to an annualized payment of $0.64 with a dividend yield of 2.0%.

Worthington Steel, Inc. (NYSE:WS - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $33.97, but opened at $29.05. Worthington Steel shares last traded at $31.26, with a volume of 171,871 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently commented on WS shares. KeyCorp raised their target price on shares of Worthington Steel from $34.00 to $36.00 and gave the stock an "overweight" rating in a report on Tuesday, September 16th. Wall Street Zen upgraded shares of Worthington Steel from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. One research analyst has rated the stock with a Buy rating, According to MarketBeat, the company presently has an average rating of "Buy" and an average target price of $36.00.

Worthington Steel Price Performance

The firm has a market cap of $1.60 billion, a price-to-earnings ratio of 14.45 and a beta of 1.89. The firm's fifty day moving average is $32.10 and its 200-day moving average is $28.46.

Worthington Steel (NYSE:WS - Get Free Report) last released its earnings results on Wednesday, September 24th. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.05. The business had revenue of $872.90 million for the quarter, compared to analyst estimates of $785.30 million. Worthington Steel had a net margin of 3.58% and a return on equity of 9.43%. Worthington Steel's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.56 earnings per share. As a group, equities research analysts anticipate that Worthington Steel, Inc. will post 2.26 EPS for the current year.

Worthington Steel Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Stockholders of record on Thursday, December 18th will be issued a dividend of $0.16 per share. The ex-dividend date is Friday, December 12th. This represents a $0.64 annualized dividend and a dividend yield of 2.0%. Worthington Steel's dividend payout ratio is currently 29.36%.

Hedge Funds Weigh In On Worthington Steel

Several institutional investors have recently made changes to their positions in WS. Nuveen LLC acquired a new position in shares of Worthington Steel during the first quarter valued at about $8,901,000. American Century Companies Inc. increased its position in shares of Worthington Steel by 966.1% during the first quarter. American Century Companies Inc. now owns 269,160 shares of the company's stock worth $6,818,000 after acquiring an additional 243,912 shares in the last quarter. Bridgeway Capital Management LLC increased its position in shares of Worthington Steel by 154.3% during the second quarter. Bridgeway Capital Management LLC now owns 340,752 shares of the company's stock worth $10,165,000 after acquiring an additional 206,752 shares in the last quarter. CSM Advisors LLC bought a new stake in shares of Worthington Steel during the second quarter worth about $5,416,000. Finally, Empowered Funds LLC bought a new stake in shares of Worthington Steel during the first quarter worth about $4,485,000. Institutional investors and hedge funds own 45.41% of the company's stock.

About Worthington Steel

Worthington Steel, Inc operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy.

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