Ryerson (RYI) Rating Lowered to Strong Sell at Zacks Investment Research

Ryerson (NYSE:RYI) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday.

According to Zacks, “Ryerson Holding Corporation is a services company that processes and distributes metals. The Company, through its subsidiaries, purchases, processes, and distributes various forms of stainless steel, aluminum, carbon, alloy steel, nickel, and red metals. Ryerson serves several industries including oil and gas, industrial equipment, transportation equipment, heavy equipment and electrical machinery. It has operations primarily in the United States, Mexico, Canada, China and Brazil. Ryerson Holding Corporation is headquartered in Chicago. “

Other equities analysts have also recently issued reports about the stock. Deutsche Bank upgraded shares of Ryerson from a “hold” rating to a “buy” rating and set a $12.00 price objective on the stock in a research report on Monday, November 5th. ValuEngine cut shares of Ryerson from a “hold” rating to a “sell” rating in a research report on Tuesday, September 4th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and one has given a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $11.42.

NYSE RYI opened at $7.58 on Wednesday. Ryerson has a twelve month low of $7.12 and a twelve month high of $12.95. The company has a debt-to-equity ratio of 12.03, a quick ratio of 1.06 and a current ratio of 2.45. The company has a market cap of $285.70 million, a price-to-earnings ratio of 20.49 and a beta of 1.89.

Ryerson (NYSE:RYI) last posted its quarterly earnings data on Friday, November 2nd. The basic materials company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.07). Ryerson had a return on equity of 101.73% and a net margin of 2.60%. The firm had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same quarter in the previous year, the firm posted $0.05 earnings per share. The company’s revenue for the quarter was up 44.6% on a year-over-year basis. As a group, equities analysts expect that Ryerson will post 1.24 earnings per share for the current year.

In related news, CEO Edward J. Lehner purchased 4,125 shares of the stock in a transaction dated Tuesday, November 20th. The shares were acquired at an average cost of $8.10 per share, for a total transaction of $33,412.50. Following the acquisition, the chief executive officer now directly owns 215,439 shares in the company, valued at approximately $1,745,055.90. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last 90 days, insiders have bought 13,625 shares of company stock worth $113,158. 1.10% of the stock is currently owned by corporate insiders.

Several institutional investors have recently bought and sold shares of RYI. Martingale Asset Management L P purchased a new position in shares of Ryerson during the 2nd quarter valued at $151,000. Jefferies Group LLC purchased a new position in shares of Ryerson during the 3rd quarter valued at $162,000. Wakefield Asset Management LLLP purchased a new position in shares of Ryerson during the 3rd quarter valued at $222,000. O Shaughnessy Asset Management LLC grew its holdings in shares of Ryerson by 59.8% during the 3rd quarter. O Shaughnessy Asset Management LLC now owns 20,986 shares of the basic materials company’s stock valued at $237,000 after acquiring an additional 7,850 shares in the last quarter. Finally, Engineers Gate Manager LP purchased a new position in shares of Ryerson during the 2nd quarter valued at $271,000. Institutional investors and hedge funds own 36.83% of the company’s stock.

About Ryerson

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. The company offers a line of products in stainless steel, aluminum, carbon steel, and alloy steels, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural products, and tubing.

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