Zacks Investment Research Downgrades Schnitzer Steel Industries (NASDAQ:SCHN) to Hold

Zacks Investment Research cut shares of Schnitzer Steel Industries (NASDAQ:SCHN) from a strong-buy rating to a hold rating in a report issued on Tuesday morning, Zacks.com reports.

According to Zacks, “Schnitzer Steel Industries, Inc. collects, processes and recycles metals by operating one of the largest metals recycling businesses in the United States. They also manufacture finished steel products at their technologically advanced steel mini-mill. “

Other equities analysts have also issued research reports about the stock. BidaskClub lowered shares of Schnitzer Steel Industries from a strong-buy rating to a buy rating in a research report on Saturday, August 3rd. Cowen restated a market perform rating and issued a $25.00 price objective (up previously from $24.00) on shares of Schnitzer Steel Industries in a research note on Tuesday, June 25th. Finally, ValuEngine downgraded shares of Schnitzer Steel Industries from a hold rating to a sell rating in a research note on Saturday, August 10th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $27.00.

NASDAQ:SCHN opened at $22.52 on Tuesday. Schnitzer Steel Industries has a 12 month low of $20.94 and a 12 month high of $28.90. The firm has a market cap of $631.96 million, a price-to-earnings ratio of 6.33 and a beta of 1.45. The company has a quick ratio of 1.22, a current ratio of 2.36 and a debt-to-equity ratio of 0.20. The company’s 50 day moving average is $24.92 and its 200-day moving average is $24.19.

Schnitzer Steel Industries (NASDAQ:SCHN) last released its quarterly earnings results on Wednesday, June 26th. The basic materials company reported $0.63 EPS for the quarter, beating the Zacks’ consensus estimate of $0.61 by $0.02. Schnitzer Steel Industries had a net margin of 4.63% and a return on equity of 15.72%. The company had revenue of $547.00 million for the quarter, compared to analyst estimates of $542.24 million. During the same quarter last year, the firm posted $1.26 earnings per share. The company’s quarterly revenue was down 16.1% compared to the same quarter last year. Research analysts predict that Schnitzer Steel Industries will post 2.27 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 27th. Stockholders of record on Tuesday, August 13th will be paid a $0.1875 dividend. The ex-dividend date of this dividend is Monday, August 12th. This represents a $0.75 annualized dividend and a dividend yield of 3.33%. Schnitzer Steel Industries’s payout ratio is 13.91%.

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in shares of Schnitzer Steel Industries by 1.4% in the second quarter. Vanguard Group Inc. now owns 2,643,931 shares of the basic materials company’s stock worth $69,191,000 after acquiring an additional 35,680 shares during the last quarter. BlackRock Inc. grew its stake in shares of Schnitzer Steel Industries by 3.7% in the second quarter. BlackRock Inc. now owns 2,222,115 shares of the basic materials company’s stock worth $58,152,000 after acquiring an additional 79,777 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Schnitzer Steel Industries by 22.0% in the second quarter. Bank of New York Mellon Corp now owns 1,027,817 shares of the basic materials company’s stock worth $26,898,000 after acquiring an additional 185,390 shares during the last quarter. LSV Asset Management grew its stake in shares of Schnitzer Steel Industries by 1.6% in the second quarter. LSV Asset Management now owns 877,800 shares of the basic materials company’s stock worth $22,972,000 after acquiring an additional 14,000 shares during the last quarter. Finally, Nuveen Asset Management LLC acquired a new stake in shares of Schnitzer Steel Industries in the second quarter worth $18,769,000. Institutional investors and hedge funds own 84.71% of the company’s stock.

Schnitzer Steel Industries Company Profile

Schnitzer Steel Industries, Inc recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. The company operates through two segments, Auto and Metals Recycling (AMR), and Cascade Steel and Scrap (CSS). The AMR segment acquires, processes, and recycles scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting.

Further Reading: What is the Ex-Dividend Date in Investing?

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