ArcelorMittal (NYSE:MT) Raised to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of ArcelorMittal (NYSE:MT) from a sell rating to a hold rating in a research note released on Thursday morning, Zacks.com reports. They currently have $14.00 price objective on the basic materials company’s stock.

According to Zacks, “ArcelorMittal is reducing costs and expanding its advanced high strength steel product line under the Action 2020 program. Moreover, the company is likely to gain from the Ilva buyout and efforts to reduce debt. It is also expanding its steel-making capacity and is focused on shifting to high value-added products. However, the company faces challenges in European market. A combination of weakening demand, high energy costs, rising carbon costs and increased imports have led to the decision of lowering production in the region. The temporary reduction is likely to put pressure on the company’s margins. Also, U.S.-China trade tensions will likely dent steel demand in China. The steel industry is also affected by global production overcapacity. The company has also underperformed the industry it belongs to in the past year.”

MT has been the subject of a number of other research reports. Deutsche Bank dropped their price target on shares of ArcelorMittal from $25.00 to $18.00 and set a buy rating for the company in a research note on Monday, October 7th. Credit Suisse Group reiterated a buy rating on shares of ArcelorMittal in a research note on Tuesday, September 10th. UBS Group reiterated a neutral rating on shares of ArcelorMittal in a research note on Wednesday. ValuEngine upgraded shares of ArcelorMittal from a strong sell rating to a sell rating in a research note on Wednesday, October 2nd. Finally, Goldman Sachs Group upgraded shares of ArcelorMittal from a neutral rating to a buy rating in a research note on Wednesday, June 12th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average price target of $21.14.

Shares of NYSE:MT traded up $0.76 during midday trading on Thursday, reaching $14.76. The company had a trading volume of 4,241,400 shares, compared to its average volume of 3,905,581. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.41 and a quick ratio of 0.52. The stock’s fifty day moving average price is $14.53 and its 200-day moving average price is $17.00. The stock has a market capitalization of $14.28 billion, a P/E ratio of 2.56 and a beta of 2.41. ArcelorMittal has a one year low of $12.53 and a one year high of $28.89.

ArcelorMittal (NYSE:MT) last issued its quarterly earnings results on Thursday, August 1st. The basic materials company reported $0.49 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.49. The business had revenue of $19.28 billion during the quarter, compared to analyst estimates of $18.90 billion. ArcelorMittal had a net margin of 2.73% and a return on equity of 8.39%. The business’s revenue was down 3.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.83 earnings per share. As a group, sell-side analysts forecast that ArcelorMittal will post 0.74 earnings per share for the current year.

Hedge funds have recently added to or reduced their stakes in the business. Luminus Management LLC grew its position in shares of ArcelorMittal by 116.1% during the second quarter. Luminus Management LLC now owns 3,729,282 shares of the basic materials company’s stock worth $67,239,000 after acquiring an additional 2,003,515 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. grew its position in shares of ArcelorMittal by 19.6% during the second quarter. Ladenburg Thalmann Financial Services Inc. now owns 35,741 shares of the basic materials company’s stock worth $644,000 after acquiring an additional 5,867 shares during the last quarter. MidWestOne Financial Group Inc. bought a new position in shares of ArcelorMittal during the second quarter worth about $461,000. Morgan Stanley grew its position in shares of ArcelorMittal by 23.7% during the second quarter. Morgan Stanley now owns 417,678 shares of the basic materials company’s stock worth $7,531,000 after acquiring an additional 80,096 shares during the last quarter. Finally, Covalis Capital LLP grew its position in shares of ArcelorMittal by 8.9% during the second quarter. Covalis Capital LLP now owns 158,690 shares of the basic materials company’s stock worth $2,861,000 after acquiring an additional 13,000 shares during the last quarter. Hedge funds and other institutional investors own 2.59% of the company’s stock.

ArcelorMittal Company Profile

ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. It operates through five segments: NAFTA, Brazil, Europe, ACIS, and Mining. The company produces finished and semi-finished steel products with various specifications.

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