An analyst sees good growth prospects for Algoma Steel Group Inc. (ASTL)

Algoma Steel Group Inc. (NASDAQ: ASTL) stock jumped 3.71% on Friday to $9.23 against a previous-day closing price of $8.90. With 3.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.93 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $9.30 whereas the lowest price it dropped to was $8.95. The 52-week range on ASTL shows that it touched its highest point at $13.65 and its lowest point at $7.75 during that stretch. With its current market cap of 1.39 billion, ASTL has annualized dividend of $0.20 while the current yield stands at 2.17%.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ASTL was up-trending over the past week, with a rise of 0.33%, but this was up by 2.21% over a month. Three-month performance dropped to -4.94% while six-month performance rose 2.33%. The stock lost -10.21% in the past year, while it has lost -14.62% so far this year. A look at the trailing 12-month EPS for ASTL yields 5.57 with Next year EPS estimates of 1.98. For the next quarter, that number is 1.43. This implies an EPS growth rate of 953.70% for this year and -54.71% for next year.

Float and Shares Shorts:

At present, 147.96 million ASTL shares are outstanding with a float of 135.68 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.1 million, which was 2.11% higher than short shares on Jun 14, 2022. In addition to Mr. Rajat Marwah as the firm’s Chief Financial Officer, Mr. Mark Patrick Nogalo serves as its VP of Maintenance & Operating Services.

Institutional Ownership:

Through their ownership of 65.86% of ASTL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold — of ASTL, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 0.29% stake in ASTL, the Fidelity Capital & Income Fund is the largest stakeholder. A total of 425,798 shares are owned by the mutual fund manager. The EHP Global Arbitrage Alternative, which owns about 0.23% of ASTL stock, is the second-largest Mutual Fund holder. It holds 335,000 shares valued at 3.01 million. EHP Advantage Alternative Fund holds 0.10% of the stake in ASTL, owning 139,320 shares worth 1.25 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ASTL since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ASTL analysts setting a high price target of $21.50 and a low target of $16.00, the average target price over the next 12 months is $18.10. Based on these targets, ASTL could surge 132.94% to reach the target high and rise by 73.35% to reach the target low. Reaching the average price target will result in a growth of 96.1% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ASTL will report FY 2023 earnings on 06/14/2023. Analysts have provided yearly estimates in a range of $5.56 being high and $3.87 being low. For ASTL, this leads to a yearly average estimate of $4.79. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Algoma Steel Group Inc. surprised analysts by $0.02 when it reported $1.49 EPS against a consensus estimate of $1.47. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $1.38 and the low estimate is $1.26. The average estimate for the next quarter is thus $1.30.

Dividends & Yield:

In terms of dividends, ASTL has a current ratio of $0.20, which is $0.20 over the trailing 12-months. Dividend yield is another indicator that appeals to many investors, and ASTL currently yields $1.08. In the past year, ASTL’s dividend yield has been $1.08.

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