Algoma Steel Group Inc. (ASTL) can make a big difference with a little luck

Algoma Steel Group Inc. (NASDAQ: ASTL) stock fell -0.81% on Tuesday to $7.38 against a previous-day closing price of $7.44. With 0.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.16 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $7.42 whereas the lowest price it dropped to was $7.27. The 52-week range on ASTL shows that it touched its highest point at $12.50 and its lowest point at $5.64 during that stretch. It currently has a 1-year price target of $11.67. With its current market cap of 738.22 million, ASTL has annualized dividend of $0.20 while the current yield stands at 2.71%.

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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 14.42%, but this was up by 15.86% over a month. Three-month performance surged to 5.58% while six-month performance fell -22.80%. The stock lost -13.38% in the past year, while it has gained 16.40% so far this year. A look at the trailing 12-month EPS for ASTL yields 4.89 with Next year EPS estimates of 1.19. For the next quarter, that number is -0.47. This implies an EPS growth rate of 953.70% for this year and -20.29% for next year.

Float and Shares Shorts:

At present, 103.86 million ASTL shares are outstanding with a float of 95.74 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.75 million, which was 6.40% higher than short shares on Sep 14, 2022. In addition to Mr. Rajat Marwah as the firm’s Chief Financial Officer, Mr. John Ralph Naccarato serves as its VP of Strategy & Chief Legal Officer.

Institutional Ownership:

Through their ownership of 86.67% 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 0.94% stake in ASTL, the EHP Advantage Alternative Fund is the largest stakeholder. A total of 974,531 shares are owned by the mutual fund manager. The General American Investors Fund, which owns about 0.94% of ASTL stock, is the second-largest Mutual Fund holder. It holds 970,960 shares valued at 6.16 million. Fidelity Capital & Income Fund holds 0.62% of the stake in ASTL, owning 638,696 shares worth 4.05 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 $15.00 and a low target of $8.00, the average target price over the next 12 months is $11.67. Based on these targets, ASTL could surge 103.25% to reach the target high and rise by 8.4% to reach the target low. Reaching the average price target will result in a growth of 58.13% 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 $2.61 being high and $1.17 being low. For ASTL, this leads to a yearly average estimate of $1.79. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Algoma Steel Group Inc. surprised analysts by -$0.07 when it reported $0.36 EPS against a consensus estimate of $0.43. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.41 and the low estimate is -$0.52. The average estimate for the next quarter is thus -$0.45.


Dividends & Yield:

In terms of dividends, ASTL has a current ratio of $0.2, which is $0.2 over the trailing 12-months. Dividend yield is another indicator that appeals to many investors, and ASTL currently yields $2.71. In the past year, ASTL’s dividend yield has been $2.71. Accordingly, ASTL has a current buyback yield of $14.98. This was $14.98 for the TTM.

Summary of Insider Activity:

Insiders traded ASTL stock several times over the past three months with 9 Buys and 2 Sells. In these transactions, 153,674 shares were bought while 585,294 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 1,885,294 while 1,776,007 shares were sold.

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