Sherritt International (TSE:S) Shares Down 30% – Time to Sell?

Sherritt International Co. (TSE:S)’s stock price was down 30% on Thursday . The company traded as low as C$0.16 and last traded at C$0.18. Approximately 6,494,229 shares traded hands during trading, an increase of 499% from the average daily volume of 1,083,800 shares. The stock had previously closed at C$0.25.

Sherritt International News Roundup

Here are the key news stories impacting Sherritt International this week:

• Negative Sentiment: Sherritt said it is halting joint venture activities in Cuba as expanding U.S. sanctions create operational and compliance risk, a move that has weighed heavily on the stock. Sherritt shares crater on Cuba sanctions shock
• Negative Sentiment: Reports say the company is effectively pulling out of Cuba JV activity under the threat of sanctions, which raises concerns about lost production, weaker earnings, and possible further disruptions. Sherritt pulls out of Cuba JV under threat of U.S. sanctions; shares sink 20%
• Negative Sentiment: Multiple outlets reported that Sherritt is suspending Cuba operations, highlighting the immediate impact of U.S. sanctions and adding pressure to the stock. Sherritt suspending operations in Cuba, three directors resign after U.S. expands sanctions
• Negative Sentiment: News that Sherritt’s Cuba venture activities have been halted has reinforced fears that sanctions could meaningfully hurt the company’s near-term business outlook. Sherritt Provides Update on Joint Venture Activities in Cuba

Analysts Set New Price Targets

Separately, National Bank Financial set a C$0.30 target price on Sherritt International and gave the stock a “sector perform” rating in a research report on Wednesday, April 8th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of C$0.30.

Sherritt International Price Performance

The business has a 50-day moving average price of C$0.23 and a two-hundred day moving average price of C$0.20. The company has a market capitalization of C$94.94 million, a price-to-earnings ratio of -0.96, a price-to-earnings-growth ratio of 0.02 and a beta of -0.45. The company has a quick ratio of 1.24, a current ratio of 1.28 and a debt-to-equity ratio of 65.78.

Sherritt International (TSE:S) last announced its quarterly earnings results on Tuesday, February 10th. The company reported C($0.03) earnings per share (EPS) for the quarter. Sherritt International had a negative return on equity of 20.46% and a negative net margin of 86.00%.The company had revenue of C$163.20 million for the quarter. As a group, research analysts anticipate that Sherritt International Co. will post 0.0576923 EPS for the current year.

Sherritt International Company Profile

Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition. Leveraging its technical expertise and decades of experience in critical minerals processing, Sherritt is committed to expanding domestic refining capacity and reducing reliance on foreign sources. The Corporation operates a strategically important refinery in Alberta, Canada, recognized as the only significant cobalt refinery and one of just three nickel refineries in North America.