Zacks Research Downgrades Algoma Steel Group (NASDAQ:ASTL) to Strong Sell

Algoma Steel Group (NASDAQ:ASTL) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Algoma Steel Group in a report on Friday, March 27th. Two research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Algoma Steel Group currently has a consensus rating of “Reduce”.

Algoma Steel Group Stock Performance

Shares of Algoma Steel Group stock opened at $4.99 on Monday. The company has a 50 day moving average of $4.42 and a 200-day moving average of $4.31. Algoma Steel Group has a 1-year low of $3.02 and a 1-year high of $7.24. The company has a current ratio of 2.18, a quick ratio of 1.03 and a debt-to-equity ratio of 1.36. The company has a market cap of $524.87 million, a PE ratio of -0.74 and a beta of 1.55.

Algoma Steel Group (NASDAQ:ASTL) last issued its quarterly earnings results on Tuesday, May 12th. The company reported ($1.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.78) by ($0.28). Algoma Steel Group had a negative return on equity of 42.31% and a negative net margin of 47.61%. As a group, equities research analysts forecast that Algoma Steel Group will post -1.83 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Algoma Steel Group

Institutional investors have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. acquired a new position in Algoma Steel Group during the 2nd quarter worth approximately $32,000. Element Pointe Advisors LLC acquired a new position in Algoma Steel Group during the 4th quarter worth approximately $41,000. Federation des caisses Desjardins du Quebec increased its position in Algoma Steel Group by 101.6% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 17,860 shares of the company’s stock worth $73,000 after purchasing an additional 9,000 shares in the last quarter. FIL Ltd acquired a new position in Algoma Steel Group during the 4th quarter worth approximately $85,000. Finally, Olympiad Research LP acquired a new position in Algoma Steel Group during the 3rd quarter worth approximately $74,000. 72.00% of the stock is currently owned by institutional investors and hedge funds.

About Algoma Steel Group

Algoma Steel Group Inc is a North American steel producer headquartered in Sault Ste. Marie, Ontario. The company operates a modern electric arc furnace (EAF) complex and an integrated rolling mill, enabling it to transform scrap and direct reduced iron into a wide range of steel products. Algoma Steel Group returned to public markets in 2021 with listings on both the Toronto Stock Exchange and the Nasdaq under the symbol ASTL.

Founded in 1901 as Algoma Steel Corporation, the company grew to become one of Canada’s leading steelmakers before undergoing restructuring in the early 2000s.