Companhia Siderurgica Nacional (SID) Raised to “Hold” at Zacks Investment Research
According to Zacks, “Companhia Siderurgica Nacional's diversified business structure with exposure in steel, iron ore mining, logistics, cement and energy industries will prove beneficial over the long run. Also, demand for domestic steel will likely improve with the increase in infrastructural investments. However, the company is exposed to risks arising from near-term headwinds. Huge debt levels and higher costs and expenses, if left unchecked, will prove detrimental to the company's profitability. Moreover, the company's international operations are subject to risks arising from unfavorable foreign currency translations. In second-quarter 2016, the company recorded net loss of R$43 million or $0.01 per ADR. Revenues increased 18% on higher sales volume in the mining segment. Crude steel production declined 55% year over year, while production of rolled steel decreased 35%.”
Shares of Companhia Siderurgica Nacional (NYSE:SID) opened at 2.58 on Thursday. Companhia Siderurgica Nacional has a 1-year low of $0.73 and a 1-year high of $3.92. The firm has a market cap of $3.50 billion, a price-to-earnings ratio of 19.85 and a beta of 2.37. The stock has a 50 day moving average price of $2.93 and a 200-day moving average price of $2.67.
Several hedge funds have recently modified their holdings of the company. Parametric Portfolio Associates LLC boosted its stake in Companhia Siderurgica Nacional by 19.1% in the second quarter. Parametric Portfolio Associates LLC now owns 8,927,474 shares of the company’s stock worth $21,872,000 after buying an additional 1,428,672 shares during the last quarter. Van ECK Associates Corp boosted its stake in Companhia Siderurgica Nacional by 70.4% in the second quarter. Van ECK Associates Corp now owns 2,142,826 shares of the company’s stock worth $5,250,000 after buying an additional 885,201 shares during the last quarter. State Street Corp boosted its stake in Companhia Siderurgica Nacional by 1.2% in the second quarter. State Street Corp now owns 1,636,342 shares of the company’s stock worth $4,008,000 after buying an additional 18,653 shares during the last quarter. Hsbc Holdings PLC boosted its stake in Companhia Siderurgica Nacional by 5.4% in the second quarter. Hsbc Holdings PLC now owns 737,062 shares of the company’s stock worth $1,806,000 after buying an additional 37,942 shares during the last quarter. Finally, Citigroup Inc. boosted its stake in Companhia Siderurgica Nacional by 1.5% in the second quarter. Citigroup Inc. now owns 164,886 shares of the company’s stock worth $404,000 after buying an additional 2,393 shares during the last quarter. 3.52% of the stock is owned by institutional investors and hedge funds.
About Companhia Siderurgica Nacional
Companhia Siderurgica Nacional operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates through five segments: steel, mining, cement, logistics and energy.
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