POSCO (NYSE:PKX) Shares Gap Up – Here’s Why

Shares of POSCO (NYSE:PKX) gapped up prior to trading on Monday. The stock had previously closed at $49.67, but opened at $52.79. POSCO shares last traded at $52.8090, with a volume of 26,085 shares traded.

Key POSCO News

Here are the key news stories impacting POSCO this week:

• Positive Sentiment: POSCO reported quarterly revenue of $14.10 billion, exceeding the $13.51 billion consensus estimate. The revenue beat may have supported the stock as it suggests demand and sales remained relatively solid. POSCO earnings report and conference call
• Positive Sentiment: POSCO International reported strong year-over-year third-quarter profit growth, providing a positive contribution to the group’s earnings narrative and helping offset weakness in other subsidiaries. POSCO International third-quarter profit growth
• Positive Sentiment: POSCO Future M reported sharp third-quarter profit growth, potentially improving sentiment around POSCO’s battery-materials businesses, although the subsidiary remains exposed to volatility in electric-vehicle and battery markets. POSCO Future M operating profit growth
• Neutral Sentiment: POSCO DX showed a quarterly recovery, but its nine-month results were weaker, creating a mixed outlook for the group’s technology and industrial-solutions operations. POSCO DX quarterly recovery
• Negative Sentiment: POSCO’s earnings per share came in at $0.59, well below the $1.16 consensus estimate. Return on equity was only 1.99% and net margin was 1.79%, highlighting continued pressure on profitability. POSCO quarterly earnings results
• Negative Sentiment: POSCO Steeleon reported sharply lower profit and an operating loss in separate updates, adding evidence of uneven performance among POSCO affiliates. POSCO Steeleon operating loss

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PKX. Zacks Research cut shares of POSCO from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 29th. Wall Street Zen raised shares of POSCO from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Finally, Weiss Ratings downgraded POSCO from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 9th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold”.

POSCO Stock Up 6.3%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.37 and a current ratio of 1.98. The firm has a market capitalization of $15.98 billion, a PE ratio of 20.00 and a beta of 1.75. The business’s 50 day moving average price is $57.54 and its 200-day moving average price is $61.13.

POSCO (NYSE:PKX) last issued its quarterly earnings results on Monday, November 2nd. The basic materials company reported $0.59 earnings per share for the quarter, missing the consensus estimate of $1.16 by ($0.57). POSCO had a return on equity of 1.99% and a net margin of 1.79%. The company had revenue of $14.10 billion for the quarter, compared to analysts’ expectations of $13.51 billion. As a group, equities research analysts forecast that POSCO will post 4.91 earnings per share for the current year.

Institutional Trading of POSCO

Large investors have recently bought and sold shares of the company. Nykredit A S purchased a new stake in shares of POSCO during the second quarter worth about $13,269,000. Quantinno Capital Management LP grew its holdings in POSCO by 82.7% in the 1st quarter. Quantinno Capital Management LP now owns 200,529 shares of the basic materials company’s stock valued at $11,729,000 after buying an additional 90,777 shares during the period. Bank of America Corp DE lifted its holdings in shares of POSCO by 96.2% during the 1st quarter. Bank of America Corp DE now owns 109,074 shares of the basic materials company’s stock worth $6,380,000 after acquiring an additional 53,469 shares during the period. Corient Private Wealth LP grew its holdings in POSCO by 26.7% in the second quarter. Corient Private Wealth LP now owns 50,761 shares of the basic materials company’s stock valued at $2,608,000 after purchasing an additional 10,699 shares during the period. Finally, Sequoia Financial Advisors LLC raised its stake in POSCO by 28.7% during the second quarter. Sequoia Financial Advisors LLC now owns 48,420 shares of the basic materials company’s stock worth $2,488,000 after purchasing an additional 10,812 shares during the period.

POSCO Company Profile

POSCO is a South Korean steel producer and one of the world’s major integrated steelmakers. The company manufactures a broad range of steel products, including hot- and cold-rolled steel, heavy plate, wire rod, stainless steel, galvanized steel, automotive steel and electrical steel.

POSCO operates large integrated steelworks in Pohang and Gwangyang, South Korea. Its products are used in automobiles, shipbuilding, construction, energy infrastructure, appliances and other industrial applications.