Algoma Steel Group (NASDAQ:ASTL) Shares Up 16% – Still a Buy?

Algoma Steel Group Inc. (NASDAQ:ASTL)’s stock price shot up 16% during mid-day trading on Wednesday . The company traded as high as $4.71 and last traded at $4.7450. Approximately 2,060,259 shares were traded during mid-day trading, an increase of 59% from the average daily volume of 1,292,693 shares. The stock had previously closed at $4.09.

Analysts Set New Price Targets

Several research firms have commented on ASTL. Royal Bank Of Canada reissued a “sector perform” rating on shares of Algoma Steel Group in a research report on Thursday, May 14th. Zacks Research raised Algoma Steel Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, June 9th. Wall Street Zen upgraded Algoma Steel Group from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 1st. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Algoma Steel Group in a report on Wednesday, June 24th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Reduce”.

Algoma Steel Group Trading Up 3.9%

The company has a current ratio of 2.49, a quick ratio of 1.35 and a debt-to-equity ratio of 2.85. The company’s fifty day moving average is $4.15 and its 200-day moving average is $4.47. The firm has a market capitalization of $500.83 million, a P/E ratio of -0.64 and a beta of 1.64.

Algoma Steel Group (NASDAQ:ASTL) last posted its earnings results on Wednesday, July 29th. The company reported ($0.64) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.60) by ($0.04). The firm had revenue of $267.50 million during the quarter, compared to analyst estimates of $205.57 million. Algoma Steel Group had a negative net margin of 71.60% and a negative return on equity of 110.49%. As a group, sell-side analysts anticipate that Algoma Steel Group Inc. will post -2.37 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Algoma Steel Group

Several hedge funds and other institutional investors have recently made changes to their positions in ASTL. Maple Rock Capital Partners Inc. lifted its position in shares of Algoma Steel Group by 38.3% during the 4th quarter. Maple Rock Capital Partners Inc. now owns 14,430,818 shares of the company’s stock worth $59,166,000 after purchasing an additional 4,000,000 shares during the last quarter. MMCAP International Inc. SPC grew its holdings in Algoma Steel Group by 42.2% in the 4th quarter. MMCAP International Inc. SPC now owns 11,487,861 shares of the company’s stock valued at $47,111,000 after buying an additional 3,409,033 shares during the last quarter. Donald Smith & CO. Inc. bought a new position in Algoma Steel Group in the 2nd quarter worth approximately $21,374,000. BlackRock Inc. bought a new position in Algoma Steel Group in the 2nd quarter worth approximately $16,780,000. Finally, Littlejohn & Co. LLC lifted its holdings in shares of Algoma Steel Group by 27.9% during the fourth quarter. Littlejohn & Co. LLC now owns 3,446,503 shares of the company’s stock worth $14,131,000 after buying an additional 752,616 shares during the last quarter. 72.00% of the stock is 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.