AK Steel (AKS) Lowered to Hold at Zacks Investment Research

AK Steel (NYSE:AKS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.

According to Zacks, “AK Steel should benefit from the strength in the automotive market and the Precision Partners acquisition. The company’s sustained initiatives to manage costs should also support its bottom line. The acquisition of the Severstal Dearborn plant is expected to boost AK Steel’s future earnings and improve its credit profile and liquidity. The buyout has provided the company an access to highly modernized and upgraded steelmaking equipment and facilities. However, AK Steel faces weakness in electrical steel pricing due to global overcapacity. It is also exposed to a volatile raw material pricing environment. The U.S. steel industry is also not out of the woods yet. AK Steel has also underperformed the industry it belongs to over the past six months.”

A number of other equities analysts also recently commented on the stock. Jefferies Group downgraded shares of AK Steel from a “buy” rating to a “hold” rating and cut their price objective for the stock from $6.64 to $6.50 in a research report on Tuesday, January 9th. Cowen restated a “hold” rating and set a $7.00 price objective on shares of AK Steel in a research report on Thursday, January 4th. Longbow Research upgraded shares of AK Steel from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $5.53 to $7.00 in a research report on Wednesday, December 20th. JPMorgan Chase & Co. upgraded shares of AK Steel from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $6.00 to $7.00 in a research report on Thursday, December 7th. Finally, upgraded shares of AK Steel from a “neutral” rating to an “outperform” rating in a research report on Tuesday, November 21st. Nine research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $7.54.

Shares of AK Steel (AKS) traded up $0.29 during trading on Wednesday, reaching $6.65. 28,115,275 shares of the company’s stock were exchanged, compared to its average volume of 16,850,000. The stock has a market cap of $2,090.00, a P/E ratio of 44.33, a P/E/G ratio of 1.48 and a beta of 2.90. The company has a debt-to-equity ratio of 11.89, a quick ratio of 0.75 and a current ratio of 1.92. AK Steel has a 52 week low of $4.00 and a 52 week high of $10.26.

AK Steel (NYSE:AKS) last announced its quarterly earnings data on Tuesday, October 31st. The basic materials company reported $0.02 EPS for the quarter, missing the Zacks’ consensus estimate of $0.03 by ($0.01). AK Steel had a return on equity of 140.37% and a net margin of 0.92%. equities analysts anticipate that AK Steel will post 0.26 EPS for the current year.

Several large investors have recently bought and sold shares of AKS. Crow Point Partners LLC acquired a new position in shares of AK Steel during the 4th quarter worth $110,000. Riverhead Capital Management LLC grew its stake in shares of AK Steel by 74.4% during the 2nd quarter. Riverhead Capital Management LLC now owns 17,616 shares of the basic materials company’s stock worth $116,000 after purchasing an additional 7,516 shares during the period. MML Investors Services LLC acquired a new position in shares of AK Steel during the 2nd quarter worth $141,000. Raymond James Financial Services Advisors Inc. grew its stake in shares of AK Steel by 0.9% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 21,887 shares of the basic materials company’s stock worth $144,000 after purchasing an additional 193 shares during the period. Finally, IPG Investment Advisors LLC acquired a new position in shares of AK Steel during the 3rd quarter worth $145,000. 65.25% of the stock is currently owned by institutional investors and hedge funds.

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AK Steel Company Profile

AK Steel Holding Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products through its subsidiary, AK Steel Corporation (AK Steel). The Company also operates blast furnaces and electric arc furnaces. As of December 31, 2016, its operations included eight steelmaking and finishing plants, two coke plants and two tube manufacturing plants across states, including Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia, and a tube manufacturing plant in Mexico.

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