ArcelorMittal (NYSE:MT) Shares Gap Up Following Dividend Announcement

ArcelorMittal (NYSE:MT) gapped up prior to trading on Wednesday following a dividend announcement from the company. The stock had previously closed at $63.09, but opened at $66.74. ArcelorMittal shares last traded at $64.9440, with a volume of 527,881 shares changing hands.

The newly announced dividend which will be paid on Wednesday, March 18th. Shareholders of record on Friday, February 20th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, February 20th. This represents a $0.60 dividend on an annualized basis and a yield of 1.0%. ArcelorMittal’s payout ratio is 11.46%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on MT. Santander raised ArcelorMittal from a “neutral” rating to an “outperform” rating in a report on Thursday, February 5th. JPMorgan Chase & Co. raised ArcelorMittal from a “neutral” rating to an “overweight” rating in a research report on Friday, November 7th. Wells Fargo & Company upped their price target on ArcelorMittal from $47.00 to $54.00 and gave the stock an “equal weight” rating in a report on Friday, February 6th. Oddo Bhf raised ArcelorMittal from a “neutral” rating to an “outperform” rating in a research report on Wednesday, January 14th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of ArcelorMittal in a research note on Friday, February 6th. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, ArcelorMittal has an average rating of “Moderate Buy” and a consensus price target of $51.98.

ArcelorMittal Stock Performance

The firm has a market cap of $47.68 billion, a PE ratio of 15.01, a PEG ratio of 0.58 and a beta of 1.52. The company has a quick ratio of 0.53, a current ratio of 1.36 and a debt-to-equity ratio of 0.19. The company has a 50-day simple moving average of $49.99 and a two-hundred day simple moving average of $41.34.

ArcelorMittal (NYSE:MT) last announced its earnings results on Thursday, February 5th. The basic materials company reported $0.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.30. The firm had revenue of $14.97 billion during the quarter, compared to analyst estimates of $15.56 billion. ArcelorMittal had a return on equity of 5.27% and a net margin of 5.14%.The business’s revenue was up 1.7% compared to the same quarter last year. During the same period last year, the firm posted $0.52 EPS. As a group, equities research analysts forecast that ArcelorMittal will post 3.72 earnings per share for the current year.

ArcelorMittal News Roundup

Here are the key news stories impacting ArcelorMittal this week:

• Positive Sentiment: Several broker upgrades and buy calls have supported sentiment — Jefferies upgraded MT to Buy on a stronger steel outlook. Jefferies upgrade
• Positive Sentiment: J.P. Morgan also initiated/maintained a Buy, reinforcing analyst conviction in the recovery and earnings momentum. J.P. Morgan buy
• Positive Sentiment: Deutsche Bank kept a Buy rating, adding to the cluster of bullish analyst views that helped push MT to recent highs. Deutsche Bank buy
• Positive Sentiment: Company actions and strategy: ArcelorMittal announced a quarterly dividend (0.15 per share; ~0.9% yield; record Feb 20, pay Mar 18), which supports income-focused holders and signals cash-return discipline.
• Positive Sentiment: Operational/ESG progress: MT plans an electric-arc furnace (EAF) in Dunkirk to cut CO2 emissions, a strategic capex move helped by French funding that improves medium-term competitiveness and aligns with tightening EU rules. Dunkirk EAF
• Positive Sentiment: Analyst commentary continues to highlight MT as a growth/turnaround candidate, with pieces noting improving fundamentals and Zacks calling MT a strong growth stock. Zacks growth thesis
• Neutral Sentiment: Not all shops are bullish — Barclays maintained a Hold rating, which tempers the uniformity of the positive analyst narrative. Barclays hold
• Negative Sentiment: Key near-term negative: A Yahoo Finance piece flagged potential “profit quality” issues in recent results — investors interpreted this as a reason to sell into the rally, despite EPS beats, because revenue misses and one-off items can undermine confidence in sustainability of profits. This appears to be the main driver of today’s weakness. Profit quality concerns

Institutional Investors Weigh In On ArcelorMittal

Several large investors have recently modified their holdings of the stock. TD Waterhouse Canada Inc. lifted its stake in ArcelorMittal by 11.2% in the fourth quarter. TD Waterhouse Canada Inc. now owns 2,141 shares of the basic materials company’s stock valued at $98,000 after purchasing an additional 216 shares during the last quarter. True Wealth Design LLC increased its position in ArcelorMittal by 41.4% in the fourth quarter. True Wealth Design LLC now owns 799 shares of the basic materials company’s stock worth $36,000 after buying an additional 234 shares during the last quarter. Merit Financial Group LLC raised its stake in shares of ArcelorMittal by 3.1% in the third quarter. Merit Financial Group LLC now owns 9,453 shares of the basic materials company’s stock valued at $342,000 after buying an additional 283 shares during the period. GK Wealth Management LLC raised its stake in shares of ArcelorMittal by 4.1% in the third quarter. GK Wealth Management LLC now owns 7,129 shares of the basic materials company’s stock valued at $258,000 after buying an additional 284 shares during the period. Finally, Janney Montgomery Scott LLC lifted its position in shares of ArcelorMittal by 4.5% during the 2nd quarter. Janney Montgomery Scott LLC now owns 7,359 shares of the basic materials company’s stock valued at $232,000 after buying an additional 318 shares during the last quarter. Hedge funds and other institutional investors own 9.29% of the company’s stock.

ArcelorMittal Company Profile

ArcelorMittal is a multinational steel manufacturing company formed in 2006 through the merger of Arcelor and Mittal Steel. Headquartered in Luxembourg, the company is one of the world’s largest producers of steel and operates an integrated value chain that spans raw material extraction, steelmaking, processing and distribution. Its product portfolio includes flat and long carbon steel products, coated and specialty steels, tubular products and value-added solutions tailored for sectors such as automotive, construction, household appliances, energy and packaging.

ArcelorMittal’s operations are global in scope, with production facilities, distribution networks and commercial activities across Europe, the Americas, Asia, Africa and the Commonwealth of Independent States.