Ferroglobe (NASDAQ:GSM) Shares Climb 5.1% – Should You Buy?

Ferroglobe PLC (NASDAQ:GSM) shot up 5.1% during trading on Tuesday. The stock traded as high as $2.81 and last traded at $2.7650. Approximately 894,922 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 1,421,091 shares. The stock had previously closed at $2.63.

Recent Ferroglobe Headlines

Here are a few of the latest headlines about GSM:

• Positive Sentiment: Four Ferroglobe directors and executives reported purchases totaling about 80,842 shares for approximately $212,000 on Nov. 6. The buying increased each disclosed holder’s stake and may signal confidence in the company. Silvia Villar-Mir filing Javier Lopez filing Bruce Crockett filing David Girardeau filing
• Positive Sentiment: Ferroglobe co-led a $30 million Series B for Coreshell Technologies, which is working to commercialize batteries using domestic critical materials. The investment could give Ferroglobe strategic exposure to battery-related demand; the company’s individual contribution was not specified. Coreshell Technologies financing announcement
• Neutral Sentiment: Reported short interest was zero as of Nov. 10. That suggests little reported short positioning, but offers limited direct evidence of a new fundamental catalyst.

Wall Street Analyst Weigh In

GSM has been the subject of a number of recent research reports. Needham & Company LLC set a $5.00 price objective on Ferroglobe in a research note on Friday, November 6th. Jefferies Financial Group set a $5.00 target price on shares of Ferroglobe in a research note on Friday, November 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ferroglobe in a report on Monday, November 2nd. Finally, Wall Street Zen upgraded shares of Ferroglobe from a “hold” rating to a “buy” rating in a research report on Saturday, October 10th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $5.00.

Ferroglobe Stock Performance

The stock has a market cap of $573.87 million, a P/E ratio of 19.22 and a beta of 1.21. The company has a quick ratio of 0.79, a current ratio of 1.34 and a debt-to-equity ratio of 0.05. The business has a 50 day moving average price of $4.00 and a two-hundred day moving average price of $4.15.

Ferroglobe (NASDAQ:GSM) last issued its earnings results on Tuesday, November 3rd. The basic materials company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.02). Ferroglobe had a net margin of 2.13% and a negative return on equity of 5.15%. The business had revenue of $369.76 million for the quarter, compared to the consensus estimate of $382.80 million. On average, sell-side analysts forecast that Ferroglobe PLC will post -0.05 earnings per share for the current fiscal year.

Ferroglobe Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Tuesday, December 22nd will be given a dividend of $0.0150 per share. The ex-dividend date is Tuesday, December 22nd. This represents a $0.06 annualized dividend and a dividend yield of 2.0%. Ferroglobe’s dividend payout ratio (DPR) is presently 37.50%.

Insider Activity at Ferroglobe

In related news, insider Cos Muntanola Beatriz Garcia sold 32,292 shares of the company’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $4.30, for a total transaction of $138,855.60. Following the completion of the transaction, the insider owned 31,693 shares in the company, valued at approximately $136,279.90. This represents a 50.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director De Fuentes Silvia Villar-Mir bought 28,671 shares of the company’s stock in a transaction that occurred on Friday, November 6th. The shares were bought at an average price of $2.62 per share, with a total value of $75,118.02. Following the transaction, the director owned 128,399 shares of the company’s stock, valued at $336,405.38. The trade was a 28.75% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 80,842 shares of company stock worth $212,206 over the last ninety days. 13.07% of the stock is owned by corporate insiders.

Institutional Trading of Ferroglobe

Hedge funds have recently bought and sold shares of the stock. PDT Partners LLC purchased a new stake in shares of Ferroglobe in the second quarter worth about $44,000. StoneX Group Inc. purchased a new stake in Ferroglobe during the third quarter valued at $48,000. Abel Hall LLC purchased a new stake in Ferroglobe during the third quarter valued at $61,000. Covestor Ltd raised its stake in Ferroglobe by 28.4% during the third quarter. Covestor Ltd now owns 22,418 shares of the basic materials company’s stock valued at $89,000 after purchasing an additional 4,952 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in Ferroglobe during the first quarter valued at $124,000. Hedge funds and other institutional investors own 89.64% of the company’s stock.

About Ferroglobe

Ferroglobe plc produces silicon metal, silicon-based alloys and manganese-based alloys. Its products are used in industries including aluminum, steel, chemicals and energy. Silicon metal is an important input for aluminum alloys, silicones and polysilicon, while the company’s alloys are used in steelmaking and other metallurgical applications. Ferroglobe serves customers in markets around the world. The company was formed in 2015 through the merger of Globe Specialty Metals and Grupo FerroAtlántica.