Zacks Investment Research Downgrades AK Steel (AKS) to Hold

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

AKS has been the topic of several other research reports. Credit Suisse Group upgraded shares of AK Steel from a “neutral” rating to an “outperform” rating and upped their price objective for the stock from $6.00 to $7.00 in a report on Tuesday, November 21st. Jefferies Group restated a “buy” rating on shares of AK Steel in a report on Friday, November 10th. BMO Capital Markets lowered their price objective on shares of AK Steel from $7.00 to $5.00 and set a “market perform” rating on the stock in a report on Wednesday, November 1st. JPMorgan Chase & Co. upgraded shares of AK Steel from a “neutral” rating to an “overweight” rating and increased their target price for the company from $6.00 to $7.00 in a report on Thursday, December 7th. Finally, Clarkson Capital downgraded shares of AK Steel from a “buy” rating to a “neutral” rating in a report on Wednesday, November 1st. Nine equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $7.54.

AK Steel (NYSE:AKS) opened at $6.55 on Wednesday. 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 1-year low of $4.00 and a 1-year high of $10.26. The firm has a market cap of $2,060.00, a price-to-earnings ratio of 43.67, a price-to-earnings-growth ratio of 1.53 and a beta of 2.90.

AK Steel (NYSE:AKS) last released its quarterly earnings data on Tuesday, October 31st. The basic materials company reported $0.02 earnings per share for the quarter, missing the Thomson Reuters’ 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 forecast that AK Steel will post 0.26 EPS for the current year.

Several hedge funds have recently made changes to their positions in AKS. Crow Point Partners LLC purchased a new stake in shares of AK Steel in the fourth quarter valued at about $110,000. Riverhead Capital Management LLC raised its holdings in shares of AK Steel by 74.4% in the second quarter. Riverhead Capital Management LLC now owns 17,616 shares of the basic materials company’s stock valued at $116,000 after purchasing an additional 7,516 shares during the last quarter. MML Investors Services LLC purchased a new stake in shares of AK Steel in the second quarter valued at about $141,000. Raymond James Financial Services Advisors Inc. grew its position in AK Steel by 0.9% during the second quarter. Raymond James Financial Services Advisors Inc. now owns 21,887 shares of the basic materials company’s stock valued at $144,000 after buying an additional 193 shares during the period. Finally, IPG Investment Advisors LLC bought a new position in AK Steel during the third quarter valued at about $145,000. Institutional investors own 65.25% of the company’s stock.

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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.

Analyst Recommendations for AK Steel (NYSE:AKS)

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