Sandvik (OTCMKTS:SDVKY) Shares Gap Down – Here’s Why

Sandvik AB (OTCMKTS:SDVKY) gapped down before the market opened on Monday . The stock had previously closed at $40.38, but opened at $38.25. Sandvik shares last traded at $38.44, with a volume of 31,399 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on SDVKY shares. Citigroup reiterated a “buy” rating on shares of Sandvik in a report on Monday, January 12th. Jefferies Financial Group downgraded Sandvik from a “strong-buy” rating to a “hold” rating in a report on Sunday, January 25th. Barclays reiterated an “overweight” rating on shares of Sandvik in a research note on Wednesday, February 25th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Sandvik in a research report on Monday, December 8th. Finally, Zacks Research cut shares of Sandvik from a “strong-buy” rating to a “hold” rating in a report on Monday, February 16th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy”.

Sandvik Price Performance

The firm has a market capitalization of $49.07 billion, a PE ratio of 32.33, a P/E/G ratio of 1.73 and a beta of 1.48. The company has a current ratio of 1.94, a quick ratio of 1.02 and a debt-to-equity ratio of 0.38. The company has a fifty day moving average price of $38.81 and a two-hundred day moving average price of $32.48.

Sandvik (OTCMKTS:SDVKY) last released its quarterly earnings results on Tuesday, January 27th. The industrial products company reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.01). The firm had revenue of $3.64 billion for the quarter, compared to analysts’ expectations of $3.38 billion. Sandvik had a return on equity of 16.94% and a net margin of 12.16%. Sell-side analysts forecast that Sandvik AB will post 1.27 earnings per share for the current year.

Hedge Funds Weigh In On Sandvik

A hedge fund recently raised its stake in Sandvik stock. GAMMA Investing LLC boosted its holdings in Sandvik AB (OTCMKTS:SDVKY) by 24.8% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,406 shares of the industrial products company’s stock after purchasing an additional 1,473 shares during the quarter. GAMMA Investing LLC’s holdings in Sandvik were worth $208,000 at the end of the most recent quarter. 0.74% of the stock is currently owned by institutional investors and hedge funds.

About Sandvik

Sandvik (OTCMKTS: SDVKY) is a global engineering group headquartered in Sandviken, Sweden, with roots dating back to 1862 when it was founded by Göran Fredrik Göransson. The company designs, manufactures and services advanced products and solutions for the mining and construction industries, metalworking and material technology markets. Sandvik serves customers worldwide with a broad portfolio of industrial products, equipment and aftermarket services.

Sandvik’s core activities span three broad areas: metal-cutting and machining solutions, mining and rock excavation equipment, and specialty materials and components.