Ferroglobe (NASDAQ:GSM) Stock Falls 15.3% Following Weak Earnings

Ferroglobe PLC (NASDAQ:GSM)’s stock price fell 15.3% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $3.35 and last traded at $3.27. 1,150,597 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 1,389,597 shares. The stock had previously closed at $3.86.

The basic materials company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.02). Ferroglobe had a negative return on equity of 3.73% and a negative net margin of 2.96%. The business had revenue of $369.76 million for the quarter, compared to analysts’ expectations of $382.80 million.

Ferroglobe Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Tuesday, December 22nd will be paid a $0.0150 dividend. The ex-dividend date of this dividend is Tuesday, December 22nd. This represents a $0.06 annualized dividend and a dividend yield of 1.8%. Ferroglobe’s dividend payout ratio is -27.27%.

Trending Headlines about Ferroglobe

Here are the key news stories impacting Ferroglobe this week:

• Positive Sentiment: Management is targeting a roughly $100 million (±15%) improvement in adjusted EBITDA at full run rate through higher capacity utilization and lower overhead. The plan includes five plant closures and a 20% overhead reduction, which could improve profitability if executed successfully. Ferroglobe plans five plant closures and overhead cuts
• Positive Sentiment: The company announced a quarterly dividend of $0.015 per share, payable December 30, equivalent to $0.06 annually and an indicated yield of about 1.7%.
• Positive Sentiment: Ferroglobe reported $25.9 million in operating cash flow and $5.6 million in free cash flow, helped by a reduction in working capital. It also made initial customer shipments tied to strategic critical-materials initiatives. Third-quarter results and profitability actions
• Neutral Sentiment: Chief Legal Officer and Group Company Secretary Thomas Wiesner is stepping down effective November 4. The announcement did not state a reason or identify an immediate financial impact. Wiesner steps down
• Negative Sentiment: Q3 adjusted EBITDA was negative $2.4 million as higher energy prices reduced EBITDA by nearly $19 million. Revenue of $369.8 million rose 18.6% year over year but fell short of analyst expectations; the reported loss of $0.06 per share also missed consensus. These results likely weigh on sentiment and highlight near-term cost pressures. Q3 loss and revenue miss

Analyst Ratings Changes

Several research analysts have weighed in on GSM shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ferroglobe in a research note on Monday. Wall Street Zen upgraded shares of Ferroglobe from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Ferroglobe has a consensus rating of “Hold” and an average price target of $6.00.

Insider Transactions at Ferroglobe

In related news, insider Cos Muntanola Beatriz Garcia sold 32,292 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $4.30, for a total value of $138,855.60. Following the transaction, the insider directly owned 31,693 shares of the company’s stock, valued at $136,279.90. This trade represents a 50.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 13.07% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ferroglobe

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Donald Smith & CO. Inc. acquired a new stake in shares of Ferroglobe during the second quarter worth $25,843,000. Bastion Asset Management Inc. purchased a new position in Ferroglobe in the 1st quarter valued at $4,155,000. Empowered Funds LLC increased its stake in Ferroglobe by 7.5% in the 1st quarter. Empowered Funds LLC now owns 879,237 shares of the basic materials company’s stock valued at $3,622,000 after buying an additional 61,474 shares during the period. Sei Investments Co. increased its stake in Ferroglobe by 67.0% in the 1st quarter. Sei Investments Co. now owns 639,440 shares of the basic materials company’s stock valued at $2,634,000 after buying an additional 256,449 shares during the period. Finally, Public Employees Retirement System of Ohio increased its stake in Ferroglobe by 10.1% in the 1st quarter. Public Employees Retirement System of Ohio now owns 157,461 shares of the basic materials company’s stock valued at $649,000 after buying an additional 14,422 shares during the period. Hedge funds and other institutional investors own 89.64% of the company’s stock.

Ferroglobe Stock Performance

The company has a market cap of $610.28 million, a PE ratio of -14.93 and a beta of 1.21. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.74 and a current ratio of 1.29. The stock’s 50-day simple moving average is $4.16 and its 200 day simple moving average is $4.22.

About Ferroglobe

Ferroglobe PLC (NASDAQ:GSM) is a global producer of silicon and manganese-based alloys. The company manufactures silicon metal, ferrosilicon, manganese alloys, calcium silicon and other specialty alloy products used in the production of steel, aluminum, silicones, solar materials and other industrial goods.

Ferroglobe also operates quartz resources and produces related raw materials used in its alloy manufacturing processes. Its products support several industries, including automotive, construction, energy, chemicals, electronics and renewable energy.