On Thursday, analysts at StockNews.com issued a research report on Schnitzer Steel Industries (NASDAQ:SCHN) to clients and investors. The basic materials company’s stock was assigned a “hold” rating by the firm. SCHN stock opened the day at $28.96 and has a market cap of $794.95 million, with a PE ratio of 12.12 and a beta of 1.53.
Schnitzer Steel Industries is primarily engaged in recycling ferrous and nonferrous scrap metal while also manufacturing finished steel products. The company operates with two segments, the Auto and Metals Recycling segment as well as the Cascade Steel and Scrap segment.
The Auto and Metals Recycling sector acquires both ferrous and nonferrous scrap metal that is available for sale to foreign and domestic brokers, producers, as well as processors in addition to recycling such metals for their own use. They also purchase salvaged vehicles that are obtained from auctions or private sources which they wholly recycle by removing recyclable parts that can be repurposed before disposing of such vehicles.
In related news, SVP Michael R. Henderson sold 1,691 shares of Schnitzer Steel Industries’ stock at an average price of $27.44 on Thursday May 4th, resulting in a total value of $46,401.04. The senior vice president now owns 132,769 shares in the company valued at approximately $3,643,181.36 directly following this transaction.
Another insider sale took place on Wednesday May 3rd when CFO Stefano R Gaggini sold 1,026 shares at an average price of $28.43 resulting in a total value of $29,169.18; they have direct ownership over 62,374 shares currently worth approximately $1,773,292.
Corporate insiders have recently sold a total of 2-874 shares with an estimated worth around $80K, therefore insiders collectively own 6.10% of the company’s stock.
It will be interesting to see how Schnitzer Steel Industries fares in the coming trading sessions following the release of this report by StockNews.com. Investors are anxious to see if there will be an upswing in their fortunes or if they will continue on a static trajectory.
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Schnitzer Steel Industries’ Mixed Quarterly Earnings Report Raises Concerns but Investors Remain Confident
Schnitzer Steel Industries (NASDAQ:SCHN) is a prominent name in the realm of basic materials. It recently released its quarterly earnings data on April 5th, alarming investors and financial analysts at the same time with mixed results. The company reported $0.14 earnings per share (EPS), which was lower than the consensus estimate of $0.19 by ($0.05). This sudden dip may have raised concerns for shareholders, but that doesn’t mean analysts are cutting their ties with Schnitzer Steel Industries just yet.
Despite missing the consensus estimate by a hair’s breadth, Schnitzer Steel Industries’ net margin of 2.20% and return on equity of 8.76% are still noteworthy achievements for the quarter under consideration. Also, its revenue of $756 million exceeded analyst estimations by a significant margin compared to $722.55 million. Although this seems like good news, trailing comparison hints towards a decline in quarterly revenue compared to the same period last year as it went down by 3.5%.
It is reassuring to see many major investors still holding onto their stake in Schnitzer Steel Industries despite these recent developments and seemingly uncertainty in basic-material businesses worldwide caused by the pandemic outbreak last year’s economic downturns.
Brinker Capital Investments LLC raised its holdings with an additional 311 shares during the first quarter and now owns 19,665 shares worth $1,021,000 of SCHN stock; Public Employees Retirement System of Ohio added 320 more shares worth an estimated value of $1,298,000 during Q3; PNC Financial Services Group Inc.’s increased stake in Schnitzer Steel Industries by 7.5% since Q4 last year that is currently valued at over $144k marks a sign of confidence witnessed within leadership circles; Legal & General Group Plc purchased another (391) additional shares worth around $390k within Q2 alone; Finally, Tower Research Capital LLC added an additional 469 shares worth $26,000 in the first quarter of this year bringing their total holding value of Schnitzer Steel Industries’ stock to $24.05 million.
These numbers paint a picture of overwhelming confidence across multiple investors who believe that despite the dip in quarterly revenue, Schnitzer Steel Industries could still play a pivotal role in their portfolios. The basic material company has been making considerable headway within the industry and proved that they have resilience needed to survive economic downturns. It is no wonder why hedge funds and other institutional investors control more than 80% of SCHN stocks; undoubtedly, their faith would positively impact shareholder’s confidence in this giant stock market player. Therefore, investors must keep an eye on its performance throughout the fiscal year; Schnitzer Steel Industries may come out stronger than ever before at year-end.
