POSCO (PKX) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of POSCO (NYSE:PKX) from a buy rating to a hold rating in a report issued on Wednesday.
According to Zacks, “In the last three months, POSCO's American Depository Receipts (ADR) outperformed the industry. Over the long term, we believe the company stands to benefit from its regional diversifications, superior product portfolio and initiatives to dispose non-core assets. On a consolidated basis, the company aims to generate revenues of approximately KRW 59.3 trillion in 2017, higher than KRW 54.8 trillion expected earlier. Finished product sales are estimated to be roughly 35.1 million tons while crude steel production is projected to be nearly 37 million tons. Also, the company plans to spend KRW 3.5 trillion for strengthening its businesses. However, the company is exposed to risks from higher costs and expenses, industry rivalry, huge debt level, geopolitical issues and foreign currency fluctuations. Over the last 60 days, earnings estimates on the stock remained stable for 2017 and 2018.”
Other analysts have also issued reports about the company. UBS AG raised POSCO from a neutral rating to a buy rating in a research note on Thursday, July 6th. BidaskClub lowered POSCO from a strong-buy rating to a buy rating in a research note on Saturday, August 12th. Standpoint Research lowered POSCO from a buy rating to a hold rating in a research note on Monday, August 7th. Finally, CLSA raised POSCO from an underperform rating to an outperform rating in a research note on Thursday, July 20th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating to the stock. POSCO presently has an average rating of Buy and a consensus price target of $64.00.
POSCO (PKX) traded down 2.22% on Wednesday, hitting $68.24. The company had a trading volume of 282,671 shares. The firm has a market capitalization of $21.84 billion, a PE ratio of 12.13 and a beta of 1.12. POSCO has a 12-month low of $49.37 and a 12-month high of $77.76. The firm has a 50-day moving average price of $73.53 and a 200-day moving average price of $65.36.
A number of institutional investors have recently bought and sold shares of PKX. LMR Partners LLP raised its position in POSCO by 516.2% in the first quarter. LMR Partners LLP now owns 247,038 shares of the basic materials company’s stock valued at $16,069,000 after purchasing an additional 206,949 shares during the last quarter. UBS Group AG raised its position in POSCO by 625.5% in the first quarter. UBS Group AG now owns 237,276 shares of the basic materials company’s stock valued at $15,304,000 after purchasing an additional 204,571 shares during the last quarter. Athos Capital Ltd bought a new position in POSCO in the second quarter valued at about $8,463,000. Dimensional Fund Advisors LP raised its position in POSCO by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 3,092,632 shares of the basic materials company’s stock valued at $199,437,000 after purchasing an additional 112,528 shares during the last quarter. Finally, Jane Street Group LLC raised its position in POSCO by 1,544.3% in the first quarter. Jane Street Group LLC now owns 102,853 shares of the basic materials company’s stock valued at $6,634,000 after purchasing an additional 96,598 shares during the last quarter. Hedge funds and other institutional investors own 5.14% of the company’s stock.
POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas.
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