Insider Buying: Ferroglobe (NASDAQ:GSM) Chairman Acquires $75,118.02 in Stock

Ferroglobe PLC (NASDAQ:GSM) Chairman Madrid Javier Lopez bought 28,671 shares of the business’s stock in a transaction that occurred on Friday, November 6th. The stock was purchased at an average price of $2.62 per share, with a total value of $75,118.02. Following the completion of the purchase, the chairman directly owned 128,399 shares of the company’s stock, valued at $336,405.38. This represents a 28.75% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Ferroglobe Stock Performance

GSM stock traded down $0.05 during midday trading on Friday, hitting $3.00. The stock had a trading volume of 2,320,003 shares, compared to its average volume of 1,733,057. The firm has a market capitalization of $559.89 million, a price-to-earnings ratio of 18.75 and a beta of 1.21. Ferroglobe PLC has a 52 week low of $2.50 and a 52 week high of $5.66. The stock has a 50-day simple moving average of $3.94 and a 200 day simple moving average of $4.13. The company has a current ratio of 1.34, a quick ratio of 0.79 and a debt-to-equity ratio of 0.05.

Ferroglobe (NASDAQ:GSM) last announced its quarterly earnings results on Tuesday, November 3rd. The basic materials company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.02). Ferroglobe had a net margin of 2.13% and a negative return on equity of 5.15%. The business had revenue of $369.76 million during the quarter, compared to the consensus estimate of $382.80 million. As a group, equities research analysts anticipate that Ferroglobe PLC will post -0.05 earnings per share for the current year.

Ferroglobe Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Tuesday, December 22nd will be issued a dividend of $0.0150 per share. This represents a $0.06 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Tuesday, December 22nd. Ferroglobe’s dividend payout ratio (DPR) is presently 37.50%.

Wall Street Analysts Forecast Growth

GSM has been the topic of a number of analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Ferroglobe in a research note on Monday, November 2nd. Jefferies Financial Group set a $5.00 price objective on Ferroglobe in a report on Friday, November 6th. Wall Street Zen raised Ferroglobe from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Finally, Needham & Company LLC set a $5.00 price objective on Ferroglobe in a research note on Friday, November 6th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $5.00.

Ferroglobe News Roundup

Here’s some of the latest news about GSM:

• Positive Sentiment: Four Ferroglobe directors and insiders bought a combined 80,842 shares on November 6 for about $212,000, increasing their reported holdings. Investors may interpret the purchases as a sign of confidence in the company. Insider purchase report
• Neutral Sentiment: The company declared a quarterly dividend of $0.015 per share, equivalent to $0.06 annually. This provides a modest income component but is unlikely to be a major near-term catalyst.
• Negative Sentiment: Ferroglobe’s latest reported quarter showed a loss of $0.06 per share, worse than the $0.04 loss analysts expected; revenue of $369.8 million also missed estimates of $382.8 million. The results underscore continued operating pressure.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in GSM. Donald Smith & CO. Inc. acquired a new stake in shares of Ferroglobe in the 2nd quarter valued at $25,843,000. Royce & Associates LP grew its holdings in shares of Ferroglobe by 45.4% in the 3rd quarter. Royce & Associates LP now owns 2,781,127 shares of the basic materials company’s stock worth $11,055,000 after purchasing an additional 868,193 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Ferroglobe by 2.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,154,691 shares of the basic materials company’s stock worth $4,590,000 after purchasing an additional 22,873 shares during the last quarter. Bastion Asset Management Inc. acquired a new stake in shares of Ferroglobe during the 1st quarter worth about $4,155,000. Finally, Orchard Capital Management LLC increased its position in shares of Ferroglobe by 38.1% during the 3rd quarter. Orchard Capital Management LLC now owns 953,083 shares of the basic materials company’s stock worth $3,789,000 after purchasing an additional 263,083 shares in the last quarter. 89.64% of the stock is owned by institutional investors.

About Ferroglobe

Ferroglobe plc produces silicon metal, silicon-based alloys and manganese-based alloys. Its products are used in industries including aluminum, steel, chemicals and energy. Silicon metal is an important input for aluminum alloys, silicones and polysilicon, while the company’s alloys are used in steelmaking and other metallurgical applications. Ferroglobe serves customers in markets around the world. The company was formed in 2015 through the merger of Globe Specialty Metals and Grupo FerroAtlántica.