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

Key Points

  • Ferroglobe Chairman Madrid Javier Lopez bought 28,671 shares for about $75,118, increasing his direct stake by 28.75% to 128,399 shares. Four insiders and directors purchased 80,842 shares combined on November 6.
  • Quarterly results fell short of expectations: Ferroglobe reported a loss of $0.06 per share versus the $0.04 loss forecast, and revenue of $369.76 million versus estimates of $382.80 million.
  • Analyst sentiment is mixed, with the stock carrying an average “Reduce” rating and a $5 consensus price target. The company also declared a quarterly dividend of $0.015 per share.

Ferroglobe PLC (NASDAQ:GSM - Get Free Report) Chairman Madrid Javier Lopez bought 28,671 shares of the stock in a transaction dated Friday, November 6th. The shares were bought at an average cost of $2.62 per share, with a total value of $75,118.02. Following the completion of the acquisition, the chairman directly owned 128,399 shares of the company's stock, valued at approximately $336,405.38. The trade was a 28.75% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Ferroglobe Price Performance

Shares of GSM opened at $3.05 on Friday. The stock has a fifty day moving average price of $3.97 and a 200 day moving average price of $4.14. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.79 and a current ratio of 1.34. Ferroglobe PLC has a 12 month low of $2.50 and a 12 month high of $5.66.

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

Ferroglobe Dividend Announcement




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 given a dividend of $0.0150 per share. The ex-dividend date is Tuesday, December 22nd. This represents a $0.06 annualized dividend and a dividend yield of 2.0%. Ferroglobe's dividend payout ratio is currently 37.50%.

Wall Street Analysts Forecast Growth

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

Get Our Latest Stock Report on Ferroglobe

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. The purchases increased each buyer’s reported holdings, which investors may view as a sign of confidence in the company. SEC filing SEC filing SEC filing SEC filing
  • Positive Sentiment: Ferroglobe co-led a $30 million Series B financing for Coreshell Technologies, which is developing batteries using domestic critical materials. The investment could strengthen Ferroglobe’s strategic exposure to battery supply chains and U.S. materials demand, although the article does not specify the size of Ferroglobe’s investment. Coreshell Technologies financing announcement
  • Negative Sentiment: Recent quarterly results were a counterweight: Ferroglobe reported a per-share loss that was worse than analysts expected, while revenue also fell short of consensus, highlighting ongoing operating challenges.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Donald Smith & CO. Inc. bought a new position in shares of Ferroglobe in the second quarter worth $25,843,000. Bastion Asset Management Inc. bought a new stake in shares of Ferroglobe during the first quarter valued at about $4,155,000. Royce & Associates LP raised its stake in shares of Ferroglobe by 45.4% during the third quarter. Royce & Associates LP now owns 2,781,127 shares of the basic materials company's stock valued at $11,055,000 after purchasing an additional 868,193 shares in the last quarter. Sei Investments Co. lifted its holdings in Ferroglobe by 67.0% in the first quarter. Sei Investments Co. now owns 639,440 shares of the basic materials company's stock worth $2,634,000 after purchasing an additional 256,449 shares during the period. Finally, Boston Partners lifted its holdings in Ferroglobe by 47.5% in the third quarter. Boston Partners now owns 600,901 shares of the basic materials company's stock worth $2,389,000 after purchasing an additional 193,497 shares during the period. Institutional investors and hedge funds own 89.64% of the company's stock.

Ferroglobe Company Profile

(Get Free Report)

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.

Further Reading

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