GSM Stock Hits 52-Week Low at $3.71 Amid Market Challenges

Published 30/12/2024, 15:32
GSM Stock Hits 52-Week Low at $3.71 Amid Market Challenges
GSM
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In a challenging market environment, Globe Specialty Metals (GSM) stock has touched a 52-week low, with shares plummeting to $3.71. Despite the downturn, the company maintains a GREAT financial health score, with analyst price targets ranging from $7 to $11. The significant downturn reflects a broader trend for the company, which has seen its stock value erode by 41.94% over the past year. Investors are closely monitoring GSM as it navigates through the pressures that have led to this notable decline, seeking signs of a potential turnaround or further indicators of market headwinds that could impact the stock’s performance in the upcoming quarters. According to InvestingPro analysis, the stock appears undervalued, with a strong free cash flow yield of 22% suggesting potential value opportunity.

In other recent news, Ferroglobe (NASDAQ:GSM) PLC reported steady EBITDA in the face of market challenges during their Third Quarter 2024 Conference Call. CEO Marco Levi announced an adjusted EBITDA of $60 million, which is a slight increase from the previous quarter’s $58 million, primarily due to improved manganese alloy prices and reduced energy costs. Despite a cautious outlook for the upcoming quarter due to subdued market demand and softening prices, Ferroglobe reaffirmed its full-year guidance.

The company anticipates improved volumes and prices for ferrosilicon in the U.S. market following recent trade actions. In addition, Ferroglobe is advancing a brownfield expansion in the U.S. and has initiated shareholder-friendly actions, including a dividend payment and a stock buyback program.

However, the company experienced a 4% decrease in sales to $434 million in Q3, with volume declines across all segments. Despite this, stronger pricing contributed to the improved adjusted EBITDA. The company’s full-year 2024 guidance remains at $150 million to $170 million for adjusted EBITDA. These are among the recent developments for Ferroglobe.

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