Bullish indicating open at $55-$60, IPO prices at $37
PITTSBURGH - United States Steel Corporation (NYSE: X), with a market capitalization of $9.2 billion, is actively campaigning for its shareholders to back its current board of directors in the face of a proxy contest initiated by Ancora Holdings Group. The steelmaking giant, currently trading near its 52-week high of $43.35, is urging stockholders to vote for its nominated directors using the WHITE proxy card and to disregard any gold proxy cards from Ancora.
U.S. Steel’s board has emphasized its successful transformation of the company into a modern, innovative producer, highlighting the strategic shift to electric arc furnaces and the divestiture of non-core assets. This transformation, according to the board, has delivered superior financial performance and returns compared to peers, reflected in the company’s impressive 20.49% year-to-date return and strong five-year performance. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, though it faces challenges with relatively weak gross profit margins of 10.4%.
The board also pointed to a strategic review process that led to a proposed transaction with Nippon Steel Corp., offering a 142% premium at $55 per share. This transaction, they argue, promises a brighter future for both U.S. Steel and the American steel industry. For deeper insights into U.S. Steel’s valuation and comprehensive analysis, investors can access detailed Pro Research Reports available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In contrast, U.S. Steel is framing Ancora’s plan as "questionable" and its nominees as "unqualified," suggesting that Ancora’s approach could limit options for value maximization. The board has accused Ancora of not working in the best interests of all U.S. Steel stockholders.
The company’s annual meeting is set for May 6, 2025, and stockholders of record as of March 10, 2025, are eligible to vote. U.S. Steel has also launched VoteforUSSFuture.com to provide stockholders with more information about its strategy and board nominees.
This pushback against Ancora comes as part of a broader narrative of U.S. Steel’s efforts to navigate a competitive industry while maximizing shareholder value. The outcome of this proxy contest could have significant implications for the company’s direction and control. The information presented is based on a press release statement from U.S. Steel.
In other recent news, United States Steel Corporation has announced its financial guidance for the first quarter of 2025, projecting an adjusted EBITDA of approximately $125 million. The company expects adjusted net earnings per diluted share to range between a loss of $0.53 and $0.49. CEO David B. Burritt highlighted the stability in the North American Flat-Rolled segment, while the Mini Mill segment is anticipated to show improvement due to increased volumes from Big River Steel. Meanwhile, Nippon Steel remains determined to pursue a transaction with U.S. Steel despite political challenges, with ongoing discussions between the companies and U.S. authorities. Ancora Holdings Group has urged U.S. Steel to delay its 2025 Annual Meeting, seeking more transparency about the blocked merger with Nippon Steel. Additionally, U.S. Steel has agreed to a motion by the Department of Justice to extend deadlines in the litigation concerning the blocked merger. This legal delay follows President Biden’s prohibition of the merger on national security grounds. Lastly, President Trump has announced a 25% tariff increase on Canadian imports, impacting U.S.-based steel and aluminum companies, including U.S. Steel, which saw a rise in its shares.
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