We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ArcelorMittal (MT) Enters Into Share Buyback Transactions
Read MoreHide Full Article
ArcelorMittal (MT - Free Report) recently entered into separate, privately-negotiated buyback transactions with a limited number of holders of its 5.50% Mandatorily Convertible Subordinated Notes due 2023.
Per the agreement, ArcelorMittal will repurchase roughly $395 million in the aggregate principal amount of the notes. The total buyback price payable by the company will be subject to the daily volume-weighted average price of its ordinary shares during a price determination period following the execution of the repurchase agreements.
ArcelorMittal expects that holders of the outstanding notes that it is repurchasing may unwind related hedge positions by purchasing ordinary shares of the company during the price determination period.
It is expected that post the repurchases subject to customary conditions, roughly $608 million total principal amount of the notes will remain outstanding. This transaction is another step in the company’s ongoing capital return program.
Citigroup Global Markets Inc. is playing the role of an exclusive agent in relation to the transaction.
Shares of ArcelorMittal have increased 37.3% in the past year compared with a 38.7% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal, in its last earnings call, stated that it expects global apparent steel consumption (“ASC”), excluding China, to increase 12-13% in 2021.
Factoring in softening real demand in China, ArcelorMittal now envisions a modest contraction in apparent steel demand in China in 2021. The company also expects that the impact on ex-China steel markets will be limited as strict production constraints are likely to lead to lower Chinese net exports in the second half of 2021 compared with the first-half levels.
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 49.8% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 17.5% over a year. CC currently carries a Zacks Rank #2 (Buy).
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 123.9% in a year. It currently carries a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ArcelorMittal (MT) Enters Into Share Buyback Transactions
ArcelorMittal (MT - Free Report) recently entered into separate, privately-negotiated buyback transactions with a limited number of holders of its 5.50% Mandatorily Convertible Subordinated Notes due 2023.
Per the agreement, ArcelorMittal will repurchase roughly $395 million in the aggregate principal amount of the notes. The total buyback price payable by the company will be subject to the daily volume-weighted average price of its ordinary shares during a price determination period following the execution of the repurchase agreements.
ArcelorMittal expects that holders of the outstanding notes that it is repurchasing may unwind related hedge positions by purchasing ordinary shares of the company during the price determination period.
It is expected that post the repurchases subject to customary conditions, roughly $608 million total principal amount of the notes will remain outstanding. This transaction is another step in the company’s ongoing capital return program.
Citigroup Global Markets Inc. is playing the role of an exclusive agent in relation to the transaction.
Shares of ArcelorMittal have increased 37.3% in the past year compared with a 38.7% rise of the industry.
ArcelorMittal, in its last earnings call, stated that it expects global apparent steel consumption (“ASC”), excluding China, to increase 12-13% in 2021.
Factoring in softening real demand in China, ArcelorMittal now envisions a modest contraction in apparent steel demand in China in 2021. The company also expects that the impact on ex-China steel markets will be limited as strict production constraints are likely to lead to lower Chinese net exports in the second half of 2021 compared with the first-half levels.
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 49.8% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 17.5% over a year. CC currently carries a Zacks Rank #2 (Buy).
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 123.9% in a year. It currently carries a Zacks Rank #2.