Sandvik (OTCMKTS:SDVKY) Shares Gap Down – Should You Sell?

Sandvik AB (OTCMKTS:SDVKY) gapped down prior to trading on Friday . The stock had previously closed at $43.99, but opened at $40.17. Sandvik shares last traded at $40.32, with a volume of 1,344 shares trading hands.

Analyst Ratings Changes

Several research firms have weighed in on SDVKY. Morgan Stanley lowered Sandvik from an “overweight” rating to an “equal weight” rating in a research report on Thursday, March 12th. Zacks Research raised Sandvik from a “hold” rating to a “strong-buy” rating in a research report on Monday, April 27th. Jefferies Financial Group lowered Sandvik from a “strong-buy” rating to a “hold” rating in a research report on Sunday, January 25th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Sandvik in a research report on Thursday, April 23rd. Finally, Nordea Equity Research raised Sandvik to a “hold” rating in a research report on Wednesday, April 15th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy”.

Sandvik Price Performance

The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.02 and a current ratio of 1.94. The firm has a market capitalization of $50.16 billion, a price-to-earnings ratio of 31.49, a price-to-earnings-growth ratio of 1.50 and a beta of 1.53. The business has a fifty day moving average of $40.77 and a two-hundred day moving average of $36.43.

Sandvik (OTCMKTS:SDVKY) last posted its earnings results on Wednesday, April 22nd. The industrial products company reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.04. The business had revenue of $3.34 billion for the quarter, compared to analyst estimates of $3.43 billion. Sandvik had a return on equity of 17.64% and a net margin of 12.16%. As a group, research analysts predict that Sandvik AB will post 1.76 EPS for the current fiscal year.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Sandvik stock. GAMMA Investing LLC raised its stake in Sandvik AB (OTCMKTS:SDVKY) by 17.5% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 8,704 shares of the industrial products company’s stock after acquiring an additional 1,298 shares during the quarter. GAMMA Investing LLC’s holdings in Sandvik were worth $281,000 at the end of the most recent reporting period. 0.74% of the stock is currently owned by institutional investors and hedge funds.

About Sandvik

Sandvik (OTCMKTS: SDVKY) is a global engineering group headquartered in Sandviken, Sweden, with roots dating back to 1862 when it was founded by Göran Fredrik Göransson. The company designs, manufactures and services advanced products and solutions for the mining and construction industries, metalworking and material technology markets. Sandvik serves customers worldwide with a broad portfolio of industrial products, equipment and aftermarket services.

Sandvik’s core activities span three broad areas: metal-cutting and machining solutions, mining and rock excavation equipment, and specialty materials and components.