Is United States Steel Corporation (X) Becoming More Panic-Prone?

Undoubtedly, United States Steel Corporation (NYSE:X) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to decline heading into short-terms. The shares dropped -0.56 points or -2.48 percent at $22.01 with a heavy trade volume of 9.441 million shares. After opening the session at $21.88, the shares went as high as $22.38 and as low as $21.47, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.92 billion and now has 177.96 million shares outstanding. United States Steel Corporation (X) stock has lost -23.74 percent of market value in 21 trading days.

X stock has a trailing 3-year beta of 2.93, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.36 a share in the trailing twelve months. The stock’s value has fallen -37.45 percent year to date (YTD) against a decline of -26.22 percent in 12 month’s time. The company’s shares still trade -53.8 percent away from its 1-year high of $47.64 and 0.23 percent up from 52-week low of $21.96. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

United States Steel Corporation (X) will probably climb 75.97 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65-month high price target. This represents a whopping 195.32 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $35, which represents a return potential of 59.02 percent when compared to the closing price of the stock of $22.01 on Thursday, December 06. The lowest price target for the stock is $25 — slightly more than 13.58 percent from X’s current share price.

History has shown that shares in United States Steel Corporation have gone down on 21 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. Investors will get their next glimpse of X’s Q4 earnings on January 29. Analysts are forecasting revenue to climb 19.7 percent to $3.75B in the fiscal fourth quarter, while earnings are seen soaring by nearly 156.58 percent to $1.95 per share. It earned $1.79 per share, better than the $1.74, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.73B, better than the $3.71B analysts expected. Earnings are estimated to increase by 161.7 percent this year, 3.62 percent next year and continue to increase by 20.49 percent annually for the next 5 years.

Let’s take a look at some insider activity at United States Steel Corporation (NYSE:X) and see the pattern. The earliest insider trade took place on 11/20/2018. Bruno James E. parted with a total of 12 thousand shares of company at average share price of $25.75. The total for the sales was set at $309 thousand. After this transaction, the Sr. VP – European Solutions account balance stood at 56.18 thousand shares. The stock lost -14.52 percent since that insider sale. On 11/07/2018, Bradley Kevin, EVP & CFO, purchased 10 thousand shares at a price per share of $29.53. This added 295.3 thousand shares to the insider’s fortune and the stock saw a -25.47 percent retreat in value since the news became public. This transaction left 106.23 thousand shares in the EVP & CFO account.

On 06/01/2018, Sr. VP – Consumer Solutions Greenstein Sara A. performed a sale transaction worth $135.26 thousand. This sale at $37.5 each has eliminated 3.61 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -41.31 percent decrease since the transaction was reported. The insider now is left with 0.83 thousand shares remaining in the account. Bradley Kevin, who performs the EVP & CFO job, bought 10 thousand shares for $324.2 thousand. The acquisition occurred on 05/01/2018 was priced at $32.42 per share. The share price plunged -32.11 percent since the reporting date. Bradley Kevin now left with a stake of 96.73 thousand X stock worth $2.13 million after the insider buying.

The stock is currently hovering around the first support level of $21.53. Below this, the next support is placed in the zone of $21.04. Till the time, the X stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 28.51 on daily chart, which may remain a cause for comfort. If the price breaks below $21.04 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $22.44 mark may result into a pull-back move towards $22.86 level.

Shares of United States Steel Corporation (X) are trading at a P/E ratio of 164.38 times earnings reported for the past 12 months. The industry X operates in has an average P/E of 24.14. Its P/E ratio went as low as 39.87X and as high as 39.87 over the 5-year span.Further, it is sporting a 0.29 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 13 percent is the gross profit margin for United States Steel Corporation and operating margin sits at 6.3 percent. Along with this, the net profit margin is 5 percent.