Should You Follow The Insiders And Buy United States Steel Corporation (X)?

Thanks to a 0.6 sell/buy ratio, United States Steel Corporation (NYSE:X) insider buying over the last three months picked up more than selling did. When insiders buy more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to rise soon. X recorded 1 sales on the open market in the last three months. They sold nearly 12,000 shares while purchases amounted to 20,000 shares that period. Looking even further back to 12 months, corporate insiders offloaded 196,499 shares when buyers snapped up 294,428 shares. The 12-month’s totals signify about a 0.67-to-1 sell/buy ratio.

Bradley Kevin gathered a total of 10 thousand shares of United States Steel Corporation (X) at average share price of $20.33. This insider trade in the company took place on 12/13/2018. The total for the purchase was set at $203.3 thousand. After this transaction, the EVP & CFO account balance stood at 116.27 thousand shares. The stock grew 3.49 percent since that insider purchase. On 11/20/2018, Bruno James E., Sr. VP – European Solutions, sold 12 thousand shares at a price per share of $25.75. This removed 309 thousand shares from the insider’s fortune and the stock saw a -18.29 percent retreat in value since the news became public. This transaction left 56.18 thousand shares in the Sr. VP – European Solutions account.

On 11/07/2018, EVP & CFO Bradley Kevin performed a purchase transaction worth $295.3 thousand. This purchase at $29.53 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -28.75 percent decrease since the transaction was reported. The insider now is left with 106.23 thousand shares remaining in the account. Greenstein Sara A., who performs the Sr. VP – Consumer Solutions job, sold 3.61 thousand shares for $135.26 thousand. The disposal occurred on 06/01/2018 was priced at $37.5 per share. The share price plunged -43.89 percent since the reporting date. Greenstein Sara A. now left with a stake of 0.83 thousand X stock worth $17.36 thousand after the insider selling.

The 12-month median price target for United States Steel Corporation (X) assigned by the analysts stands at $30, which represents a return potential of 42.59 percent when compared to the closing price of the stock of $21.04 on Friday, January 11. The lowest price target for the stock is $22 — slightly more than 4.56 percent from X’s current share price. The stock will probably climb 54.47 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 208.94 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 51.87 on daily chart, which may remain a cause for concern. If the price breaks below $20.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $21.24 mark may result into a pull-back move towards $21.45 level. The stock is currently hovering around the first support level of $20.67. Below this, the next support is placed in the zone of $20.31. Till the time, the X stock trades above this level, bulls have nothing to fear.

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 0.27 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.

On 11th of January, United States Steel Corporation (NYSE:X) shares ended higher after a volatile session. The shares accumulated 0.05 points or 0.24 percent at $21.04 with a light trade volume of 8.008 million shares. After opening the session at $20.84, the shares went as high as $21.08 and as low as $20.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.72 billion and now has 176.85 million shares outstanding. United States Steel Corporation (X) stock has gained 2.53 percent of market value in 21 trading days.

X stock has a trailing 3-year beta of 2.8, 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 surged 15.35 percent year to date (YTD) against a decline of -46.33 percent in 12 month’s time. The company’s shares still trade -55.84 percent away from its 1-year high of $47.64 and 23.15 percent up from 52-week low of $17.08. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.