Here’s The Case for and Against GrafTech International Ltd. (EAF)

On Tuesday, shares of GrafTech International Ltd. (NYSE:EAF) marked $11.09 per share versus a previous $10.83 closing price. With having a 2.40% gain, an insight into the fundamental values of GrafTech International Ltd., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. EAF showed a fall of -3.06% within its YTD performance, with highs and lows between $9.60 – $19.34 during the period of 52 weeks, compared to the simple moving average of -12.03% in the period of the last 200 days.

Citigroup equity researchers changed the status of GrafTech International Ltd. (NYSE: EAF) shares from “Sell” to a “Neutral” rating in the report published on July 25th, 2019. Other analysts, including Citigroup, also published their reports on EAF shares. Citigroup repeated the rating from the previous report, marking EAF under “Sell” rating, in the report published on April 22nd, 2019. Additionally, EAF shares got another “Outperform” rating from RBC Capital Mkts, setting a target price of $23 on the company’s shares, according to the report published in May 14th, 2018. On May 14th, 2018, JP Morgan Initiated an Overweight rating and increased its price target to $29. On the other hand, Credit Suisse Initiated the “Outperform” rating for EAF shares, as published in the report on May 14th, 2018.

GrafTech International Ltd. (EAF) Analysis

The present dividend yield for EAF owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with GrafTech International Ltd., the company needs to provide a healthy cash flow, currently at the value of 1.70. In addition, the growth of sales from quarter to quarter is recording 5.30%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of GrafTech International Ltd. (EAF) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -88.80% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.20 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while EAF is currently recording an average of 1.29M in volumes. The volatility of the stock on monthly basis is set at 4.46%, while the weekly volatility levels are marked at 5.05%with 3.16% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $17.60, indicating growth from the present price of $11.09, which can represent yet another valuable research and analysis points that can help you decide whether to invest in EAF or pass.

What to Look for When Analyzing GrafTech International Ltd. Shares?

GrafTech International Ltd. (EAF) is based in the USA and it represents one of the well-known company operating with Industrial Goods sector. If you wish to compare EAF shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 3.93 for GrafTech International Ltd., while the value 3.83 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 2.82 is supported by the yearly ESP growth of 717.10%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at , which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in EAF Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in EAF in the recent period. That is how The Vanguard Group, Inc. now has an increase position in EAF by 2.94% in the first quarter, owning 5.92 million shares of EAF stocks, with the value of $67.8 million after the purchase of an additional 168,977 shares during the last quarter. In the meanwhile, Norges Bank Investment Management also increased their stake in EAF shares changed — in the first quarter, which means that the company now owns 4.97 million shares of company, all valued at $56.96 million after the acquisition of additional 4,974,408 shares during the last quarter.

BlackRock Fund Advisors acquired a new position in GrafTech International Ltd. during the first quarter, with the value of $41.03 million, and CDAM increased their stake in the company’s shares by 15.15% in the first quarter, now owning 260,772 shares valued at $22.69 million after the acquisition of the additional 1.98 million shares during the last quarter.