Fintel reports that on October 2, 2023, Morgan Stanley upgraded their outlook for United States Steel (NYSE:X) from Equal-Weight to Overweight.

Analyst Price Forecast Suggests 27.25% Downside

As of August 31, 2023, the average one-year price target for United States Steel is 23.84. The forecasts range from a low of 14.50 to a high of $31.50. The average price target represents a decrease of 27.25% from its latest reported closing price of 32.77.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for United States Steel is 15,565MM, a decrease of 18.16%. The projected annual non-GAAP EPS is 2.19.

United States Steel Declares $0.05 Dividend

On July 27, 2023 the company declared a regular quarterly dividend of $0.05 per share ($0.20 annualized). Shareholders of record as of August 7, 2023 received the payment on September 7, 2023. Previously, the company paid $0.05 per share.

At the current share price of $32.77 / share, the stock’s dividend yield is 0.61%.

Looking back five years and taking a sample every week, the average dividend yield has been 0.77%, the lowest has been 0.14%, and the highest has been 2.20%. The standard deviation of yields is 0.44 (n=236).

The current dividend yield is 0.37 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.03. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 4.00%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 833 funds or institutions reporting positions in United States Steel. This is a decrease of 26 owner(s) or 3.03% in the last quarter. Average portfolio weight of all funds dedicated to X is 0.19%, a decrease of 10.59%. Total shares owned by institutions increased in the last three months by 1.96% to 181,694K shares. The put/call ratio of X is 1.54, indicating a bearish outlook.

What are Other Shareholders Doing?

IJH – iShares Core S&P Mid-Cap ETF holds 6,869K shares representing 3.08% ownership of the company. In it’s prior filing, the firm reported owning 6,991K shares, representing a decrease of 1.77%. The firm decreased its portfolio allocation in X by 9.81% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,342K shares representing 2.84% ownership of the company. In it’s prior filing, the firm reported owning 6,328K shares, representing an increase of 0.22%. The firm decreased its portfolio allocation in X by 11.39% over the last quarter.

Marshall Wace, Llp holds 6,133K shares representing 2.75% ownership of the company. In it’s prior filing, the firm reported owning 5,821K shares, representing an increase of 5.08%. The firm increased its portfolio allocation in X by 40.19% over the last quarter.

Slate Path Capital holds 5,943K shares representing 2.67% ownership of the company. In it’s prior filing, the firm reported owning 4,723K shares, representing an increase of 20.53%. The firm decreased its portfolio allocation in X by 6.11% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 5,262K shares representing 2.36% ownership of the company. In it’s prior filing, the firm reported owning 5,337K shares, representing a decrease of 1.44%. The firm decreased its portfolio allocation in X by 10.12% over the last quarter.

United States Steel Background Information
(This description is provided by the company.)

Founded in 1901, the United States Steel Corporation is a Fortune 250 company and leading integrated steel producer. With extensive iron ore production and an annual raw steelmaking capability of 26.2 million net tons, U. S. Steel produces high value-added steel products for the automotive, infrastructure, appliance, container, and energy industries. The company’s Best of BothSM integrated and mini-mill technology strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With renewed emphasis on innovation and customer focus, the company produces cutting-edge products such as U. S. Steel’s proprietary XG3™ advanced high-strength steel. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe.

This article originally appeared on Fintel

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