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ArcelorMittal (MT) Completes Share Buyback, Commences Another

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ArcelorMittal (MT - Free Report) recently announced the completion of the share buyback program which was announced on Feb 15, 2021. ArcelorMittal had repurchased 27,113,321 million shares for a total value of roughly €536,570,952.53 (or $649,999,934.95) at an average price of around €19.79 per share as of Mar 3.

The company also announced the commencement of a second share buyback program. This buyback will be for an aggregate amount of $570 million, in sync with the company’s new capital returns policy published in the last earnings report.

The share buyback program is expected to be wrapped up by Dec 31, 2021. The acquired shares are intended to meet ArcelorMittal’s obligations under debt obligations exchangeable into equity securities and/or reduce its share capital.

Shares of ArcelorMittal have surged 135.4% in the past year compared with 112.5% rise of the industry.

The company envisions global apparent steel consumption (ASC) to increase 4.5-5.5% in 2021. This compares with a contraction of 1% in 2020. The global steel industry is now benefiting from a favorable supply-demand balance that is supporting rising utilization as demand recovers, the company noted. ArcelorMittal expects ASC to grow year over year in 2021 in all of its core markets based on this positive outlook.

ArcelorMittal Price and Consensus

 

ArcelorMittal Price and Consensus

ArcelorMittal price-consensus-chart | ArcelorMittal Quote

 

Zacks Rank & Other Key Picks

ArcelorMittal currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Fortescue Metals GroupLimited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 95.4% for the current fiscal. The company’s shares have surged around 223.4% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank  stocks here.

BHP has an expected earnings growth rate of 69.2% for the current fiscal. The company’s shares have soared 119% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 186.9% for the current fiscal. The company’s shares have rallied around 148.9% in the past year. It currently sports a Zacks Rank #1.

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