Norsk Hydro ASA Share Price Drops Below Moving Average - What Lies Ahead?

Norsk Hydro ASA (OTCMKTS:NHYDY) experienced a notable decline as its share price dipped below the critical 50-day moving average during trading on Wednesday. The stock, which has a 50-day moving average set at $6.10, was observed trading at a low of $5.40 before ending the day at $5.51, with a trading volume of 74,411 shares.

Analyst Updates on Norsk Hydro ASA

Various investment research firms have provided updates concerning the stock performance of Norsk Hydro ASA. Notably, Citigroup upgraded the shares from a "hold" rating to a "strong-buy" rating in its research note issued on December 11. Meanwhile, Barclays also joined the bullish sentiment by raising its rating to "strong-buy" on October 16.

Recent Price Trends and Company Metrics

Norsk Hydro ASA currently holds a market capitalization of approximately $11.07 billion. Its price-to-earnings (P/E) ratio stands at 91.83, while the P/E to growth (P/E/G) ratio is at a more reasonable 0.21, indicating potential undervaluation. The stock has a beta of 1.52, suggesting it tends to be more volatile than the overall market. Financially, the company has a debt-to-equity ratio of 0.23, a current ratio of 1.60, and a quick ratio of 1.07, signifying a stable financial position.

On October 24, Norsk Hydro ASA disclosed its latest earnings report, showing an earnings per share (EPS) of $0.14 per share, aligning with the consensus expectations. The company's financial performance reflected a net margin of 0.69% and a return on equity (ROE) of 7.26%. During this quarter, Norsk Hydro generated revenues amounting to $4.68 billion. Market analysts project an EPS of $0.55 for the current fiscal year for the company.

About the Company

Norsk Hydro ASA operates globally in several industries, engaging in power production, bauxite extraction, alumina refining, aluminum smelting, and recycling activities. The company's operations are segmented into Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy.

Considerations for Investors

Investors pondering whether to invest in Norsk Hydro ASA should take note that, while the stock carries a "Strong Buy" rating overall, analysts have identified alternative stocks that may present better investment opportunities at this time.

This article is intended to provide an overview of the current status of Norsk Hydro ASA's stock and recent performance changes.

Norsk, Hydro, Stock