EVR has been added to Freetrade’s stock universe
Could someone give an opinion on what has caused the price drop for Evraz, this seems to be the lowest they have been for a while.
A cooling world economy, and steel is always the first to show since it’s used in all building activities and is therefore a proxy for the world economy’s downturn.
But in the end, nobody knows why exactly. Analyst change their forecasts and the markets move.
In addition to what @SebReitz has said, the 3 largest stockholders have been dumping stock with very little explanation on their end. The company tried to put positive spin on it saying that this move actually reduces the political (sanction) risk on the company.
Its a risky company, as are most miners & steelmakers right now. Debt is quite high & analysts are unsure if revenue and profit will be hit (and by how much) so it has sold down to this level. Its a boom and bust industry so you have to get used to low quality earnings that these companies put out.