Worthington Steel (NYSE:WS) Shares Gap Down Following Weak Earnings

Worthington Steel, Inc. (NYSE:WS) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $35.01, but opened at $29.80. Worthington Steel shares last traded at $30.6340, with a volume of 143,603 shares traded.

The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.47 by ($0.20). Worthington Steel had a net margin of 3.64% and a return on equity of 10.19%. The company had revenue of $769.80 million for the quarter, compared to analysts’ expectations of $882.95 million. During the same quarter in the prior year, the company earned $0.35 earnings per share. The company’s revenue was up 12.0% compared to the same quarter last year.

Worthington Steel Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 12th will be given a $0.16 dividend. The ex-dividend date is Friday, June 12th. This represents a $0.64 annualized dividend and a yield of 2.1%. Worthington Steel’s payout ratio is presently 35.96%.

More Worthington Steel News

Here are the key news stories impacting Worthington Steel this week:

• Positive Sentiment: KeyCorp started coverage with an “overweight” rating and a $46 price target, signaling bullish analyst conviction and ~54% upside from recent levels. KeyCorp Coverage
• Positive Sentiment: Board declared a quarterly cash dividend of $0.16/share (annualized yield ~2.1%), a modest support for income-focused holders and a signal of capital return discipline. Worthington Steel Declares Quarterly Dividend
• Neutral Sentiment: Broader market futures were lower amid geopolitical headlines, creating a cautious context for cyclical names like steelmakers; this broader weakness may have amplified WS’s move today. Stock Market Today: Dow Jones, S&P 500 Futures Fall…
• Neutral Sentiment: Company filed its formal Q3 fiscal 2026 results and supporting slide deck/press release — useful for investors reviewing management commentary and segment detail but not materially changing the miss-driven reaction. Worthington Steel Reports Third-Quarter Fiscal 2026 Results
• Negative Sentiment: Q3 EPS was $0.27, well below the consensus of $0.47 (miss of $0.20). Revenue was $769.8M vs. estimates near $883M. The earnings miss is the primary driver of today’s selloff. Worthington Steel Q3 Results and Conference Call
• Negative Sentiment: Analyst and news outlets highlighted the miss and weak results, noting EPS decline year-over-year (from $0.35) despite 12% YoY revenue growth — investors are focused on margin and profitability pressures. WS Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Market coverage summed up the reaction as a tumble on the earnings miss and weak results — higher intraday volume suggests forced or accelerated selling. Worthington Steel tumbles on earnings miss and weak results
• Negative Sentiment: Full earnings call transcript is available for detail on demand guidance, order trends, input-cost dynamics and management tone — items investors will parse for whether the miss reflects temporary items or a more structural slowdown. Worthington Steel Q3 2026 Earnings Call Transcript

Analysts Set New Price Targets

WS has been the topic of several analyst reports. Zacks Research raised shares of Worthington Steel from a “strong sell” rating to a “hold” rating in a research note on Monday, February 16th. Weiss Ratings reissued a “hold (c)” rating on shares of Worthington Steel in a research report on Wednesday, January 21st. Wall Street Zen raised shares of Worthington Steel from a “buy” rating to a “strong-buy” rating in a report on Saturday, February 28th. Finally, KeyCorp assumed coverage on shares of Worthington Steel in a research report on Wednesday. They issued an “overweight” rating and a $46.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $46.00.

Insider Activity at Worthington Steel

In other Worthington Steel news, Director Scott J. Kelly bought 7,000 shares of the firm’s stock in a transaction that occurred on Tuesday, January 27th. The stock was bought at an average price of $39.11 per share, for a total transaction of $273,770.00. Following the completion of the acquisition, the director directly owned 16,157 shares in the company, valued at $631,900.27. The trade was a 76.44% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jon J. Bowsher purchased 2,500 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The stock was acquired at an average cost of $40.15 per share, with a total value of $100,375.00. Following the purchase, the director directly owned 17,893 shares of the company’s stock, valued at $718,403.95. This trade represents a 16.24% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WS. Alliancebernstein L.P. raised its holdings in Worthington Steel by 695.6% in the 3rd quarter. Alliancebernstein L.P. now owns 969,887 shares of the company’s stock worth $29,475,000 after purchasing an additional 847,981 shares in the last quarter. Teacher Retirement System of Texas boosted its stake in shares of Worthington Steel by 429.8% during the 3rd quarter. Teacher Retirement System of Texas now owns 513,416 shares of the company’s stock valued at $15,603,000 after purchasing an additional 416,509 shares in the last quarter. LSV Asset Management increased its position in shares of Worthington Steel by 563.7% during the fourth quarter. LSV Asset Management now owns 365,672 shares of the company’s stock valued at $12,660,000 after buying an additional 310,572 shares during the period. Vanguard Group Inc. raised its stake in Worthington Steel by 5.3% in the fourth quarter. Vanguard Group Inc. now owns 4,287,641 shares of the company’s stock worth $148,438,000 after buying an additional 217,090 shares in the last quarter. Finally, Keybank National Association OH purchased a new stake in Worthington Steel in the fourth quarter worth about $7,163,000. 45.41% of the stock is owned by hedge funds and other institutional investors.

Worthington Steel Stock Down 14.7%

The company’s fifty day simple moving average is $40.01 and its 200 day simple moving average is $35.58. The company has a quick ratio of 1.09, a current ratio of 1.80 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $1.52 billion, a PE ratio of 16.78 and a beta of 1.62.

Worthington Steel Company Profile

Worthington Steel (NYSE: WS) is a leading North American steel processor specializing in the production of flat-rolled, coated and painted sheet and coil products. Operating as a wholly owned subsidiary of Worthington Industries, the company serves a broad range of industries, including construction, automotive, appliance, energy and agricultural equipment. Its core business activities encompass the processing, finishing and distribution of carbon and advanced high-strength steels, aluminum and stainless products to manufacturers across the continent.

The company’s product portfolio includes hot-dip galvanizing, galvannealed, aluminized and pre-painted steel products, as well as cold-rolled and hot-rolled coil.