United States Steel Corporation (NYSE:X), a major player in the steel industry with a market capitalization of $7.39 billion and a GOOD overall financial health rating according to InvestingPro, announced the immediate resignation of board member Jeh C. Johnson on Monday. The announcement was made in a filing with the Securities and Exchange Commission (SEC) today, January 8, 2025.
According to the SEC filing, Johnson's departure from the board is not due to any disagreement with the company's operations, policies, or practices. United States Steel expressed gratitude to Secretary Johnson for his contributions and wished him well in his future endeavors.
The company's common stock is traded on both the New York Stock Exchange and the Chicago Stock Exchange under the ticker symbol "X". The resignation comes at a time when the steel industry faces various market challenges, with InvestingPro data showing the company is currently burning through cash and five analysts have recently revised their earnings expectations downward. No specific reasons were given for Johnson's decision to step down.
In other recent news, major developments have been unfolding at US Steel. The company's fourth-quarter 2024 EBITDA is forecasted to be around $150 million, a downward revision from previous estimates as reported by BMO Capital Markets. This adjustment has prompted the firm to reduce its price target for US Steel from $43.00 to $40.00.
Additionally, President Biden recently blocked the proposed takeover of US Steel by Nippon Steel Corporation, citing national security and domestic supply chain concerns. Despite the blocked acquisition, US Steel announced plans to establish a workforce training center in Western Pennsylvania, a move aimed at fostering local talent and supporting the region's economic growth.
Meanwhile, Morgan Stanley (NYSE:MS) maintains its Overweight rating on US Steel, expressing confidence in the company's strategy and future performance. Lastly, BofA Securities has resumed its coverage on US Steel with a Neutral rating, following recent governmental intervention in the company's affairs. These are all recent developments that investors should take note of.
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