Shares of Ryerson Holding are approaching a pivotal week as the market digests the company’s latest strategic move. The catalyst is the formal submission of final details for its planned acquisition of Olympic Steel to U.S. regulators this past Friday. This development unfolds against a backdrop of divergent institutional investor activity and recent financial headwinds for the metals processor.
Institutional Investors Show Diverging Conviction
Recent regulatory filings reveal that major asset managers are taking opposing views on Ryerson’s stock. This mixed sentiment emerges even as the company pushes forward with a significant merger.
- Donald Smith & CO. Inc. established a new position during the second quarter of 2025, purchasing 111,400 shares valued at approximately $2.40 million.
- In contrast, Fisher Asset Management LLC slashed its stake by 49.9 %, divesting 51,394 shares.
This split in institutional strategy highlights the uncertain outlook surrounding the firm’s near-term prospects.
Financial Performance and Forward Guidance
The acquisition news follows a disappointing earnings report. Ryerson recently posted a quarterly loss of -$0.46 per share, a result that fell sharply short of analyst expectations for a profit of $0.03. Looking ahead, management’s own forecast for the fourth quarter of 2025 anticipates a loss in the range of -$0.28 to -$0.22 per share.
Despite these losses, the company has maintained its quarterly dividend of $0.1875 per share. At current levels, this payout provides a yield of roughly 3.1 %.
Should investors sell immediately? Or is it worth buying Ryerson?
Terms of the Olympic Steel Merger
The core of Ryerson’s strategy is its all-stock transaction to acquire Olympic Steel. According to a Form S-4 filing dated December 5, Olympic Steel shareholders will receive 1.7105 Ryerson shares for each share they own. Based on Ryerson’s average share price in late October 2025, this exchange ratio implied a value of about $39.26 per Olympic Steel share.
Upon completion of the deal, existing Ryerson shareholders are projected to own approximately 63.0 % of the combined entity. Shareholders of Olympic Steel will hold the remaining 37.0 %.
Market Sentiment and Critical Upcoming Events
The market has responded with caution to Ryerson’s expansion ambitions during a challenging period. The stock closed Friday’s session at $23.89, trading below the average analyst price target of $25.00. The consensus rating among market experts currently stands at “Reduce” or “Sell.”
Two key events will shape the stock’s trajectory in the near term. First, shareholders of both companies must grant official approval for the merger to proceed. Subsequently, all eyes will be on the release of Ryerson’s Q4 2025 financial results. Investors will be watching closely to see if the company can outperform its own subdued quarterly forecast.
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