Why Insteel (IIIN) Shares Are Getting Obliterated Today

What Happened?

Shares of steel wire manufacturer Insteel (NYSE:IIIN) fell 11.8% in the morning session after the company reported disappointing third-quarter results that fell below analysts' revenue and EPS expectations. Notably, sales declined 15% year on year, driven by a 12.9% decrease in average selling prices and a 2.1% decline in shipments. While pricing was impacted by competitive pressure, shipments declined due to adverse weather conditions. Overall, this was a mediocre quarter.

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What The Market Is Telling Us

Insteel’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Insteel and indicate this news significantly impacted the market’s perception of the business.

Insteel is down 26.5% since the beginning of the year, and at $27.73 per share, it is trading 29.2% below its 52-week high of $39.18 from December 2023. Investors who bought $1,000 worth of Insteel’s shares 5 years ago would now be looking at an investment worth $1,484.

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