NEW YORK (TheStreet) -- Shares of AK Steel (AKS) were gaining 2% to $5.55 Wednesday, continuing recent gains following the announcement that U.S. Steel (X) acquired the steel producer's remaining shares in Double Eagle Steel Coating.
AK Steel will receive $25.2 million for its half of the joint venture in DESCO and its 700,000-ton electrolytic-galvanizing line, according to Pittsburgh Business Times. Following the transaction U.S. Steel will fully own DESCO.
AK Steel acquired its shares of DESCO in July 2014 when it acquired Severstal's North American operations in Dearborn, MI.
About 8.5 million shares of AK Steel were traded by 1:35 p.m. Wednesday, compared to the company's average trading volume of 9.1 million shares a day.
AK Steel is a steel producer based in Middletown, Ohio.
TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: