After speaking with Ferroglobe management, Jefferies analyst Martin Englert reported that they "are absolutely not considering a sale" and continue to see value in the company's shares. The company must wait until after its Q2 report next week before it would be able to initiate a buyback, added Englert. He also believes Ferroglobe will show supply-side discipline by curtailing production and/or idling silicon metal capacity should spot prices drift lower. As a result of a reduced 2019 EBITDA forecast due to lower price assumptions, Englert lowered his price target on Ferroglobe shares to $10 from $15 but he maintains a Buy rating on the stock.

Bearish flow noted in Ferroglobe with 1,011 puts trading, or 1.0x expected. Most active are Apr-24 5 puts and May-24 6 calls, with total volume in those strikes near 1,000 contracts. The Put/Call Ratio is 34.86, while ATM IV is up nearly 3 points on the day. Earnings are expected on May 7th.