After Hours 26 Feb 2026: Nippon Steel 5401.T slides on 600.00bn JPY bond plan, dilution ahead

5401.T stock fell in after-hours trade after Nippon Steel said it would expand a convertible bond sale to ¥600.00 billion. The move on 26 Feb 2026 hit investor sentiment and pushed shares below the session open. Nippon Steel Corporation (5401.T) trades on the JPX and closed the regular session at ¥663.90 with volume at 18,950,300 shares. We examine why the bond plan moved the market, how valuation and ratios stack up, and what traders should watch next for dilution and sector comparisons.

5401.T stock: after-hours price action and volume

Nippon Steel (5401.T) showed an after-hours reaction to the convertible bond announcement. The stock closed regular trade at ¥663.90, with a session low of ¥659.20 and high of ¥673.90. Volume was 18,950,300 versus an average volume of 25,148,605, indicating active selling pressure after the news.

On a technical basis the RSI at 39.33 and MACD histogram at -4.22 point to short-term weakness. Traders should note the Bollinger middle band near ¥665.24 as a short-term pivot.

Convertible bond news and immediate market impact

Nippon Steel expanded its convertible bond sale to ¥600.00 billion, the largest in Japan’s corporate history. The company said the bonds will fund debt reduction and capital needs, but investors fear share dilution and earnings per share pressure. Reuters and market outlets covered the move, which triggered an intra-session sell-off and headlines that weighed on sentiment Reuters.

Market commentary also flagged dilution concerns as shares fell after the announcement, with further coverage noting investor reactions and immediate stock weakness Investing.com.

5401.T stock: fundamentals, ratios and cash flow signals

Nippon Steel reports EPS of -2.36 and a trailing PE of -265.81, reflecting recent losses. The price to book ratio is 0.62, and book value per share is ¥1,119.56, which supports a value case despite profitability headwinds. Debt metrics show debt to equity at 0.99 and net debt to EBITDA near 6.32, highlighting leverage risk.

Dividend metrics show a dividend per share of ¥76.00 and a dividend yield calculation flagged in company data. Free cash flow per share reads as zero in recent reporting, so investors should watch cash flow statements closely in upcoming filings.

Technical view, trading signals and short-term outlook

Technicals show the stock below the 50-day moving average of ¥650.10 and above the 200-day average of ¥612.67. Momentum indicators are negative: ROC is -5.33% and CCI sits at -235.48. Volatility measures include ATR at 22.49, which implies wider intraday swings ahead.

Traders watching the JPX after-hours session should set stops near ¥628.34 (Bollinger lower) and look for a recovery above ¥665.24 to neutralize near-term downside.

Meyka AI rates 5401.T with a score out of 100 and forecast

Meyka AI rates 5401.T with a score out of 100: 69.94, Grade B, Suggestion HOLD. This grade factors in S&P 500 comparison, sector performance, financial growth, key metrics, and analyst consensus. These grades are informational and not financial advice.

Meyka AI’s forecast model projects a monthly price of ¥641.39, a quarterly price of ¥1,149.43, and a one-year price of ¥2,647.34. Compared with the current price of ¥663.90, the quarterly forecast implies +73.17% upside, and the one-year projection implies +298.90% upside. Forecasts are model-based projections and not guarantees.

Sector context, peers and key risks for 5401.T stock

Nippon Steel sits in the Basic Materials sector and the Steel industry. The sector shows cyclical performance and a one-year gain of 44.52% for select indices, but steel names face commodity cycles and demand risk from autos and construction. Peer valuations vary; Nippon Steel’s PB of 0.62 is below many sector averages, suggesting value but also reflecting profitability concerns.

Key risks include dilution from the convertible bond, high net debt to EBITDA, and weak EPS trends. Watch macro demand in Japan and export markets, and track earnings announcements scheduled for May 08, 2026.

Final Thoughts

Nippon Steel Corporation (5401.T) dropped in after-hours trade on 26 Feb 2026 after expanding a convertible bond sale to ¥600.00 billion, sparking dilution concerns that pushed the stock to close regular trade at ¥663.90. The company shows mixed signals: a low price to book of 0.62 and book value per share of ¥1,119.56, but negative EPS of -2.36 and high net debt to EBITDA near 6.32. Meyka AI’s forecast model projects a one-year target of ¥2,647.34, implying +298.90% from today’s price, while a nearer-term monthly model shows ¥641.39, a -3.41% drift versus current levels. Our technical read shows short-term weakness with RSI 39.33 and a CCI at -235.48, so traders should use tight risk controls. For investors, the decision hinges on tolerance for dilution, balance-sheet improvement, and confidence in steel demand recovery. Refer to the relevant coverage for details and check the company’s May earnings release and liquidity updates before adjusting positions. For a live data view, see the Meyka stock page for 5401.T and follow the Reuters and Investing.com reports cited earlier for market context Meyka stock page.

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Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.