Ternium (NYSE:TX) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Ternium (NYSE:TX) from a hold rating to a sell rating in a research report released on Friday morning, Zacks.com reports.

According to Zacks, “Ternium is the leading producer of flat and long steel products of Latin America and consolidates the operations of the steel companies Hylsa in Mexico, Siderar in Argentina and Sidor in Venezuela. It create value with our customers, jointly improving competitiveness and productivity, through a highly efficient industrial and technological base and a global commercial network. “

Several other equities research analysts have also recently commented on the stock. Morgan Stanley cut shares of Ternium from an overweight rating to an equal weight rating and dropped their price target for the stock from $60.00 to $50.00 in a research report on Monday, October 18th. The Goldman Sachs Group started coverage on shares of Ternium in a research report on Friday, December 10th. They issued a buy rating and a $57.00 price target on the stock. Scotiabank upgraded shares of Ternium from a sector perform rating to a sector outperform rating and dropped their price target for the stock from $63.00 to $61.00 in a research report on Monday, December 20th. Finally, Wolfe Research cut shares of Ternium from a peer perform rating to an underperform rating and set a $45.00 price target on the stock. in a research report on Tuesday. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of Hold and an average target price of $57.80.

Shares of NYSE TX opened at $46.56 on Friday. Ternium has a fifty-two week low of $26.41 and a fifty-two week high of $56.86. The firm’s 50-day simple moving average is $42.20 and its 200 day simple moving average is $45.39. The company has a quick ratio of 1.33, a current ratio of 2.50 and a debt-to-equity ratio of 0.09. The stock has a market cap of $9.33 billion, a P/E ratio of 2.67, a P/E/G ratio of 0.22 and a beta of 1.63.

Ternium (NYSE:TX) last issued its quarterly earnings data on Tuesday, November 2nd. The basic materials company reported $6.12 earnings per share for the quarter, beating analysts’ consensus estimates of $5.39 by $0.73. Ternium had a net margin of 23.90% and a return on equity of 33.46%. The business had revenue of $4.59 billion for the quarter, compared to analysts’ expectations of $4.30 billion. During the same period in the previous year, the business earned $0.61 earnings per share. On average, sell-side analysts anticipate that Ternium will post 19.2 earnings per share for the current fiscal year.

The business also recently declared an annual dividend, which was paid on Friday, November 19th. Investors of record on Monday, November 15th were paid a $0.80 dividend. The ex-dividend date of this dividend was Friday, November 12th. This represents a yield of 7.5%. Ternium’s dividend payout ratio is currently 4.58%.

A number of institutional investors and hedge funds have recently modified their holdings of TX. Man Group plc purchased a new position in Ternium in the 2nd quarter worth about $30,724,000. American Century Companies Inc. grew its stake in Ternium by 53.1% during the 3rd quarter. American Century Companies Inc. now owns 1,514,817 shares of the basic materials company’s stock valued at $64,077,000 after acquiring an additional 525,413 shares in the last quarter. Two Sigma Investments LP grew its stake in Ternium by 1,516.8% during the 3rd quarter. Two Sigma Investments LP now owns 411,125 shares of the basic materials company’s stock valued at $17,391,000 after acquiring an additional 385,696 shares in the last quarter. Marshall Wace North America L.P. grew its stake in Ternium by 45.5% during the 2nd quarter. Marshall Wace North America L.P. now owns 1,201,465 shares of the basic materials company’s stock valued at $46,208,000 after acquiring an additional 375,703 shares in the last quarter. Finally, Amundi purchased a new position in Ternium during the 2nd quarter valued at about $14,371,000. 14.87% of the stock is currently owned by hedge funds and other institutional investors.

Ternium Company Profile

Ternium SA engages in the manufacturing and trade of steel products. The firm offers its products to construction, automotive, manufacturing, home appliances, packaging, energy, and transport industries. It operates through the Steel and Mining segments. The Steel segment include slabs, billets, and round bars; hot-rolled coils and sheets; bars and stirrups; wire rods; tin plate; hot dipped galvanized and electrogalvanized sheets; and pre-painted sheets, steel pipes, and tubular products.

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