Ternium (NYSE:TX) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded Ternium from “strong buy” to “buy.” Despite mixed analyst views, the stock carries a consensus “Moderate Buy” rating and an average price target of $57.17.
• Ternium reported quarterly earnings of $1.42 per share, below the $1.79 consensus estimate. Revenue was $4.64 billion, slightly under forecasts but up 17.4% year over year.
• Analyst opinions remain divided: JPMorgan raised its price target to $67.50 and maintained an “overweight” rating, while HSBC and Wells Fargo hold more cautious ratings.

Ternium (NYSE:TX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other research analysts have also recently commented on TX. JPMorgan Chase & Co. boosted their price target on Ternium from $60.50 to $67.50 and gave the stock an "overweight" rating in a report on Friday, September 4th. Weiss Ratings raised shares of Ternium from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, September 10th. HSBC downgraded Ternium from a "buy" rating to a "hold" rating and upped their target price for the company from $53.00 to $55.00 in a research report on Friday, August 21st. Wells Fargo & Company decreased their price target on Ternium from $56.00 to $52.00 and set an "equal weight" rating for the company in a report on Thursday. Finally, Zacks Research cut Ternium from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 13th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $57.17.

Ternium Price Performance

Shares of NYSE TX opened at $49.19 on Friday. The firm has a market cap of $9.86 billion, a PE ratio of 10.08, a PEG ratio of 0.14 and a beta of 1.17. The company has a current ratio of 2.58, a quick ratio of 1.43 and a debt-to-equity ratio of 0.14. The company has a fifty day moving average price of $55.91 and a 200 day moving average price of $47.81. Ternium has a 1-year low of $35.12 and a 1-year high of $60.21.

Ternium (NYSE:TX - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The basic materials company reported $1.42 earnings per share for the quarter, missing analysts' consensus estimates of $1.79 by ($0.37). The business had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.65 billion. Ternium had a return on equity of 4.26% and a net margin of 4.37%. The company's revenue was up 17.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.10 earnings per share. Research analysts predict that Ternium will post 6.38 earnings per share for the current fiscal year.

Institutional Trading of Ternium

Hedge funds and other institutional investors have recently modified their holdings of the company. Lazard Asset Management LLC raised its holdings in shares of Ternium by 8.0% during the 1st quarter. Lazard Asset Management LLC now owns 6,336,127 shares of the basic materials company's stock worth $254,395,000 after buying an additional 469,846 shares in the last quarter. Donald Smith & CO. Inc. bought a new stake in Ternium in the 2nd quarter worth about $134,131,000. Amundi raised its holdings in shares of Ternium by 19.9% in the 1st quarter. Amundi now owns 703,304 shares of the basic materials company's stock worth $28,238,000 after purchasing an additional 116,813 shares during the period. Robeco Institutional Asset Management B.V. increased its stake in Ternium by 9.7% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 472,046 shares of the basic materials company's stock worth $25,632,000 after acquiring an additional 41,561 shares during the last quarter. Finally, Nykredit A S purchased a new stake in Ternium during the second quarter valued at about $14,329,000. Institutional investors and hedge funds own 11.98% of the company's stock.

About Ternium

Ternium SA is a steel producer serving customers primarily in the Americas. The company manufactures and distributes a broad range of steel products, including flat steel, long steel, galvanized and pre-painted steel, hot- and cold-rolled products, steel bars, wire rod, and tubular products.

Ternium supplies industries such as construction, automotive, appliance manufacturing, energy, transportation, and agriculture. Its operations include iron ore mining, steelmaking, rolling, coating, processing, and distribution, allowing it to offer both commodity and higher-value-added steel products.

The company has industrial and commercial operations across Latin America, including Mexico, Brazil, Argentina, Colombia, and other markets in the region, as well as a presence in the United States and Central America.

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