Davis Selected Advisers Boosts Stake in Teck Resources Ltd $TECK

Key Points

• Davis Selected Advisers increased its position by 9%, buying an additional 995,947 shares to hold 12,019,609 shares of Teck Resources (about $575.6M), making TECK the fund's 15th-largest holding.
• Multiple institutional investors (AQR, Jones Financial, UBS AM, Marshall Wace, NewEdge) also raised stakes, and overall 78.06% of Teck's stock is owned by hedge funds and other institutions.
• Analysts have a consensus "Hold" rating with a $59.17 target despite several upgrades (e.g., Benchmark to $67 and Citigroup to Buy), and Teck announced a quarterly dividend of $0.125 ($0.50 annual, ~0.9% yield).

Davis Selected Advisers increased its position in Teck Resources Ltd (NYSE:TECK - Free Report) TSE: TECK by 9.0% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 12,019,609 shares of the basic materials company's stock after purchasing an additional 995,947 shares during the period. Teck Resources accounts for about 2.6% of Davis Selected Advisers' holdings, making the stock its 15th biggest holding. Davis Selected Advisers owned 2.50% of Teck Resources worth $575,620,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in TECK. AQR Capital Management LLC lifted its holdings in shares of Teck Resources by 11.1% in the 1st quarter. AQR Capital Management LLC now owns 34,705 shares of the basic materials company's stock valued at $1,264,000 after purchasing an additional 3,458 shares during the last quarter. Jones Financial Companies Lllp raised its stake in Teck Resources by 453.0% during the 1st quarter. Jones Financial Companies Lllp now owns 9,721 shares of the basic materials company's stock valued at $354,000 after acquiring an additional 7,963 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Teck Resources by 1.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 465,861 shares of the basic materials company's stock valued at $16,971,000 after acquiring an additional 8,146 shares during the last quarter. Marshall Wace LLP raised its stake in Teck Resources by 189.3% during the 2nd quarter. Marshall Wace LLP now owns 218,242 shares of the basic materials company's stock valued at $8,813,000 after acquiring an additional 142,816 shares during the last quarter. Finally, NewEdge Advisors LLC raised its stake in Teck Resources by 4,602.9% during the 2nd quarter. NewEdge Advisors LLC now owns 8,183 shares of the basic materials company's stock valued at $330,000 after acquiring an additional 8,009 shares during the last quarter. 78.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have commented on the company. Benchmark upped their price objective on Teck Resources from $48.00 to $67.00 and gave the company a "buy" rating in a research note on Monday, February 23rd. Scotiabank reaffirmed a "sector perform" rating on shares of Teck Resources in a research note on Tuesday, April 14th. Weiss Ratings raised Teck Resources from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Citigroup raised Teck Resources from a "neutral" rating to a "buy" rating in a research note on Monday, February 2nd. Finally, UBS Group reaffirmed a "buy" rating on shares of Teck Resources in a research note on Tuesday, January 27th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, Teck Resources currently has an average rating of "Hold" and a consensus target price of $59.17.

Teck Resources Stock Performance

NYSE TECK opened at $57.99 on Friday. The company has a current ratio of 2.83, a quick ratio of 2.16 and a debt-to-equity ratio of 0.13. The business's 50 day moving average is $54.53 and its two-hundred day moving average is $49.92. Teck Resources Ltd has a 12-month low of $30.98 and a 12-month high of $63.26. The stock has a market capitalization of $27.95 billion, a price-to-earnings ratio of 21.24, a PEG ratio of 3.03 and a beta of 0.86.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last released its earnings results on Thursday, February 19th. The basic materials company reported $0.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.39. Teck Resources had a return on equity of 7.94% and a net margin of 14.91%.The company had revenue of $2.23 billion for the quarter, compared to analysts' expectations of $2.28 billion. During the same quarter in the previous year, the firm posted $0.45 EPS. The firm's quarterly revenue was up 9.8% on a year-over-year basis. Research analysts expect that Teck Resources Ltd will post 2.59 EPS for the current year.

Teck Resources Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a dividend of $0.125 per share. The ex-dividend date is Monday, June 15th. This represents a $0.50 annualized dividend and a yield of 0.9%. Teck Resources's payout ratio is presently 13.55%.

About Teck Resources

Teck Resources Ltd. is a diversified natural resource company headquartered in Canada that explores for, develops and produces a portfolio of metallic and energy commodities. Its core businesses center on copper, steelmaking (metallurgical) coal and zinc, with related smelting and refining activities. Teck supplies raw materials and intermediate products to global steelmakers, metals markets and industrial customers, and operates integrated mining and processing facilities as well as earlier-stage exploration and development projects.

The company's operations and projects are located across multiple geographies, with a significant presence in western Canada and North America and additional exploration and development activities in Latin America.

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