Donald Smith & CO. Inc. Boosts Stake in Ternium S.A. (NYSE:TX)

Key Points

• Donald Smith & CO. Inc. increased its stake in Ternium S.A. by 2.5%, holding approximately 3.1 million shares which represents about 2.4% of its investment portfolio.
• The company reported earnings of $1.28 per share, significantly above analyst expectations of $0.66, despite a year-over-year revenue decline of 12.6% to $3.95 billion.
• Analysts have mixed outlooks on Ternium's stock, with a consensus rating of "Hold" and a price target averaging $33.40, reflecting revised ratings from Morgan Stanley and Scotiabank.

Donald Smith & CO. Inc. raised its holdings in shares of Ternium S.A. (NYSE:TX - Free Report) by 2.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 3,099,790 shares of the basic materials company's stock after purchasing an additional 76,987 shares during the period. Ternium makes up about 2.4% of Donald Smith & CO. Inc.'s investment portfolio, making the stock its 16th largest holding. Donald Smith & CO. Inc. owned 1.55% of Ternium worth $96,589,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. NewEdge Advisors LLC boosted its stake in shares of Ternium by 500.0% in the 4th quarter. NewEdge Advisors LLC now owns 1,200 shares of the basic materials company's stock worth $35,000 after buying an additional 1,000 shares during the last quarter. GAMMA Investing LLC lifted its position in Ternium by 51.8% during the first quarter. GAMMA Investing LLC now owns 1,913 shares of the basic materials company's stock valued at $60,000 after purchasing an additional 653 shares in the last quarter. Aquatic Capital Management LLC lifted its position in Ternium by 28.4% during the fourth quarter. Aquatic Capital Management LLC now owns 2,182 shares of the basic materials company's stock valued at $63,000 after purchasing an additional 482 shares in the last quarter. Cornerstone Select Advisors LLC purchased a new position in Ternium during the fourth quarter valued at $215,000. Finally, Cetera Investment Advisers lifted its position in Ternium by 10.1% during the first quarter. Cetera Investment Advisers now owns 9,671 shares of the basic materials company's stock valued at $301,000 after purchasing an additional 890 shares in the last quarter. 11.98% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

TX has been the topic of several analyst reports. Scotiabank lowered their target price on Ternium from $53.00 to $41.00 and set a "sector outperform" rating on the stock in a research report on Thursday, July 17th. Morgan Stanley cut Ternium from an "overweight" rating to an "equal weight" rating and set a $34.00 price target on the stock. in a report on Monday, July 21st. Finally, Wells Fargo & Company started coverage on Ternium in a report on Wednesday. They set an "underweight" rating and a $30.00 price target on the stock. Two analysts have rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, Ternium currently has an average rating of "Hold" and an average target price of $32.83.

Ternium Stock Down 2.9%

Ternium stock traded down $0.96 during mid-day trading on Thursday, reaching $32.15. 107,494 shares of the company were exchanged, compared to its average volume of 229,684. The business has a fifty day moving average of $30.96 and a 200 day moving average of $29.90. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.59 and a current ratio of 2.68. The firm has a market cap of $6.45 billion, a P/E ratio of 10.61 and a beta of 1.53. Ternium S.A. has a 12-month low of $24.00 and a 12-month high of $37.98.

Ternium (NYSE:TX - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The basic materials company reported $1.28 EPS for the quarter, beating the consensus estimate of $0.66 by $0.62. Ternium had a return on equity of 1.95% and a net margin of 3.66%. The firm had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.19 billion. During the same quarter in the prior year, the business posted ($0.11) EPS. The business's revenue for the quarter was down 12.6% compared to the same quarter last year. Research analysts anticipate that Ternium S.A. will post 4.37 earnings per share for the current fiscal year.

About Ternium

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.