Ternium S.A. (NYSE:TX) Stock Position Increased by Donald Smith & CO. Inc.

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 Ternium S.A. (NYSE:TX - Free Report) by 2.5% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 3,099,790 shares of the basic materials company's stock after purchasing an additional 76,987 shares during the quarter. Ternium comprises approximately 2.4% of Donald Smith & CO. Inc.'s portfolio, making the stock its 16th largest holding. Donald Smith & CO. Inc. owned about 1.55% of Ternium worth $96,589,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of TX. XTX Topco Ltd purchased a new stake in Ternium during the first quarter worth about $703,000. Cape Ann Asset Management Ltd boosted its holdings in Ternium by 15.0% during the first quarter. Cape Ann Asset Management Ltd now owns 871,685 shares of the basic materials company's stock worth $27,162,000 after buying an additional 113,536 shares in the last quarter. Cetera Investment Advisers boosted its holdings in Ternium by 10.1% during the first quarter. Cetera Investment Advisers now owns 9,671 shares of the basic materials company's stock worth $301,000 after buying an additional 890 shares in the last quarter. MQS Management LLC purchased a new stake in Ternium during the first quarter worth about $441,000. Finally, Envestnet Asset Management Inc. boosted its holdings in Ternium by 18.2% during the first quarter. Envestnet Asset Management Inc. now owns 37,925 shares of the basic materials company's stock worth $1,182,000 after buying an additional 5,845 shares in the last quarter. 11.98% of the stock is currently owned by institutional investors and hedge funds.

Ternium Trading Up 1.7%

Shares of Ternium stock traded up $0.53 during trading hours on Tuesday, hitting $32.29. The company's stock had a trading volume of 108,233 shares, compared to its average volume of 225,712. Ternium S.A. has a 1-year low of $24.00 and a 1-year high of $37.98. The business has a fifty day moving average of $30.87 and a 200 day moving average of $29.88. The company has a market capitalization of $6.47 billion, a PE ratio of 10.66 and a beta of 1.53. The company has a quick ratio of 1.59, a current ratio of 2.68 and a debt-to-equity ratio of 0.12.

Ternium (NYSE:TX - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The basic materials company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.62. Ternium had a net margin of 3.66% and a return on equity of 1.95%. The company 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 earned ($0.11) earnings per share. The business's quarterly revenue was down 12.6% compared to the same quarter last year. As a group, equities analysts forecast that Ternium S.A. will post 4.37 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts have issued reports on TX shares. Morgan Stanley downgraded shares of 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. Scotiabank reduced their price target on shares of Ternium from $53.00 to $41.00 and set a "sector outperform" rating on the stock in a report on Thursday, July 17th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat, Ternium currently has an average rating of "Hold" and a consensus price target of $33.40.

Ternium Company Profile

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.