Ninety One North America Inc. Sells 144,739 Shares of Ternium S.A. $TX

Key Points

• Ninety One North America trimmed its stake in Ternium by 15.6%, selling 144,739 shares in 4Q and now holds 785,653 shares (~0.39% of the company) valued at about $30.0M, making it the fund's 29th largest position.
• Ternium missed Q4 expectations with EPS of $0.62 vs. a $0.77 estimate and revenue of $3.77B (down 2.6% year-over-year), and announced a $0.90 dividend payable May 20 (record/ex-dividend date May 14) with an ~83% payout ratio.
• Analyst sentiment is mixed with a consensus rating of Hold and an average price target of $39.79 (ratings range from Strong Buy to Sell across contributors).

Ninety One North America Inc. lessened its stake in shares of Ternium S.A. (NYSE:TX - Free Report) by 15.6% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 785,653 shares of the basic materials company's stock after selling 144,739 shares during the period. Ternium accounts for approximately 1.2% of Ninety One North America Inc.'s holdings, making the stock its 29th biggest position. Ninety One North America Inc. owned 0.39% of Ternium worth $30,004,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Deprince Race & Zollo Inc. boosted its holdings in shares of Ternium by 17.3% during the 4th quarter. Deprince Race & Zollo Inc. now owns 118,482 shares of the basic materials company's stock valued at $4,525,000 after purchasing an additional 17,461 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of Ternium during the 4th quarter valued at about $736,000. GAMMA Investing LLC boosted its holdings in shares of Ternium by 56.4% during the 4th quarter. GAMMA Investing LLC now owns 1,659 shares of the basic materials company's stock valued at $63,000 after purchasing an additional 598 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Ternium by 142.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,254 shares of the basic materials company's stock valued at $44,000 after purchasing an additional 736 shares during the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Ternium during the 3rd quarter valued at about $38,000. Institutional investors own 11.98% of the company's stock.

Ternium Stock Performance

Ternium stock opened at $42.25 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.49 and a quick ratio of 1.45. Ternium S.A. has a 1-year low of $26.75 and a 1-year high of $45.57. The firm has a market capitalization of $8.47 billion, a P/E ratio of 19.56 and a beta of 1.27. The company's 50-day moving average is $41.14 and its 200 day moving average is $39.23.

Ternium (NYSE:TX - Get Free Report) last posted its quarterly earnings data on Saturday, February 14th. The basic materials company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.77 by ($0.15). Ternium had a return on equity of 3.06% and a net margin of 2.72%.The firm had revenue of $3.77 billion during the quarter, compared to analysts' expectations of $3.81 billion. During the same period last year, the company earned ($0.42) earnings per share. The business's revenue for the quarter was down 2.6% compared to the same quarter last year. Research analysts forecast that Ternium S.A. will post 4.37 EPS for the current year.

Ternium Announces Dividend

The company also recently disclosed a dividend, which will be paid on Wednesday, May 20th. Investors of record on Thursday, May 14th will be given a $0.90 dividend. This represents a yield of 413.0%. The ex-dividend date of this dividend is Thursday, May 14th. Ternium's dividend payout ratio is 83.33%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on TX shares. UBS Group increased their price objective on shares of Ternium from $39.00 to $41.00 and gave the company a "neutral" rating in a report on Thursday, April 2nd. Zacks Research downgraded shares of Ternium from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 29th. Weiss Ratings raised shares of Ternium from a "hold (c)" rating to a "buy (b-)" rating in a report on Friday, February 20th. Wells Fargo & Company reissued an "underweight" rating and set a $36.00 price objective on shares of Ternium in a report on Wednesday. Finally, Scotiabank reissued a "sector perform" rating and set a $40.00 price objective on shares of Ternium in a report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $39.79.

About Ternium

Ternium SA NYSE: TX is a leading vertically integrated steel producer with operations across the Americas. The company manufactures a broad range of flat and long steel products, including hot‐rolled and cold‐rolled coils, galvanized and tin-coated sheets, plates, rebars, wire rods, bars and structural sections. These products serve diverse end markets such as automotive, construction, energy, industrial machinery, home appliances and packaging.

Established in 2005 through the consolidation of steel assets in Argentina and Mexico, Ternium has grown to operate major production facilities in Argentina, Brazil, Mexico, Colombia, Central America and the United States.

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