Pentwater Capital Management LP Increases Holdings in Teck Resources Ltd $TECK

Key Points

• Pentwater Capital Management LP increased its holdings in Teck Resources Ltd by 70% in Q1, acquiring an additional 35,000 shares to reach a total of 85,000 shares valued at $3.1 million.
• Teck Resources reported a quarterly earnings per share (EPS) of $0.27, exceeding analysts' expectations of $0.20, while also increasing its dividend to $0.0918 per share.
• Despite these positive earnings, several analysts downgraded their ratings for Teck Resources, reflecting mixed sentiment among market observers.

Pentwater Capital Management LP lifted its stake in Teck Resources Ltd (NYSE:TECK - Free Report) TSE: TECK by 70.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 85,000 shares of the basic materials company's stock after buying an additional 35,000 shares during the period. Pentwater Capital Management LP's holdings in Teck Resources were worth $3,097,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of TECK. Principal Financial Group Inc. grew its stake in shares of Teck Resources by 56.9% in the first quarter. Principal Financial Group Inc. now owns 11,530,742 shares of the basic materials company's stock worth $419,970,000 after purchasing an additional 4,180,623 shares during the last quarter. Carrhae Capital LLP bought a new stake in shares of Teck Resources in the first quarter worth about $46,478,000. Canada Pension Plan Investment Board grew its stake in shares of Teck Resources by 37.3% in the first quarter. Canada Pension Plan Investment Board now owns 3,715,016 shares of the basic materials company's stock worth $135,349,000 after purchasing an additional 1,009,545 shares during the last quarter. Wellington Management Group LLP grew its stake in shares of Teck Resources by 1,611.2% in the first quarter. Wellington Management Group LLP now owns 751,146 shares of the basic materials company's stock worth $27,358,000 after purchasing an additional 707,249 shares during the last quarter. Finally, Alliancebernstein L.P. grew its stake in shares of Teck Resources by 19.5% in the first quarter. Alliancebernstein L.P. now owns 4,189,902 shares of the basic materials company's stock worth $152,638,000 after purchasing an additional 683,836 shares during the last quarter. 78.06% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts have commented on the stock. Stifel Nicolaus assumed coverage on shares of Teck Resources in a report on Wednesday, July 9th. They issued a "hold" rating for the company. UBS Group upgraded shares of Teck Resources from a "neutral" rating to a "buy" rating in a report on Wednesday, September 3rd. Morgan Stanley lowered shares of Teck Resources from an "overweight" rating to an "equal weight" rating and raised their price objective for the stock from $42.00 to $44.00 in a report on Tuesday, July 15th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $41.00 price objective (down from $46.00) on shares of Teck Resources in a report on Friday, July 25th. Finally, Benchmark lowered their price objective on shares of Teck Resources from $55.00 to $48.00 and set a "buy" rating for the company in a report on Monday, July 28th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, Teck Resources has an average rating of "Moderate Buy" and a consensus price target of $56.88.

Teck Resources Stock Up 11.4%

Shares of TECK stock traded up $4.00 during trading hours on Tuesday, hitting $39.11. 41,718,620 shares of the company's stock traded hands, compared to its average volume of 3,896,735. The stock's fifty day simple moving average is $35.00 and its two-hundred day simple moving average is $36.47. Teck Resources Ltd has a 12-month low of $28.32 and a 12-month high of $54.13. The stock has a market cap of $18.79 billion, a price-to-earnings ratio of 102.92, a PEG ratio of 0.55 and a beta of 0.78. The company has a quick ratio of 2.45, a current ratio of 3.47 and a debt-to-equity ratio of 0.15.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last announced its quarterly earnings results on Thursday, July 24th. The basic materials company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.07. Teck Resources had a net margin of 2.51% and a return on equity of 3.91%. The company had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter last year, the firm earned $0.79 earnings per share. The firm's quarterly revenue was up 12.3% compared to the same quarter last year. On average, analysts expect that Teck Resources Ltd will post 1.53 EPS for the current year.

Teck Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 15th will be issued a $0.0918 dividend. This represents a $0.37 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Monday, September 15th. This is an increase from Teck Resources's previous quarterly dividend of $0.09. Teck Resources's dividend payout ratio (DPR) is presently 94.74%.

Teck Resources Company Profile

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen.