Nexa Resources (NYSE:NEXA) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Unusually-high trading volume: 930,159 shares traded (up 5% vs. the prior session) as the stock jumped about 7.4% to roughly $16 from a $14.87 close.
• Analyst sentiment is mixed — seven analysts rate the stock Hold and the MarketBeat consensus price target is $9.74, well below the current share price.
• Company fundamentals showed an earnings beat (EPS $0.60 vs. $0.45 estimate; revenue $903M vs. $823M estimate) and Nexa declared a special dividend of $0.1321 payable August 11.

Nexa Resources S.A. (NYSE:NEXA - Get Free Report) shares saw strong trading volume on Friday . 930,159 shares changed hands during trading, an increase of 5% from the previous session's volume of 888,507 shares.The stock last traded at $16.0480 and had previously closed at $14.87.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Citigroup raised their price target on shares of Nexa Resources from $11.00 to $12.50 and gave the company a "neutral" rating in a research report on Tuesday. Zacks Research lowered shares of Nexa Resources from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 31st. Scotiabank dropped their price target on shares of Nexa Resources to $14.00 and set a "sector perform" rating on the stock in a research report on Monday, March 23rd. Morgan Stanley upgraded shares of Nexa Resources from an "underweight" rating to an "equal weight" rating in a research report on Thursday, April 9th. Finally, Wall Street Zen upgraded shares of Nexa Resources from a "buy" rating to a "strong-buy" rating in a research report on Sunday, March 1st. Seven investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $9.74.

Nexa Resources Trading Up 7.4%

The company has a debt-to-equity ratio of 1.28, a current ratio of 0.87 and a quick ratio of 0.58. The firm has a market capitalization of $2.12 billion, a PE ratio of 15.97, a P/E/G ratio of 0.15 and a beta of 0.62. The company's fifty day simple moving average is $11.47 and its 200-day simple moving average is $9.17.

Nexa Resources (NYSE:NEXA - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.15. The business had revenue of $903.00 million for the quarter, compared to the consensus estimate of $823.27 million. Nexa Resources had a net margin of 4.42% and a return on equity of 11.81%. As a group, sell-side analysts expect that Nexa Resources S.A. will post 1.03 earnings per share for the current fiscal year.

Nexa Resources Dividend Announcement

The firm also recently declared a special dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, July 28th will be paid a $0.1321 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. Nexa Resources's dividend payout ratio (DPR) is currently 13.00%.

Hedge Funds Weigh In On Nexa Resources

Several hedge funds and other institutional investors have recently modified their holdings of NEXA. Assenagon Asset Management S.A. purchased a new position in shares of Nexa Resources in the third quarter worth about $57,000. GSA Capital Partners LLP lifted its stake in shares of Nexa Resources by 7.5% in the third quarter. GSA Capital Partners LLP now owns 35,753 shares of the company's stock worth $178,000 after buying an additional 2,504 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Nexa Resources by 3.8% in the third quarter. Dimensional Fund Advisors LP now owns 732,176 shares of the company's stock worth $3,654,000 after buying an additional 26,829 shares in the last quarter. Citadel Advisors LLC lifted its stake in shares of Nexa Resources by 142.4% in the third quarter. Citadel Advisors LLC now owns 60,287 shares of the company's stock worth $301,000 after buying an additional 35,411 shares in the last quarter. Finally, Millennium Management LLC lifted its stake in shares of Nexa Resources by 124.1% in the third quarter. Millennium Management LLC now owns 73,190 shares of the company's stock worth $365,000 after buying an additional 40,535 shares in the last quarter.

About Nexa Resources

Nexa Resources SA is a Brazil-based metals and mining company with a primary focus on zinc and copper. Listed on the New York Stock Exchange under the ticker NEXA, the firm develops, extracts and processes mineral resources for industrial applications worldwide. Headquartered in São Paulo, Brazil, Nexa is a leading participant in Latin America’s mining sector with a diversified portfolio of upstream and downstream operations.

The company’s operations span multiple mining and smelting complexes in Brazil’s Minas Gerais and Mato Grosso regions, as well as in Peru’s coastal and Andean zones.

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