Nexa Resources (NYSE:NEXA) Shares Gap Up Following Analyst Upgrade

Key Points

• Morgan Stanley upgrade sent Nexa shares higher premarket — the stock opened at $11.79 versus the prior close of $11.27 and last traded around $11.50 on volume of 122,124 shares.
• Nexa beat quarterly estimates, reporting $0.60 EPS versus $0.45 expected and $903M revenue versus $823.27M, and announced a special dividend of $0.1321 payable Aug. 11 (ex-dividend July 28).
• Analyst coverage is mixed: MarketBeat shows a consensus "Hold" with an average price target of $8.87, even as several institutional investors (Sagil, Marshall Wace, Renaissance, Dimensional) have recently added or increased stakes.

Shares of Nexa Resources S.A. (NYSE:NEXA - Get Free Report) gapped up before the market opened on Thursday after Morgan Stanley upgraded the stock from an underweight rating to an equal weight rating. The stock had previously closed at $11.27, but opened at $11.79. Nexa Resources shares last traded at $11.50, with a volume of 122,124 shares traded.

Several other research firms have also recently weighed in on NEXA. Wall Street Zen upgraded Nexa Resources from a "buy" rating to a "strong-buy" rating in a research note on Sunday, March 1st. JPMorgan Chase & Co. boosted their price objective on Nexa Resources from $7.00 to $7.50 and gave the company a "neutral" rating in a research note on Thursday, February 26th. Zacks Research cut Nexa Resources from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 31st. Weiss Ratings reiterated a "hold (c-)" rating on shares of Nexa Resources in a research note on Monday, December 29th. Finally, Citigroup reduced their price objective on Nexa Resources from $13.00 to $11.00 and set a "neutral" rating for the company in a research note on Thursday, March 26th. Eight research analysts have rated the stock with a Hold rating, According to MarketBeat.com, Nexa Resources presently has a consensus rating of "Hold" and an average price target of $8.87.

Hedge Funds Weigh In On Nexa Resources

Several large investors have recently added to or reduced their stakes in the business. Sagil Capital LLP purchased a new position in Nexa Resources during the fourth quarter worth about $11,651,000. Marshall Wace LLP purchased a new position in shares of Nexa Resources in the 4th quarter worth about $8,653,000. Dimensional Fund Advisors LP lifted its position in Nexa Resources by 19.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 878,227 shares of the company's stock valued at $7,774,000 after buying an additional 146,051 shares in the last quarter. Renaissance Technologies LLC lifted its position in Nexa Resources by 120.8% during the fourth quarter. Renaissance Technologies LLC now owns 852,800 shares of the company's stock valued at $7,547,000 after buying an additional 466,500 shares in the last quarter. Finally, Walleye Capital LLC purchased a new stake in shares of Nexa Resources during the 4th quarter valued at about $4,628,000.

Nexa Resources Trading Up 2.0%

The stock has a market cap of $1.52 billion, a price-to-earnings ratio of 11.49, a price-to-earnings-growth ratio of 0.14 and a beta of 0.62. The business has a 50 day simple moving average of $11.47 and a two-hundred day simple moving average of $8.87. The company has a current ratio of 0.87, a quick ratio of 0.58 and a debt-to-equity ratio of 1.28.

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

Nexa Resources Announces Dividend

The business also recently announced a special dividend, which will be paid on Tuesday, August 11th. Investors of record on Tuesday, July 28th will be issued a $0.1321 dividend. The ex-dividend date is Tuesday, July 28th. Nexa Resources's payout ratio is presently 10.00%.

Nexa Resources Company Profile

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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