Nexa Resources (NYSE:NEXA) Stock Price Up 15.3% - Should You Buy?

Key Points

• Shares jumped 15.3% during mid-day trading to about $13.77 on Wednesday, even as volume was roughly 66% below the average session level.
• Analysts are mixed but the consensus is a Hold with an average price target of $9.12, though some firms have recently upgraded coverage (Citigroup raised its target to $12.50; Wall Street Zen to "strong-buy").
• Nexa beat quarterly expectations (EPS $0.60 vs $0.45 expected; revenue $903M vs $823M expected) and announced a special dividend of $0.1321 payable on Aug 11.

Nexa Resources S.A. (NYSE:NEXA - Get Free Report)'s share price traded up 15.3% during mid-day trading on Wednesday . The stock traded as high as $12.23 and last traded at $13.7720. 246,231 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 716,854 shares. The stock had previously closed at $11.94.

Analysts Set New Price Targets

NEXA has been the subject of a number of research reports. Weiss Ratings reissued a "hold (c-)" rating on shares of Nexa Resources in a report on Monday, December 29th. Citigroup boosted their price target on Nexa Resources from $11.00 to $12.50 and gave the company a "neutral" rating in a research note on Tuesday. Wall Street Zen upgraded Nexa Resources from a "buy" rating to a "strong-buy" rating in a research report on Sunday, March 1st. Zacks Research cut Nexa Resources from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 31st. Finally, Morgan Stanley raised Nexa Resources from an "underweight" rating to an "equal weight" rating in a research report on Thursday, April 9th. Eight research analysts have rated the stock with a Hold rating, According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $9.12.

Nexa Resources Stock Up 18.0%

The company has a market cap of $1.87 billion, a P/E ratio of 14.12, a PEG ratio of 0.14 and a beta of 0.62. 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 business's 50 day moving average price is $11.37 and its 200-day moving average price is $9.09.

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

Nexa Resources Announces Dividend

The firm also recently declared 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 of this dividend is Tuesday, July 28th. Nexa Resources's payout ratio is currently 10.00%.

Institutional Investors Weigh In On Nexa Resources

A number of hedge funds have recently added to or reduced their stakes in NEXA. Hsbc Holdings PLC raised its stake in shares of Nexa Resources by 47.0% in the fourth quarter. Hsbc Holdings PLC now owns 16,454 shares of the company's stock worth $145,000 after acquiring an additional 5,263 shares during the last quarter. XTX Topco Ltd bought a new position in Nexa Resources in the 4th quarter valued at $645,000. Susquehanna Portfolio Strategies LLC bought a new position in Nexa Resources in the fourth quarter valued at about $88,000. Quadrature Capital Ltd bought a new position in shares of Nexa Resources in the 4th quarter valued at about $394,000. Finally, Millennium Management LLC boosted its stake in Nexa Resources by 249.4% in the fourth quarter. Millennium Management LLC now owns 255,757 shares of the company's stock valued at $2,263,000 after acquiring an additional 182,567 shares during the last quarter.

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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