Ero Copper (NYSE:ERO) Shares Gap Down - Should You Sell?

Key Points

• Ero Copper shares fell sharply at the open, dropping from a previous close of $38.25 to $35.75 and last trading near $35.26.
• Analyst sentiment is mixed but leans cautious: the stock has an average rating of “Hold” and a consensus price target of $32.33, below its recent trading level.
• The company reported stronger-than-expected quarterly results, with EPS of $0.83 versus the $0.74 estimate and revenue of $284.3 million versus $277.64 million expected; institutional investors own 71.3% of the shares.

Ero Copper Corp. (NYSE:ERO - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $38.25, but opened at $35.75. Ero Copper shares last traded at $35.2550, with a volume of 354,278 shares.

Wall Street Analysts Forecast Growth

ERO has been the topic of several research reports. TD Securities reaffirmed a "hold" rating on shares of Ero Copper in a research report on Friday, August 7th. Bradesco Corretora lowered Ero Copper from an "outperform" rating to a "neutral" rating in a report on Wednesday, September 2nd. Wall Street Zen downgraded Ero Copper from a "buy" rating to a "hold" rating in a report on Saturday, August 29th. Jefferies Financial Group restated a "hold" rating on shares of Ero Copper in a research note on Monday, July 6th. Finally, Zacks Research cut shares of Ero Copper from a "hold" rating to a "strong sell" rating in a research note on Monday, August 17th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $32.33.

Ero Copper Price Performance

The company has a fifty day simple moving average of $31.14 and a two-hundred day simple moving average of $29.32. The stock has a market capitalization of $3.69 billion, a price-to-earnings ratio of 11.84, a PEG ratio of 0.31 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.81 and a current ratio of 1.30.

Ero Copper (NYSE:ERO - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.09. The company had revenue of $284.30 million for the quarter, compared to analyst estimates of $277.64 million. Ero Copper had a return on equity of 30.32% and a net margin of 29.79%. As a group, equities research analysts expect that Ero Copper Corp. will post 3.96 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Ero Copper

Several hedge funds and other institutional investors have recently modified their holdings of ERO. Caitong International Asset Management Co. Ltd bought a new stake in shares of Ero Copper during the 4th quarter worth $38,000. PenderFund Capital Management Ltd. bought a new position in shares of Ero Copper in the second quarter worth about $39,000. Kestra Advisory Services LLC acquired a new stake in shares of Ero Copper in the 4th quarter valued at approximately $56,000. Banque Cantonale Vaudoise bought a new stake in shares of Ero Copper during the 3rd quarter valued at approximately $111,000. Finally, Barclays PLC lifted its stake in Ero Copper by 1,243.1% in the 4th quarter. Barclays PLC now owns 7,508 shares of the company's stock valued at $212,000 after purchasing an additional 6,949 shares during the last quarter. Institutional investors own 71.30% of the company's stock.

About Ero Copper

Ero Copper Corp NYSE: ERO is a Canada-based natural resource company focused on the production of copper concentrate from its Brazilian operations. The company’s flagship asset is the Vale do Curaçá mining complex in the state of Bahia, which includes multiple underground mines and a centralized processing facility. Ero Copper’s primary product is copper concentrate, which is sold to smelters and end users around the world.

The Vale do Curaçá complex comprises the Pilar and Surubim underground mines, supported by a fully integrated processing plant.

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