Ero Copper (NYSE:ERO) Shares Gap Up - Still a Buy?

Key Points

• Ero Copper shares jumped, opening at $36.83 after closing at $34.90 and later trading near $38.41, with 272,562 shares changing hands.
• Analyst sentiment remains cautious: the stock carries a consensus “Hold” rating and a $32.33 average price target, below its current trading level, despite some analysts maintaining Buy or Strong Buy ratings.
• The company exceeded quarterly expectations, reporting $0.83 EPS versus the $0.74 consensus and $284.3 million in revenue versus $277.64 million expected; institutional investors own 71.3% of the shares.

Ero Copper Corp. (NYSE:ERO - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $34.90, but opened at $36.83. Ero Copper shares last traded at $38.4140, with a volume of 272,562 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Bradesco Corretora cut Ero Copper from an "outperform" rating to a "neutral" rating in a research note on Wednesday, September 2nd. Bank of America upgraded Ero Copper from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $30.00 to $34.00 in a research report on Thursday, July 16th. Wall Street Zen cut Ero Copper from a "buy" rating to a "hold" rating in a report on Saturday, August 29th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Ero Copper in a research report on Tuesday, September 1st. Finally, Zacks Research downgraded Ero Copper from a "hold" rating to a "strong sell" rating in a research report on Monday, August 17th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $32.33.

Ero Copper Stock Performance

The company's 50-day simple moving average is $30.66 and its 200-day simple moving average is $29.20. The stock has a market capitalization of $4.09 billion, a price-to-earnings ratio of 13.16, a PEG ratio of 0.28 and a beta of 1.27. The company has a current ratio of 1.30, a quick ratio of 0.81 and a debt-to-equity ratio of 0.50.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. FIL Ltd increased its stake in shares of Ero Copper by 74.1% in the fourth quarter. FIL Ltd now owns 11,670,422 shares of the company's stock valued at $330,161,000 after buying an additional 4,966,427 shares during the period. Invesco Ltd. raised its position in shares of Ero Copper by 10.7% during the fourth quarter. Invesco Ltd. now owns 2,827,385 shares of the company's stock worth $79,987,000 after acquiring an additional 273,470 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Ero Copper by 77.6% in the fourth quarter. Vanguard Group Inc. now owns 2,546,856 shares of the company's stock worth $72,051,000 after acquiring an additional 1,112,428 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Ero Copper by 11.1% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,507,087 shares of the company's stock worth $50,794,000 after acquiring an additional 250,303 shares during the period. Finally, Cape Ann Asset Management Ltd lifted its stake in shares of Ero Copper by 13.5% in the first quarter. Cape Ann Asset Management Ltd now owns 1,949,128 shares of the company's stock worth $51,983,000 after acquiring an additional 231,485 shares during the period. 71.30% of the stock is owned by institutional investors and hedge funds.

Ero Copper Company Profile

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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