Ero Copper (NYSE:ERO) Stock Falls 4.2% - Should You Sell?

Key Points

• Ero Copper shares fell 4.2% to about $31.53, with trading volume roughly 83% below the average session volume.
• Analyst sentiment remains generally positive but mixed: the stock has a “Moderate Buy” consensus rating and an average price target of $32.33, while several firms recently downgraded or maintained neutral ratings.
• The company recently 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 approximately 71.3% of the shares.

Ero Copper Corp. (NYSE:ERO - Get Free Report) shares fell 4.2% during trading on Wednesday. The stock traded as low as $31.11 and last traded at $31.5330. Approximately 248,594 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 1,435,951 shares. The stock had previously closed at $32.90.

Wall Street Analysts Forecast Growth

ERO has been the topic of several recent analyst reports. Scotiabank downgraded Ero Copper from a "sector outperform" rating to a "sector perform" rating in a research note on Tuesday, October 13th. Canadian Imperial Bank of Commerce reissued a "neutral" rating on shares of Ero Copper in a report on Wednesday, September 23rd. Bradesco Corretora lowered Ero Copper from an "outperform" rating to a "neutral" rating in a report on Wednesday, September 2nd. Weiss Ratings upgraded shares of Ero Copper from a "hold (c+)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Finally, TD Securities reaffirmed a "hold" rating on shares of Ero Copper in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $32.33.

Ero Copper Stock Performance

The stock has a market cap of $3.36 billion, a P/E ratio of 10.82, a PEG ratio of 0.27 and a beta of 1.27. The company has a fifty day moving average of $36.06 and a 200 day moving average of $30.86. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.30 and a quick ratio of 0.81.

Ero Copper (NYSE:ERO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.09. Ero Copper had a return on equity of 30.32% and a net margin of 29.79%. The firm had revenue of $284.30 million during the quarter, compared to analyst estimates of $277.64 million. On average, equities analysts predict that Ero Copper Corp. will post 4.28 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ERO. Kapitalo Investimentos Ltda grew its holdings in shares of Ero Copper by 0.5% in the 3rd quarter. Kapitalo Investimentos Ltda now owns 1,082,320 shares of the company's stock worth $39,710,000 after acquiring an additional 5,624 shares during the last quarter. Genesee Capital Advisors LLC purchased a new stake in shares of Ero Copper during the third quarter valued at $337,000. Kercheville Advisors LLC purchased a new stake in shares of Ero Copper during the third quarter valued at $295,000. TD Waterhouse Canada Inc. lifted its holdings in shares of Ero Copper by 881.8% during the third quarter. TD Waterhouse Canada Inc. now owns 113,421 shares of the company's stock valued at $4,043,000 after purchasing an additional 101,869 shares during the last quarter. Finally, Sanders Morris Harris LLC acquired a new position in shares of Ero Copper in the 3rd quarter valued at $807,000. Institutional investors own 71.30% of the company's stock.

About Ero Copper

Ero Copper Corp. is a Canadian-based mining company focused on the exploration, development and production of copper and associated minerals. Its shares trade under the symbol ERO on the New York Stock Exchange and the Toronto Stock Exchange.

The company's principal assets are in Brazil. Its Caraíba Operations in the state of Bahia include underground and open-pit copper mines, processing facilities and related infrastructure. Ero Copper also operates the Tucumã copper mine in the state of Pará, while advancing additional exploration and development opportunities in Brazil.

Ero Copper was established in 2016 and has built its business around operating and expanding its Brazilian mining portfolio.

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