Ero Copper (NYSE:ERO) Stock Price Up 6% - Should You Buy?

Key Points

• Ero Copper shares jumped 6% to about $36.77, outperforming the analysts’ average price target of $32.33 despite a consensus “Moderate Buy” rating.
• The company exceeded quarterly expectations, reporting $0.83 in EPS versus the $0.74 estimate and revenue of $284.3 million against the $277.64 million consensus.
• Institutional investors own 71.3% of Ero Copper, with several funds increasing their stakes; however, analyst sentiment remains mixed, with most ratings at “Hold.”

Ero Copper Corp. (NYSE:ERO - Get Free Report)'s stock price shot up 6% during mid-day trading on Tuesday . The company traded as high as $36.36 and last traded at $36.7690. Approximately 551,956 shares traded hands during trading, a decline of 62% from the average session volume of 1,460,820 shares. The stock had previously closed at $34.70.

Wall Street Analysts Forecast Growth

ERO has been the subject of several research analyst reports. Bank of America upgraded Ero Copper from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $30.00 to $34.00 in a report on Thursday, July 16th. TD Securities reiterated a "hold" rating on shares of Ero Copper in a report on Friday, August 7th. Jefferies Financial Group reissued a "hold" rating on shares of Ero Copper in a research report on Monday, July 6th. Bradesco Corretora cut shares of Ero Copper from an "outperform" rating to a "neutral" rating in a research report on Wednesday, September 2nd. Finally, Freedom Broker lowered shares of Ero Copper from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 3rd. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $32.33.

Ero Copper Stock Performance

The company has a market capitalization of $3.84 billion, a P/E ratio of 12.36, a price-to-earnings-growth ratio of 0.29 and a beta of 1.27. The company's 50 day moving average is $32.50 and its 200-day moving average is $29.38. 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 announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.83 earnings per share 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 business had revenue of $284.30 million for the quarter, compared to analysts' expectations of $277.64 million. Equities analysts anticipate that Ero Copper Corp. will post 3.96 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Engineers Gate Manager LP boosted its stake in Ero Copper by 0.8% in the 2nd quarter. Engineers Gate Manager LP now owns 37,573 shares of the company's stock worth $1,005,000 after purchasing an additional 285 shares in the last quarter. Corient Private Wealth LP increased its stake in Ero Copper by 4.0% during the 2nd quarter. Corient Private Wealth LP now owns 9,046 shares of the company's stock valued at $242,000 after purchasing an additional 348 shares in the last quarter. Amundi raised its holdings in Ero Copper by 85.8% in the second quarter. Amundi now owns 965,346 shares of the company's stock worth $25,823,000 after buying an additional 445,849 shares during the last quarter. Oakmont Investment Advisors Inc. purchased a new position in Ero Copper in the second quarter worth about $1,645,000. Finally, Van ECK Associates Corp lifted its stake in shares of Ero Copper by 22.9% in the second quarter. Van ECK Associates Corp now owns 111,171 shares of the company's stock worth $2,974,000 after buying an additional 20,698 shares in the last quarter. Institutional investors own 71.30% of the company's stock.

Ero Copper Company Profile

Ero Copper Corp. is a Canadian mining company focused on the exploration, development and production of copper and associated mineral products. The company's operations are located in Brazil, where it produces copper concentrate and may recover gold and other byproducts from its mineral deposits.

Ero Copper's principal assets include the Caraíba Operations in the state of Bahia and the Tucumã Project in the state of Pará. Caraíba is an established copper mining complex that includes underground and open-pit mines, processing facilities and related infrastructure.

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