Nexa Resources (NYSE:NEXA) Shares Gap Down - Here's Why

Key Points

• Nexa Resources shares fell 6.4%, opening at $13.54 versus the prior close of $14.25, amid trading volume of approximately 138,481 shares.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating and an average price target of $14.60.
• Nexa reported quarterly EPS of $0.64, missing the $0.71 consensus estimate, while revenue of $907.93 million slightly exceeded expectations; several hedge funds nevertheless initiated or increased positions in the company.

Nexa Resources S.A. (NYSE:NEXA - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $14.25, but opened at $13.54. Nexa Resources shares last traded at $13.5490, with a volume of 138,481 shares.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on NEXA. Weiss Ratings reissued a "hold (c)" rating on shares of Nexa Resources in a research note on Monday, July 20th. Citigroup raised their target price on Nexa Resources from $12.50 to $16.00 and gave the company a "neutral" rating in a research report on Wednesday, June 3rd. Scotiabank increased their price objective on Nexa Resources from $14.00 to $15.00 and gave the company a "sector perform" rating in a research note on Friday, August 28th. Morgan Stanley upped their target price on shares of Nexa Resources from $11.50 to $12.50 and gave the stock an "equal weight" rating in a report on Wednesday, July 8th. Finally, Wall Street Zen downgraded shares of Nexa Resources from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, July 28th. Six investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $14.60.

Nexa Resources Stock Down 6.4%

The firm has a market cap of $1.77 billion, a PE ratio of 6.38, a PEG ratio of 0.16 and a beta of 0.95. The company has a current ratio of 0.80, a quick ratio of 0.46 and a debt-to-equity ratio of 1.08. The firm has a 50 day moving average price of $13.69 and a 200-day moving average price of $13.23.

Nexa Resources (NYSE:NEXA - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.07). Nexa Resources had a return on equity of 20.25% and a net margin of 8.02%.The business had revenue of $907.93 million for the quarter, compared to analysts' expectations of $906.52 million. Research analysts forecast that Nexa Resources S.A. will post 2.59 EPS for the current fiscal year.

Hedge Funds Weigh In On Nexa Resources

Several hedge funds have recently made changes to their positions in the company. Engineers Gate Manager LP increased its position in shares of Nexa Resources by 83.2% during the second quarter. Engineers Gate Manager LP now owns 122,959 shares of the company's stock worth $1,505,000 after purchasing an additional 55,852 shares in the last quarter. NewEdge Advisors LLC acquired a new stake in shares of Nexa Resources in the 2nd quarter valued at about $203,000. Allianz Asset Management GmbH purchased a new position in Nexa Resources during the 2nd quarter worth approximately $3,630,000. Triumph Capital Management purchased a new position in Nexa Resources during the 2nd quarter worth approximately $395,000. Finally, BTG Pactual Asset Management US LLC acquired a new position in Nexa Resources during the second quarter worth approximately $176,000.

About Nexa Resources

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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