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

Key Points

• Nexa Resources shares jumped 2.7%, opening at $13.33 versus a prior close of $12.88, before trading near $13.23.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $14.94; Morgan Stanley upgraded the stock to “Overweight,” while Zacks Research downgraded it to “Hold.”
• The company’s latest quarterly results showed $0.64 in EPS, below the $0.71 estimate, while revenue of $907.93 million slightly exceeded expectations.

Nexa Resources S.A. (NYSE:NEXA - Get Free Report)'s stock price gapped up prior to trading on Tuesday. The stock had previously closed at $12.88, but opened at $13.33. Nexa Resources shares last traded at $13.23, with a volume of 116,401 shares.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Zacks Research lowered Nexa Resources from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 8th. Scotiabank lifted their price target on Nexa Resources from $14.00 to $15.00 and gave the company a "sector perform" rating in a report on Friday, August 28th. Morgan Stanley raised Nexa Resources from an "equal weight" rating to an "overweight" rating and set a $14.20 price target for the company in a research report on Tuesday, October 6th. Bank of America boosted their price target on Nexa Resources from $12.00 to $14.00 and gave the stock an "underperform" rating in a research report on Thursday, July 9th. Finally, Wall Street Zen cut Nexa Resources from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $14.94.

Nexa Resources Trading Up 2.7%

The stock has a 50-day simple moving average of $13.48 and a 200 day simple moving average of $13.44. 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 company has a market cap of $1.75 billion, a price-to-earnings ratio of 6.33, a PEG ratio of 0.16 and a beta of 0.94.

Nexa Resources (NYSE:NEXA - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $0.71 by ($0.07). The firm had revenue of $907.93 million during the quarter, compared to analysts' expectations of $906.52 million. Nexa Resources had a net margin of 8.02% and a return on equity of 20.25%. As a group, equities research analysts predict that Nexa Resources S.A. will post 2.54 EPS for the current fiscal year.

Institutional Trading of Nexa Resources

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Financial Management Professionals Inc. purchased a new position in Nexa Resources in the 2nd quarter worth approximately $28,000. Royal Bank of Canada grew its position in shares of Nexa Resources by 173.8% in the first quarter. Royal Bank of Canada now owns 4,386 shares of the company's stock valued at $47,000 after purchasing an additional 2,784 shares in the last quarter. Hsbc Holdings PLC grew its position in shares of Nexa Resources by 17.5% in the first quarter. Hsbc Holdings PLC now owns 19,333 shares of the company's stock valued at $203,000 after purchasing an additional 2,879 shares in the last quarter. Quantbot Technologies LP acquired a new stake in shares of Nexa Resources in the second quarter valued at approximately $105,000. Finally, World Equity Group Inc. acquired a new stake in shares of Nexa Resources in the second quarter valued at approximately $161,000.

About Nexa Resources

Nexa Resources SA is a mining and metals company focused primarily on the exploration, extraction, processing and production of zinc, lead, copper and silver. The company also produces sulfuric acid and other related byproducts and specialty metals through its integrated mining and smelting operations.

Nexa operates mines and metallurgical facilities in Brazil and Peru, serving industrial customers and markets that use zinc and other base metals in applications such as galvanizing, construction, transportation, infrastructure and manufacturing.

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