Nexa Resources (NYSE:NEXA) Shares Gap Up - Still a Buy?

Key Points

• Nexa Resources shares jumped, opening at $12.87 versus a prior close of $12.08 and last trading near $13.08.
• Analysts have raised their price targets, but sentiment remains cautious: six rate the stock a Hold and one a Sell, resulting in an average “Reduce” rating and a $14.60 target.
• The company exceeded revenue expectations but missed quarterly EPS estimates, reporting $0.64 per share versus the $0.71 consensus; analysts expect full-year EPS of about $2.59.

Shares of Nexa Resources S.A. (NYSE:NEXA - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $12.08, but opened at $12.87. Nexa Resources shares last traded at $13.0750, with a volume of 343,560 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on NEXA. JPMorgan Chase & Co. raised their price objective on Nexa Resources from $7.50 to $15.50 and gave the company a "neutral" rating in a report on Friday, July 24th. Citigroup boosted their price target on Nexa Resources from $12.50 to $16.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 3rd. Bank of America upped their price target on shares of Nexa Resources from $12.00 to $14.00 and gave the stock an "underperform" rating in a research report on Thursday, July 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Nexa Resources in a research report on Monday, July 20th. Finally, Scotiabank raised their target price on shares of Nexa Resources from $14.00 to $15.00 and gave the stock a "sector perform" rating in a research note on Friday, August 28th. Six analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $14.60.

Nexa Resources Price Performance

The company has a 50 day moving average of $13.66 and a 200-day moving average of $13.26. The firm has a market capitalization of $1.72 billion, a P/E ratio of 6.20, a P/E/G ratio of 0.15 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.

Nexa Resources (NYSE:NEXA - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $0.71 by ($0.07). Nexa Resources had a net margin of 8.02% and a return on equity of 20.25%. The firm had revenue of $907.93 million during the quarter, compared to analyst estimates of $906.52 million. On average, sell-side analysts predict that Nexa Resources S.A. will post 2.59 EPS for the current year.

Hedge Funds Weigh In On Nexa Resources

Several institutional investors and hedge funds have recently modified their holdings of the business. Engineers Gate Manager LP increased its position in 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 acquiring an additional 55,852 shares during the period. NewEdge Advisors LLC acquired a new position in shares of Nexa Resources during the 2nd quarter worth approximately $203,000. Allianz Asset Management GmbH acquired a new position in shares of Nexa Resources during the 2nd quarter worth approximately $3,630,000. Triumph Capital Management bought a new position in shares of Nexa Resources during the second quarter worth approximately $395,000. Finally, BTG Pactual Asset Management US LLC acquired a new stake in shares of Nexa Resources in the second quarter valued at approximately $176,000.

Nexa Resources Company Profile

Nexa Resources SA is a global mining and metals company focused primarily on the exploration, mining, processing and production of zinc. The company also produces lead, silver, copper and related by-products, including sulfuric acid and specialty alloys, through its integrated mining and smelting operations.

Nexa operates mines and metallurgical facilities in Brazil and Peru, serving customers in the Americas and other international markets. Its assets include zinc mines such as Vazante and Aripuanã in Brazil and Cerro Lindo and El Porvenir in Peru, as well as zinc smelters including Cajamarquilla in Peru and facilities in Brazil.

The company traces its origins to the metals operations of Brazilian industrial group Votorantim and adopted the Nexa Resources name in connection with its 2017 public listing.

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