Teck Resources (NYSE:TECK) Shares Gap Down - What's Next?

Key Points

• Teck Resources shares fell sharply: The stock gapped down from a prior close of $70.34 to open at $65.61 and last traded near $64.94, a decline of about 6.7%.
• Analyst sentiment remains mixed: Six analysts rate the stock Buy and seven rate it Hold, producing an overall “Hold” consensus and an average price target of $62.25.
• Quarterly results exceeded expectations: Teck reported EPS of $1.35 versus the $0.95 consensus estimate and revenue of $2.54 billion, up 78.2% year over year. The company also declared a quarterly dividend of $0.125 per share, representing a 0.8% annualized yield.

Shares of Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK gapped down before the market opened on Thursday . The stock had previously closed at $70.34, but opened at $65.61. Teck Resources shares last traded at $64.94, with a volume of 1,121,178 shares.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on TECK. JPMorgan Chase & Co. upped their price objective on shares of Teck Resources from $46.00 to $47.00 and gave the company a "neutral" rating in a research note on Tuesday, July 28th. Wall Street Zen downgraded shares of Teck Resources from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 26th. Weiss Ratings upgraded shares of Teck Resources from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft upped their price target on shares of Teck Resources from $64.00 to $68.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Finally, Scotiabank reiterated a "sector perform" rating on shares of Teck Resources in a report on Monday, June 15th. Six investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $62.25.

Teck Resources Trading Down 6.7%

The stock has a market capitalization of $31.69 billion, a P/E ratio of 17.76, a P/E/G ratio of 2.59 and a beta of 0.94. The firm's 50 day moving average price is $63.49 and its 200 day moving average price is $60.23. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.12 and a quick ratio of 2.33.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last posted its earnings results on Thursday, July 23rd. The basic materials company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.40. Teck Resources had a return on equity of 10.42% and a net margin of 17.85%.The company had revenue of $2.54 billion for the quarter, compared to analysts' expectations of $2.38 billion. During the same period last year, the firm earned $0.38 earnings per share. Teck Resources's quarterly revenue was up 78.2% on a year-over-year basis. As a group, equities research analysts expect that Teck Resources Ltd will post 3.48 earnings per share for the current fiscal year.

Teck Resources Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be given a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, September 15th. Teck Resources's dividend payout ratio (DPR) is currently 9.76%.

Hedge Funds Weigh In On Teck Resources

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brown Brothers Harriman & Co. bought a new stake in Teck Resources in the fourth quarter valued at $25,000. Geneos Wealth Management Inc. boosted its stake in shares of Teck Resources by 117.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 561 shares of the basic materials company's stock valued at $29,000 after purchasing an additional 303 shares in the last quarter. Blue Trust Inc. raised its stake in Teck Resources by 411.8% in the first quarter. Blue Trust Inc. now owns 563 shares of the basic materials company's stock worth $29,000 after buying an additional 453 shares in the last quarter. Versant Capital Management Inc raised its stake in Teck Resources by 86.5% in the second quarter. Versant Capital Management Inc now owns 1,587 shares of the basic materials company's stock worth $94,000 after buying an additional 736 shares in the last quarter. Finally, Oslo Pensjonsforsikring AS bought a new position in Teck Resources in the first quarter worth about $83,000. Institutional investors own 78.06% of the company's stock.

About Teck Resources

Teck Resources Limited is a Canadian mining and metals company focused primarily on the exploration, development and production of base metals. Its principal products include copper, zinc and lead, along with associated by-products such as molybdenum, silver and germanium. Copper is an increasingly important part of Teck's business as the metal is used in electrical infrastructure, renewable energy systems, transportation and industrial applications.

Teck operates and develops mining assets in Canada, Chile and Peru.

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