Ternium (NYSE:TX) Shares Cross Above 200-Day Moving Average - Here's Why

Key Points

• Ternium shares rose above their 200-day moving average, reaching $55.15 and trading near $54.49, compared with the long-term average of $47.39.
• Analyst sentiment is broadly positive: Ternium has a consensus rating of “Moderate Buy”, with a $54.50 average price target; JPMorgan raised its target to $67.50.
• Recent institutional buying increased, including a $134.1 million new stake from Donald Smith & Co.; institutional investors now own approximately 11.98% of the company.

Ternium S.A. (NYSE:TX - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $47.39 and traded as high as $55.15. Ternium shares last traded at $54.4860, with a volume of 266,631 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on TX shares. Weiss Ratings raised shares of Ternium from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 10th. Wall Street Zen upgraded shares of Ternium from a "buy" rating to a "strong-buy" rating in a report on Sunday, July 12th. Zacks Research raised Ternium from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 11th. JPMorgan Chase & Co. upped their price target on Ternium from $60.50 to $67.50 and gave the stock an "overweight" rating in a research note on Friday, September 4th. Finally, HSBC reaffirmed a "hold" rating and set a $55.00 price objective (up from $53.00) on shares of Ternium in a research report on Friday, August 21st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $54.50.

Ternium Trading Down 1.6%

The stock's 50 day moving average is $54.03 and its 200-day moving average is $47.39. The company has a market cap of $10.92 billion, a P/E ratio of 15.31, a PEG ratio of 0.16 and a beta of 1.25. The company has a current ratio of 2.58, a quick ratio of 1.43 and a debt-to-equity ratio of 0.14.

Ternium (NYSE:TX - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The basic materials company reported $1.80 earnings per share for the quarter. The business had revenue of $4.34 billion during the quarter. Ternium had a net margin of 4.37% and a return on equity of 4.26%. Research analysts anticipate that Ternium S.A. will post 6.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ternium

Several institutional investors and hedge funds have recently made changes to their positions in the company. Donald Smith & CO. Inc. purchased a new stake in Ternium during the 2nd quarter valued at $134,131,000. Militia Capital Management LLC purchased a new position in shares of Ternium in the first quarter worth $1,486,000. Engineers Gate Manager LP lifted its holdings in shares of Ternium by 496.8% during the second quarter. Engineers Gate Manager LP now owns 56,337 shares of the basic materials company's stock valued at $2,406,000 after purchasing an additional 46,897 shares in the last quarter. Amundi boosted its position in shares of Ternium by 19.9% during the first quarter. Amundi now owns 703,304 shares of the basic materials company's stock valued at $28,238,000 after buying an additional 116,813 shares during the last quarter. Finally, Wellington Management Group LLP bought a new stake in Ternium in the 2nd quarter worth about $5,704,000. Institutional investors own 11.98% of the company's stock.

Ternium Company Profile

Ternium SA NYSE: TX is a steel producer serving customers across the Americas. The company manufactures and distributes a broad range of steel products, including flat steel, long steel, slabs, billets, hot- and cold-rolled steel, galvanized steel, tinplate, rebar and wire rod.

Its products are used in a variety of industries, including automotive manufacturing, construction, appliances, energy, machinery and transportation. Ternium operates an integrated production network with steelmaking, rolling, finishing and distribution facilities, allowing it to supply both commodity and value-added steel products.

Ternium has operations and commercial activities in countries including Mexico, Argentina, Brazil, Colombia, the United States and several other Latin American markets.

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