Short Interest in Nexa Resources S.A. (NYSE:NEXA) Rises By 96.5%

Key Points

• Short interest in Nexa Resources rose by 96.5% to 256,195 shares as of March 31, equal to about 0.2% of the float and a short-interest ratio of 0.5 days.
• Several institutions added or increased stakes—Sagil Capital and Marshall Wace initiated sizable positions, while Renaissance Technologies boosted its stake by 120.8% (adding 466,500 shares) and Dimensional Fund Advisors raised its holding by 19.9%.
• Nexa beat quarterly estimates (EPS $0.60 vs. $0.45; revenue $903M vs. $823M) and announced a special dividend, but analysts maintain a consensus Hold rating with a $8.87 target below the current share price (~$11.88).

Nexa Resources S.A. (NYSE:NEXA - Get Free Report) was the recipient of a large growth in short interest during the month of March. As of March 31st, there was short interest totaling 256,195 shares, a growth of 96.5% from the March 15th total of 130,378 shares. Based on an average daily volume of 525,133 shares, the short-interest ratio is currently 0.5 days. Approximately 0.2% of the company's shares are short sold.

Hedge Funds Weigh In On Nexa Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sagil Capital LLP acquired a new position in Nexa Resources in the 4th quarter worth $11,651,000. Marshall Wace LLP acquired a new position in Nexa Resources in the 4th quarter worth $8,653,000. Dimensional Fund Advisors LP boosted its stake in Nexa Resources by 19.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 878,227 shares of the company's stock worth $7,774,000 after purchasing an additional 146,051 shares during the period. Renaissance Technologies LLC boosted its stake in Nexa Resources by 120.8% in the 4th quarter. Renaissance Technologies LLC now owns 852,800 shares of the company's stock worth $7,547,000 after purchasing an additional 466,500 shares during the period. Finally, Walleye Capital LLC acquired a new position in Nexa Resources in the 4th quarter worth $4,628,000.

Nexa Resources Price Performance

NEXA opened at $11.88 on Monday. The company has a quick ratio of 0.58, a current ratio of 0.87 and a debt-to-equity ratio of 1.28. Nexa Resources has a 12 month low of $4.44 and a 12 month high of $14.94. The company has a fifty day simple moving average of $11.41 and a 200 day simple moving average of $8.99. The stock has a market cap of $1.57 billion, a P/E ratio of 11.88, a P/E/G ratio of 0.14 and a beta of 0.62.

Nexa Resources (NYSE:NEXA - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.15. Nexa Resources had a net margin of 4.42% and a return on equity of 11.81%. The business had revenue of $903.00 million during the quarter, compared to analysts' expectations of $823.27 million. On average, research analysts expect that Nexa Resources will post 1.03 EPS for the current year.

Nexa Resources Announces Dividend

The business also recently announced a special dividend, which will be paid on Tuesday, August 11th. Investors of record on Tuesday, July 28th will be paid a $0.1321 dividend. The ex-dividend date of this dividend is Tuesday, July 28th. Nexa Resources's dividend payout ratio is presently 10.00%.

Analysts Set New Price Targets

Several research firms recently weighed in on NEXA. Zacks Research cut shares of Nexa Resources from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 31st. Scotiabank dropped their target price on shares of Nexa Resources to $14.00 and set a "sector perform" rating for the company in a research report on Monday, March 23rd. Weiss Ratings reiterated a "hold (c-)" rating on shares of Nexa Resources in a research report on Monday, December 29th. Citigroup dropped their target price on shares of Nexa Resources from $13.00 to $11.00 and set a "neutral" rating for the company in a research report on Thursday, March 26th. Finally, Morgan Stanley upgraded shares of Nexa Resources from an "underweight" rating to an "equal weight" rating in a research report on Thursday. Eight analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $8.87.

Nexa Resources Company Profile

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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