Short Interest in Teck Resources Ltd (NYSE:TECK) Drops By 30.0%

Key Points

• Short interest in Teck Resources Ltd dropped by 30.0%, with 8,850,000 shares short sold as of September 30, reflecting a decrease from the previous total of 12,640,000 shares.
• Teck Resources recently increased its quarterly dividend to $0.125 per share, up from $0.09, indicating a commitment to returning value to shareholders.
• In its latest earnings report, Teck Resources beat EPS expectations by reporting $0.55 per share against the consensus estimate of $0.39, although revenue fell short at $2.43 billion compared to expectations of $2.93 billion.

Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK was the recipient of a significant drop in short interest in September. As of September 30th, there was short interest totaling 8,850,000 shares, a drop of 30.0% from the September 15th total of 12,640,000 shares. Based on an average trading volume of 5,740,000 shares, the days-to-cover ratio is currently 1.5 days. Approximately 1.9% of the company's stock are short sold. Approximately 1.9% of the company's stock are short sold. Based on an average trading volume of 5,740,000 shares, the days-to-cover ratio is currently 1.5 days.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. B. Riley downgraded Teck Resources from a "buy" rating to a "neutral" rating in a report on Monday, July 28th. Morgan Stanley downgraded Teck Resources from an "overweight" rating to an "equal weight" rating and lifted their price objective for the stock from $42.00 to $44.00 in a report on Tuesday, July 15th. Cibc World Mkts downgraded Teck Resources from a "strong-buy" rating to a "hold" rating in a report on Friday, July 25th. Scotiabank reiterated an "outperform" rating on shares of Teck Resources in a report on Wednesday, September 10th. Finally, Benchmark reiterated a "buy" rating on shares of Teck Resources in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $54.00.

Teck Resources Stock Performance

Shares of Teck Resources stock traded up $0.30 during trading hours on Thursday, reaching $42.47. 2,921,762 shares of the stock traded hands, compared to its average volume of 4,276,459. The company has a 50 day moving average price of $38.78 and a 200 day moving average price of $37.01. The firm has a market capitalization of $20.40 billion, a price-to-earnings ratio of 111.77, a P/E/G ratio of 0.62 and a beta of 0.92. Teck Resources has a one year low of $28.32 and a one year high of $51.34. The company has a quick ratio of 2.45, a current ratio of 3.47 and a debt-to-equity ratio of 0.15.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last released its quarterly earnings results on Wednesday, October 22nd. The basic materials company reported $0.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.16. The business had revenue of $2.43 billion during the quarter, compared to the consensus estimate of $2.93 billion. Teck Resources had a return on equity of 3.91% and a net margin of 2.51%.The business's quarterly revenue was up 18.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.60 EPS. On average, equities research analysts expect that Teck Resources will post 1.53 earnings per share for the current fiscal year.

Teck Resources Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 15th will be paid a dividend of $0.125 per share. The ex-dividend date is Monday, December 15th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Teck Resources's previous quarterly dividend of $0.09. Teck Resources's dividend payout ratio is presently 94.74%.

Institutional Investors Weigh In On Teck Resources

A number of large investors have recently made changes to their positions in TECK. Norges Bank bought a new stake in shares of Teck Resources during the 2nd quarter valued at about $437,657,000. 1832 Asset Management L.P. grew its stake in shares of Teck Resources by 1,555.9% during the 2nd quarter. 1832 Asset Management L.P. now owns 5,738,457 shares of the basic materials company's stock valued at $231,719,000 after purchasing an additional 5,391,907 shares during the period. Principal Financial Group Inc. grew its stake in shares of Teck Resources by 56.9% during the 1st quarter. Principal Financial Group Inc. now owns 11,530,742 shares of the basic materials company's stock valued at $419,970,000 after purchasing an additional 4,180,623 shares during the period. Canoe Financial LP bought a new stake in shares of Teck Resources during the 2nd quarter valued at about $97,536,000. Finally, Picton Mahoney Asset Management purchased a new position in shares of Teck Resources during the 2nd quarter valued at about $83,322,000. 78.06% of the stock is currently owned by institutional investors.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen.

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