Teck Resources (NYSE:TECK) Downgraded to Strong Sell Rating by Veritas

Key Points

• Teck Resources was downgraded from a "hold" to a "strong sell" rating by Veritas, following several other downgrades by various analysts.
• The company's recent quarterly earnings showed a net margin of 2.51% and a revenue of $1.49 billion, which is lower than the consensus estimate of $2.25 billion.
• Teck Resources has a market cap of $21 billion and an average target price of $54.00, with 78.06% of the stock held by institutional investors and hedge funds.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK was downgraded by stock analysts at Veritas from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other analysts also recently commented on the stock. CIBC downgraded shares of Teck Resources from a "sector outperform" rating to a "neutral" rating in a research report on Friday, July 25th. Morgan Stanley downgraded shares of Teck Resources from an "overweight" rating to an "equal weight" rating and upped their price target for the company from $42.00 to $44.00 in a research report on Tuesday, July 15th. Canaccord Genuity Group downgraded shares of Teck Resources from a "buy" rating to a "hold" rating in a research report on Wednesday, October 8th. Citigroup reiterated a "neutral" rating on shares of Teck Resources in a research report on Wednesday, October 8th. Finally, Cibc World Mkts downgraded shares of Teck Resources from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Teck Resources presently has an average rating of "Hold" and a consensus target price of $54.00.

Teck Resources Stock Up 1.1%

TECK stock opened at $43.72 on Tuesday. The company has a fifty day moving average price of $37.72 and a 200 day moving average price of $36.72. Teck Resources has a 12 month low of $28.32 and a 12 month high of $51.48. The company has a market cap of $21.00 billion, a price-to-earnings ratio of 115.06, a price-to-earnings-growth ratio of 0.61 and a beta of 0.92. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.47 and a quick ratio of 2.45.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last released its quarterly earnings results on Thursday, July 24th. The basic materials company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.20 by $0.07. Teck Resources had a net margin of 2.51% and a return on equity of 3.91%. The firm had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same quarter in the prior year, the firm earned $0.79 EPS. Teck Resources's revenue for the quarter was up 12.3% on a year-over-year basis. Sell-side analysts expect that Teck Resources will post 1.53 earnings per share for the current year.

Hedge Funds Weigh In On Teck Resources

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. CWM LLC grew its stake in shares of Teck Resources by 22.7% during the 3rd quarter. CWM LLC now owns 2,078 shares of the basic materials company's stock worth $91,000 after purchasing an additional 384 shares during the period. Canoe Financial LP grew its stake in shares of Teck Resources by 38.9% during the 3rd quarter. Canoe Financial LP now owns 3,348,736 shares of the basic materials company's stock worth $146,870,000 after purchasing an additional 938,702 shares during the period. Heathbridge Capital Management Ltd. grew its stake in shares of Teck Resources by 64.1% during the 3rd quarter. Heathbridge Capital Management Ltd. now owns 234,050 shares of the basic materials company's stock worth $10,261,000 after purchasing an additional 91,450 shares during the period. Vontobel Holding Ltd. grew its stake in shares of Teck Resources by 12.9% during the 3rd quarter. Vontobel Holding Ltd. now owns 117,703 shares of the basic materials company's stock worth $5,162,000 after purchasing an additional 13,408 shares during the period. Finally, Net Worth Advisory Group acquired a new position in shares of Teck Resources during the 3rd quarter worth $410,000. 78.06% of the stock is owned by institutional investors and hedge funds.

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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