Teck Resources (NYSE:TECK) Shares Gap Up on Analyst Upgrade

Key Points

• Teck Resources shares jumped significantly after Deutsche Bank upgraded the stock from a hold to a buy rating, with a new price target of $42.00.
• Institutional investors have heavily invested in Teck Resources, with Norges Bank acquiring a new position worth approximately $437.7 million in the second quarter.
• The company recently increased its quarterly dividend to $0.0918 per share, reflecting a positive change from their previous quarterly dividend of $0.09.

Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK gapped up before the market opened on Tuesday after Deutsche Bank Aktiengesellschaft upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $35.11, but opened at $40.65. Deutsche Bank Aktiengesellschaft now has a $42.00 price target on the stock. Teck Resources shares last traded at $39.99, with a volume of 15,226,024 shares traded.

Several other equities research analysts have also recently weighed in on the company. Desjardins cut Teck Resources from a "buy" rating to a "hold" rating in a research note on Friday, July 18th. Cibc World Mkts cut Teck Resources from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 25th. Wall Street Zen raised Teck Resources from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Royal Bank Of Canada reduced their price objective on Teck Resources from $82.00 to $67.00 and set an "outperform" rating on the stock in a research note on Friday, July 25th. Finally, Morgan Stanley lowered Teck Resources from an "overweight" rating to an "equal weight" rating and boosted their target price for the company from $42.00 to $44.00 in a research report on Tuesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $56.88.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Sequoia Financial Advisors LLC boosted its position in shares of Teck Resources by 5.6% during the first quarter. Sequoia Financial Advisors LLC now owns 10,354 shares of the basic materials company's stock valued at $377,000 after buying an additional 545 shares during the period. Golden State Wealth Management LLC boosted its holdings in shares of Teck Resources by 7,560.0% in the first quarter. Golden State Wealth Management LLC now owns 1,149 shares of the basic materials company's stock valued at $42,000 after purchasing an additional 1,134 shares during the period. Cetera Investment Advisers boosted its holdings in shares of Teck Resources by 20.9% in the first quarter. Cetera Investment Advisers now owns 69,885 shares of the basic materials company's stock valued at $2,546,000 after purchasing an additional 12,092 shares during the period. Oppenheimer Asset Management Inc. boosted its holdings in shares of Teck Resources by 22.6% in the first quarter. Oppenheimer Asset Management Inc. now owns 12,141 shares of the basic materials company's stock valued at $442,000 after purchasing an additional 2,240 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in shares of Teck Resources by 13,171.4% in the first quarter. GAMMA Investing LLC now owns 3,716 shares of the basic materials company's stock valued at $135,000 after purchasing an additional 3,688 shares during the period. Hedge funds and other institutional investors own 78.06% of the company's stock.

Teck Resources Stock Up 0.6%

The company has a debt-to-equity ratio of 0.15, a current ratio of 3.47 and a quick ratio of 2.45. The stock has a market cap of $20.13 billion, a PE ratio of 110.29, a price-to-earnings-growth ratio of 0.62 and a beta of 0.78. The business has a fifty day moving average of $35.00 and a 200-day moving average of $36.48.

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

Teck Resources Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 15th will be issued a $0.0918 dividend. The ex-dividend date is Monday, September 15th. This is a positive change from Teck Resources's previous quarterly dividend of $0.09. This represents a $0.37 dividend on an annualized basis and a dividend yield of 0.9%. Teck Resources's dividend payout ratio (DPR) is presently 94.74%.

Teck Resources Company Profile

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.