Teck Resources (NYSE:TECK) Shares Gap Up After 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.

TECK has been the subject of several other research reports. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $41.00 price objective (down previously from $46.00) on shares of Teck Resources in a research note on Friday, July 25th. UBS Group upgraded shares of Teck Resources from a "neutral" rating to a "buy" rating in a research note on Wednesday, September 3rd. CIBC cut shares of Teck Resources from a "sector outperform" rating to a "neutral" rating in a research note on Friday, July 25th. Desjardins cut shares of Teck Resources from a "buy" rating to a "hold" rating in a research note on Friday, July 18th. Finally, Morgan Stanley cut shares of 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 research note on Tuesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, Teck Resources has an average rating of "Moderate Buy" and a consensus target price of $56.88.

Hedge Funds Weigh In On Teck Resources

Several hedge funds and other institutional investors have recently made changes to their positions in TECK. Norges Bank acquired a new position in shares of Teck Resources in the 2nd quarter valued at approximately $437,657,000. 1832 Asset Management L.P. increased its position in 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 worth $231,719,000 after purchasing an additional 5,391,907 shares in the last quarter. Principal Financial Group Inc. increased its position in 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 worth $419,970,000 after purchasing an additional 4,180,623 shares in the last quarter. Canoe Financial LP acquired a new position in Teck Resources during the 2nd quarter worth approximately $97,536,000. Finally, Picton Mahoney Asset Management acquired a new position in Teck Resources during the 2nd quarter worth approximately $83,322,000. 78.06% of the stock is currently owned by institutional investors and hedge funds.

Teck Resources Stock Performance

The stock's 50-day moving average is $35.03 and its 200-day moving average is $36.46. The firm has a market capitalization of $19.22 billion, a price-to-earnings ratio of 105.25, a PEG ratio of 0.54 and a beta of 0.78. The company has a current ratio of 3.47, a quick ratio of 2.45 and a debt-to-equity ratio of 0.15.

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

Teck Resources Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.0918 per share. This represents a $0.37 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Monday, September 15th. This is a positive change from Teck Resources's previous quarterly dividend of $0.09. Teck Resources's payout ratio 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.

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