Traders Purchase Large Volume of Teck Resources Call Options (NYSE:TECK)

Key Points

• Teck Resources saw a significant increase in options trading, with a 43% rise in call options volume, totaling 6,792 contracts compared to an average of 4,742.
• Institutional investors hold 78.06% of Teck Resources' stock, with various firms recently increasing their stakes during the second quarter.
• The company announced a quarterly dividend of $0.0918 per share, marking a slight increase from its previous distribution, resulting in an annual yield of 1.1%.

Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK was the target of unusually large options trading activity on Thursday. Traders acquired 6,792 call options on the company. Thisisanincreaseof43% compared to the typical daily volume of 4,742 call options.

Teck Resources Trading Up 1.3%

Shares of TECK traded up $0.44 during mid-day trading on Friday, hitting $34.21. The company had a trading volume of 2,497,911 shares, compared to its average volume of 3,087,228. The business's 50-day simple moving average is $35.70 and its 200-day simple moving average is $36.87. 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 has a 1-year low of $28.32 and a 1-year high of $54.13. The stock has a market cap of $16.52 billion, a PE ratio of 90.03, a P/E/G ratio of 0.53 and a beta of 0.81.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last released its earnings results on Thursday, July 24th. The basic materials company reported $0.27 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.49 billion for the quarter, compared to analysts' expectations of $2.25 billion. During the same period last year, the company earned $0.79 earnings per share. The company's quarterly revenue was up 12.3% on a year-over-year basis. Sell-side analysts forecast that Teck Resources will post 1.53 earnings per share for the current year.

Teck Resources Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors of record on Monday, September 15th will be given a $0.0918 dividend. This is a boost from Teck Resources's previous quarterly dividend of $0.09. This represents a $0.37 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Monday, September 15th. Teck Resources's dividend payout ratio is 94.74%.

Wall Street Analysts Forecast Growth

TECK has been the topic of a number of research reports. Morgan Stanley cut shares of Teck Resources from an "overweight" rating to an "equal weight" rating and increased their price objective for the company from $42.00 to $44.00 in a research note on Tuesday, July 15th. Stifel Nicolaus initiated coverage on shares of Teck Resources in a report on Wednesday, July 9th. They issued a "hold" rating on the stock. CIBC lowered shares of Teck Resources from a "sector outperform" rating to a "neutral" rating in a report on Friday, July 25th. Stifel Canada upgraded shares of Teck Resources to a "hold" rating in a report on Tuesday, July 8th. Finally, Royal Bank Of Canada reduced their target price on shares of Teck Resources from $82.00 to $67.00 and set an "outperform" rating on the stock in a report on Friday, July 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $60.11.

Institutional Investors Weigh In On Teck Resources

Hedge funds have recently modified their holdings of the stock. Smartleaf Asset Management LLC boosted its position in shares of Teck Resources by 69.2% in the first quarter. Smartleaf Asset Management LLC now owns 856 shares of the basic materials company's stock worth $32,000 after acquiring an additional 350 shares during the last quarter. Costello Asset Management INC purchased a new position in Teck Resources in the first quarter valued at approximately $33,000. Banque Cantonale Vaudoise purchased a new stake in Teck Resources during the first quarter worth approximately $36,000. Golden State Wealth Management LLC grew its stake in Teck Resources by 7,560.0% during the first quarter. Golden State Wealth Management LLC now owns 1,149 shares of the basic materials company's stock worth $42,000 after buying an additional 1,134 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in Teck Resources during the second quarter worth approximately $49,000. 78.06% of the stock is owned by institutional investors and hedge funds.

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.