Teck Resources Sees Unusually High Options Volume (NYSE:TECK)

Key Points

• Teck Resources saw unusually high options activity, with traders purchasing 7,070 call options—221% above the average volume of 2,203 calls.
• Institutional ownership remains substantial at 78.06%, with major investors including Principal Financial, Vanguard, Davis Selected Advisers and Hancock Prospecting increasing their stakes.
• Teck reported stronger-than-expected quarterly results, with EPS of $1.35 and revenue of $2.54 billion, while shares fell 1.3% to $65.10. Analysts’ consensus rating is “Hold,” with an average price target of $62.25; the company also declared a quarterly dividend of $0.125 per share.

Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK saw unusually large options trading on Thursday. Traders bought 7,070 call options on the company. This represents an increase of 221% compared to the average volume of 2,203 call options.

Hedge Funds Weigh In On Teck Resources

A number of institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. raised its holdings in Teck Resources by 17.1% in the 1st quarter. Principal Financial Group Inc. now owns 22,044,284 shares of the basic materials company's stock worth $1,139,051,000 after purchasing an additional 3,211,985 shares during the period. Vanguard Group Inc. raised its stake in shares of Teck Resources by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 20,185,694 shares of the basic materials company's stock worth $966,370,000 after buying an additional 278,481 shares during the period. Davis Selected Advisers lifted its position in shares of Teck Resources by 9.0% during the 4th quarter. Davis Selected Advisers now owns 12,019,609 shares of the basic materials company's stock valued at $575,620,000 after buying an additional 995,947 shares in the last quarter. Hancock Prospecting Pty Ltd grew its stake in Teck Resources by 31.7% in the 4th quarter. Hancock Prospecting Pty Ltd now owns 10,298,293 shares of the basic materials company's stock valued at $493,185,000 after acquiring an additional 2,477,344 shares during the period. Finally, Norges Bank acquired a new stake in Teck Resources in the 4th quarter valued at $404,880,000. 78.06% of the stock is owned by hedge funds and other institutional investors.

Teck Resources Stock Down 1.3%

Shares of TECK stock traded down $0.85 on Thursday, hitting $65.10. The stock had a trading volume of 555,126 shares, compared to its average volume of 3,699,887. Teck Resources has a one year low of $31.10 and a one year high of $71.25. The business has a 50 day moving average price of $61.33 and a 200 day moving average price of $58.98. The company has a market cap of $31.44 billion, a PE ratio of 17.66, a P/E/G ratio of 1.87 and a beta of 0.92. The company has a quick ratio of 2.33, a current ratio of 3.12 and a debt-to-equity ratio of 0.12.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last announced its quarterly earnings results on Thursday, July 23rd. The basic materials company reported $1.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.95 by $0.40. The business had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.38 billion. Teck Resources had a return on equity of 10.42% and a net margin of 17.85%.The business's revenue was up 78.2% compared to the same quarter last year. During the same period last year, the business posted $0.38 EPS. Research analysts anticipate that Teck Resources will post 3.48 earnings per share for the current fiscal year.

Teck Resources Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.50 dividend on an annualized basis and a yield of 0.8%. Teck Resources's payout ratio is currently 9.76%.

Wall Street Analysts Forecast Growth

TECK has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft raised their target price on shares of Teck Resources from $64.00 to $68.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. Scotiabank reaffirmed a "sector perform" rating on shares of Teck Resources in a research note on Monday, June 15th. Wall Street Zen cut Teck Resources from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 26th. Raymond James Financial raised Teck Resources from a "market perform" rating to an "outperform" rating in a research report on Thursday, July 23rd. Finally, Veritas downgraded Teck Resources from a "strong-buy" rating to a "hold" rating in a research report on Thursday, June 4th. Six analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, Teck Resources currently has an average rating of "Hold" and an average price target of $62.25.

Teck Resources Company Profile

Teck Resources Ltd. is a diversified natural resource company headquartered in Canada that explores for, develops and produces a portfolio of metallic and energy commodities. Its core businesses center on copper, steelmaking (metallurgical) coal and zinc, with related smelting and refining activities. Teck supplies raw materials and intermediate products to global steelmakers, metals markets and industrial customers, and operates integrated mining and processing facilities as well as earlier-stage exploration and development projects.

The company's operations and projects are located across multiple geographies, with a significant presence in western Canada and North America and additional exploration and development activities in Latin America.

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