Ternium (NYSE:TX) Hits New 52-Week High - Still a Buy?

Key Points

• Ternium shares reached a new 52-week high of $58.24 and last traded at $57.06, up from the prior close of $54.21.
• Analyst sentiment remains positive overall, with seven Buy ratings and four Holds producing a “Moderate Buy” consensus, though the average price target of $49.50 is below the current share price.
• Ternium reported quarterly earnings of $1.80 per share on $4.34 billion in revenue, while institutional investors increased holdings; such investors own 11.98% of the company.

Ternium S.A. (NYSE:TX - Get Free Report)'s share price reached a new 52-week high during trading on Friday . The company traded as high as $58.24 and last traded at $57.06, with a volume of 161874 shares traded. The stock had previously closed at $54.21.

Analysts Set New Price Targets

Several analysts have issued reports on TX shares. HSBC restated a "buy" rating on shares of Ternium in a research note on Friday. Zacks Research lowered Ternium from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 30th. The Goldman Sachs Group restated a "buy" rating and issued a $57.00 price target on shares of Ternium in a research note on Friday, May 22nd. Wall Street Zen raised Ternium from a "buy" rating to a "strong-buy" rating in a report on Sunday, July 12th. Finally, Wells Fargo & Company raised shares of Ternium from an "underweight" rating to an "equal weight" rating and lifted their price objective for the stock from $43.00 to $45.00 in a research report on Thursday, July 9th. Seven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $49.50.

Ternium Price Performance

The company's 50-day simple moving average is $47.75 and its 200-day simple moving average is $44.82. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.58 and a quick ratio of 1.43. The stock has a market capitalization of $11.32 billion, a price-to-earnings ratio of 15.86, a P/E/G ratio of 0.17 and a beta of 1.25.

Ternium (NYSE:TX - Get Free Report) last announced its earnings results on Tuesday, June 30th. The basic materials company reported $1.80 earnings per share for the quarter. The company had revenue of $4.34 billion for the quarter. Ternium had a return on equity of 4.26% and a net margin of 4.37%. Research analysts forecast that Ternium S.A. will post 6.07 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ternium

A number of hedge funds and other institutional investors have recently modified their holdings of TX. Lazard Asset Management LLC increased its position in Ternium by 8.0% during the first quarter. Lazard Asset Management LLC now owns 6,336,127 shares of the basic materials company's stock worth $254,395,000 after acquiring an additional 469,846 shares during the period. Donald Smith & CO. Inc. grew its position in shares of Ternium by 1.8% during the 4th quarter. Donald Smith & CO. Inc. now owns 3,808,645 shares of the basic materials company's stock worth $145,452,000 after purchasing an additional 66,062 shares in the last quarter. Cape Ann Asset Management Ltd increased its holdings in shares of Ternium by 20.5% during the fourth quarter. Cape Ann Asset Management Ltd now owns 1,068,649 shares of the basic materials company's stock worth $40,812,000 after purchasing an additional 182,000 shares during the period. Amundi increased its holdings in shares of Ternium by 19.9% during the first quarter. Amundi now owns 703,304 shares of the basic materials company's stock worth $28,238,000 after purchasing an additional 116,813 shares during the period. Finally, Empirical Finance LLC increased its holdings in shares of Ternium by 69.4% during the first quarter. Empirical Finance LLC now owns 161,171 shares of the basic materials company's stock worth $6,471,000 after purchasing an additional 66,042 shares during the period. Institutional investors and hedge funds own 11.98% of the company's stock.

About Ternium

Ternium SA NYSE: TX is a leading vertically integrated steel producer with operations across the Americas. The company manufactures a broad range of flat and long steel products, including hot‐rolled and cold‐rolled coils, galvanized and tin-coated sheets, plates, rebars, wire rods, bars and structural sections. These products serve diverse end markets such as automotive, construction, energy, industrial machinery, home appliances and packaging.

Established in 2005 through the consolidation of steel assets in Argentina and Mexico, Ternium has grown to operate major production facilities in Argentina, Brazil, Mexico, Colombia, Central America and the United States.

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