Ternium (NYSE:TX) Sees Large Volume Increase - Should You Buy?

Key Points

• Ternium shares saw unusually high trading volume on Wednesday, with about 419,150 shares traded, up 28% from the prior session. The stock also rose to $46.03 from a previous close of $44.84.
• Analyst sentiment is generally constructive, with a consensus rating of “Moderate Buy” and an average target price of $47.94. Recent calls included several upgrades, while UBS and Wells Fargo also raised their price targets.
• The company reported solid recent results and a healthy balance sheet, posting $1.10 in quarterly EPS on $3.93 billion in revenue. Ternium also showed strong liquidity with a current ratio of 2.63 and low debt-to-equity of 0.14.

Ternium S.A. (NYSE:TX - Get Free Report) shares saw unusually-high trading volume on Wednesday . Approximately 419,150 shares were traded during trading, an increase of 28% from the previous session's volume of 327,759 shares.The stock last traded at $46.03 and had previously closed at $44.84.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on TX shares. UBS Group lifted their price target on shares of Ternium from $39.00 to $41.00 and gave the company a "neutral" rating in a research note on Thursday, April 2nd. Itau BBA Securities raised Ternium from a "market perform" rating to an "outperform" rating and set a $59.00 price target on the stock in a research note on Sunday, May 24th. Weiss Ratings reissued a "buy (b-)" rating on shares of Ternium in a research note on Wednesday, May 20th. Wells Fargo & Company raised Ternium from an "underweight" rating to an "equal weight" rating and upped their target price for the stock from $43.00 to $45.00 in a research report on Thursday, July 9th. Finally, Bradesco Corretora upgraded Ternium to an "outperform" rating and set a $62.00 target price on the stock in a report on Tuesday, May 19th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $47.94.

Ternium Stock Performance

The stock has a market capitalization of $9.27 billion, a PE ratio of 15.88, a price-to-earnings-growth ratio of 0.16 and a beta of 1.29. The stock has a fifty day moving average of $45.84 and a 200-day moving average of $43.28. The company has a quick ratio of 1.53, a current ratio of 2.63 and a debt-to-equity ratio of 0.14.

Ternium (NYSE:TX - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The basic materials company reported $1.10 earnings per share for the quarter. The company had revenue of $3.93 billion for the quarter. Ternium had a return on equity of 3.70% and a net margin of 3.66%. Equities analysts anticipate that Ternium S.A. will post 5.71 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 the company. Oldfield Partners LLP lifted its position in shares of Ternium by 11.3% during the 2nd quarter. Oldfield Partners LLP now owns 26,161 shares of the basic materials company's stock worth $1,117,000 after purchasing an additional 2,666 shares during the last quarter. GAMMA Investing LLC lifted its holdings in Ternium by 18.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,166 shares of the basic materials company's stock worth $92,000 after buying an additional 331 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Ternium by 69.4% during the 1st quarter. Empowered Funds LLC now owns 161,171 shares of the basic materials company's stock worth $6,471,000 after acquiring an additional 66,042 shares in the last quarter. Militia Capital Management LLC acquired a new position in shares of Ternium during the 1st quarter worth about $1,486,000. Finally, Parallel Advisors LLC increased its holdings in shares of Ternium by 101.2% in the 1st quarter. Parallel Advisors LLC now owns 805 shares of the basic materials company's stock valued at $32,000 after acquiring an additional 405 shares during the last quarter. 11.98% of the stock is currently owned by institutional investors and hedge funds.

Ternium Company Profile

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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