Ternium (NYSE:TX) Sets New 52-Week High on Earnings Beat

Key Points

• Ternium hit a new 52-week high after beating expectations, trading up to $47.88 and last at $48.10 after reporting quarterly EPS of $1.10 on revenue of $3.93 billion.
• The company declared a $0.90 per share dividend payable May 20 with record/ex-dividend date May 14, and the report cited a notably high stated yield of 413.0% and a payout ratio of 83.33%.
• Analysts hold a consensus rating of "Moderate Buy" with a $40.94 average target — below the current share price — while broker opinions range from Goldman Sachs' "buy" ($49) to Wells Fargo's "underweight" ($36).

Ternium S.A. (NYSE:TX - Get Free Report)'s share price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $47.88 and last traded at $48.1010, with a volume of 47729 shares trading hands. The stock had previously closed at $44.11.

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 net margin of 2.72% and a return on equity of 3.06%.

Ternium Announces Dividend

The business also recently disclosed a dividend, which will be paid on Wednesday, May 20th. Stockholders of record on Thursday, May 14th will be issued a dividend of $0.90 per share. The ex-dividend date is Thursday, May 14th. This represents a dividend yield of 413.0%. Ternium's dividend payout ratio is currently 83.33%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on TX. Zacks Research lowered shares of Ternium from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 29th. UBS Group upped their price objective on shares of Ternium from $39.00 to $41.00 and gave the company a "neutral" rating in a report on Thursday, April 2nd. The Goldman Sachs Group reiterated a "buy" rating and set a $49.00 price objective on shares of Ternium in a report on Friday, April 24th. Wells Fargo & Company reiterated an "underweight" rating and set a $36.00 price objective on shares of Ternium in a report on Wednesday, April 15th. Finally, Scotiabank restated a "sector perform" rating and issued a $40.00 target price on shares of Ternium in a report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $40.94.

Institutional Trading of Ternium

Institutional investors and hedge funds have recently bought and sold shares of the company. Lazard Asset Management LLC grew its holdings in Ternium by 8.5% in the 3rd quarter. Lazard Asset Management LLC now owns 5,813,570 shares of the basic materials company's stock worth $201,905,000 after acquiring an additional 454,798 shares during the last quarter. Cape Ann Asset Management Ltd grew its holdings in Ternium by 20.5% in the 4th quarter. Cape Ann Asset Management Ltd now owns 1,068,649 shares of the basic materials company's stock worth $40,812,000 after acquiring an additional 182,000 shares during the last quarter. Millennium Management LLC grew its holdings in Ternium by 569.4% in the 1st quarter. Millennium Management LLC now owns 126,827 shares of the basic materials company's stock worth $3,952,000 after acquiring an additional 107,880 shares during the last quarter. Schroder Investment Management Group grew its holdings in Ternium by 4.7% in the 3rd quarter. Schroder Investment Management Group now owns 2,279,273 shares of the basic materials company's stock worth $79,159,000 after acquiring an additional 101,748 shares during the last quarter. Finally, Donald Smith & CO. Inc. boosted its stake 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 valued at $145,452,000 after purchasing an additional 66,062 shares in the last quarter. 11.98% of the stock is currently owned by hedge funds and other institutional investors.

Ternium Price Performance

The company has a current ratio of 2.49, a quick ratio of 1.45 and a debt-to-equity ratio of 0.12. The business's 50 day moving average price is $40.99 and its two-hundred day moving average price is $39.79. The stock has a market cap of $9.60 billion, a P/E ratio of 22.14 and a beta of 1.26.

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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