Ternium (NYSE:TX) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Shares of Ternium passed above its 200-day moving average (200‑day MA $38.90), trading as high as $41.55 and last at $41.39, with the 50‑day MA near $41.22.
• Analysts are mixed: MarketBeat shows a consensus rating of "Hold" with a $38.25 target, while individual ratings and price targets range from an underweight/$33 to neutral/$41 and include recent upgrades and downgrades.
• The company missed quarterly estimates (EPS $0.62 vs. $0.77; revenue $3.77B vs. $3.81B) and announced a $0.90 dividend payable May 20 (record May 14) with a reported payout ratio of 83.33%.

Shares of Ternium S.A. (NYSE:TX - Get Free Report) passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $38.90 and traded as high as $41.55. Ternium shares last traded at $41.3860, with a volume of 139,051 shares trading hands.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Scotiabank reiterated a "sector perform" rating and set a $40.00 price objective on shares of Ternium in a research note on Thursday, March 26th. Zacks Research downgraded shares of Ternium from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 29th. Wells Fargo & Company lowered their price target on shares of Ternium from $34.00 to $33.00 and set an "underweight" rating for the company in a report on Thursday, February 19th. Weiss Ratings raised shares of Ternium from a "hold (c)" rating to a "buy (b-)" rating in a research note on Friday, February 20th. Finally, 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 research report on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $38.25.

Ternium Stock Performance

The company has a 50-day moving average of $41.22 and a 200-day moving average of $38.90. The firm has a market capitalization of $8.30 billion, a price-to-earnings ratio of 19.16 and a beta of 1.27. The company has a current ratio of 2.49, a quick ratio of 1.45 and a debt-to-equity ratio of 0.12.

Ternium (NYSE:TX - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The basic materials company reported $0.62 EPS for the quarter, missing the consensus estimate of $0.77 by ($0.15). The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.81 billion. Ternium had a net margin of 2.72% and a return on equity of 3.06%. The company's quarterly revenue was down 2.6% on a year-over-year basis. During the same period last year, the firm posted ($0.42) earnings per share. On average, equities research analysts forecast that Ternium S.A. will post 4.37 earnings per share for the current fiscal year.

Ternium Dividend Announcement

The firm also recently announced a dividend, which will be paid on Wednesday, May 20th. Investors of record on Thursday, May 14th will be given a $0.90 dividend. This represents a yield of 413.0%. The ex-dividend date is Thursday, May 14th. Ternium's dividend payout ratio (DPR) is currently 83.33%.

Hedge Funds Weigh In On Ternium

Large investors have recently bought and sold shares of the stock. Allianz Asset Management GmbH raised its holdings in Ternium by 64.7% during the third quarter. Allianz Asset Management GmbH now owns 58,115 shares of the basic materials company's stock worth $2,018,000 after purchasing an additional 22,823 shares in the last quarter. Lazard Asset Management LLC lifted its position in Ternium by 4.6% in the second quarter. Lazard Asset Management LLC now owns 5,358,772 shares of the basic materials company's stock worth $161,298,000 after purchasing an additional 237,741 shares during the period. Schroder Investment Management Group boosted its stake in Ternium by 4.7% during the 3rd quarter. Schroder Investment Management Group now owns 2,279,273 shares of the basic materials company's stock valued at $79,159,000 after purchasing an additional 101,748 shares in the last quarter. Advisors Preferred LLC acquired a new position in shares of Ternium during the 3rd quarter valued at $1,159,000. Finally, Prudential PLC increased its position in shares of Ternium by 5.5% during the 3rd quarter. Prudential PLC now owns 717,593 shares of the basic materials company's stock valued at $24,922,000 after purchasing an additional 37,408 shares during the period. Institutional investors and hedge funds own 11.98% of the company's stock.

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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