Ternium S.A. (NYSE:TX) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus "Hold" — Nine analysts give Ternium a consensus "Hold" (1 sell, 4 hold, 3 buy, 1 strong buy) with a 1‑year average price target of $39.79.
• Ternium missed quarterly expectations, reporting $0.62 EPS versus $0.77 expected and $3.77B revenue (down 2.6% year-over-year), while sell-side analysts forecast full‑year EPS of 4.18.
• $0.90 dividend announced — payable May 20 to shareholders of record on May 14; the article reports a dividend payout ratio of 83.33%.

Shares of Ternium S.A. (NYSE:TX - Get Free Report) have received a consensus recommendation of "Hold" from the nine research firms that are covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $39.7857.

TX has been the subject of several research analyst reports. UBS Group increased their price objective on Ternium from $39.00 to $41.00 and gave the stock a "neutral" rating in a research note on Thursday, April 2nd. Wells Fargo & Company reissued an "underweight" rating and issued a $36.00 price objective on shares of Ternium in a research note on Wednesday, April 15th. Zacks Research downgraded Ternium from a "strong-buy" rating to a "hold" rating in a research note on Thursday, January 29th. Weiss Ratings raised Ternium from a "hold (c)" rating to a "buy (b-)" rating in a research note on Friday, February 20th. Finally, Bank of America raised Ternium from a "neutral" rating to a "buy" rating and set a $46.00 price objective for the company in a research note on Monday, April 13th.

Institutional Investors Weigh In On Ternium

Hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its stake in Ternium by 49.2% in the 4th quarter. EverSource Wealth Advisors LLC now owns 704 shares of the basic materials company's stock worth $27,000 after acquiring an additional 232 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new stake in Ternium in the 4th quarter worth about $36,000. Camelot Portfolios LLC purchased a new stake in shares of Ternium during the 4th quarter worth about $38,000. GAMMA Investing LLC raised its stake in shares of Ternium by 40.0% during the 3rd quarter. GAMMA Investing LLC now owns 1,061 shares of the basic materials company's stock worth $37,000 after purchasing an additional 303 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new stake in shares of Ternium during the 3rd quarter worth about $38,000. 11.98% of the stock is owned by hedge funds and other institutional investors.

Ternium Trading Down 0.7%

NYSE:TX opened at $42.70 on Wednesday. The company has a quick ratio of 1.45, a current ratio of 2.49 and a debt-to-equity ratio of 0.12. Ternium has a 1-year low of $27.12 and a 1-year high of $45.57. The firm has a market capitalization of $8.56 billion, a price-to-earnings ratio of 19.77 and a beta of 1.27. The stock has a fifty day simple moving average of $41.08 and a 200 day simple moving average of $39.39.

Ternium (NYSE:TX - Get Free Report) last released its quarterly earnings results on Saturday, February 14th. The basic materials company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.77 by ($0.15). Ternium had a net margin of 2.72% and a return on equity of 3.06%. The company had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.81 billion. During the same quarter last year, the business earned ($0.42) EPS. The company's revenue for the quarter was down 2.6% compared to the same quarter last year. Sell-side analysts forecast that Ternium will post 4.18 earnings per share for the current year.

Ternium Dividend Announcement

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

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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