Ternium (NYSE:TX) Stock Price Down 11.6% Following Weak Earnings

Ternium S.A. (NYSE:TX)’s stock price was down 11.6% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $33.74 and last traded at $33.4960. Approximately 124,162 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 218,690 shares. The stock had previously closed at $37.87.

The basic materials company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.68). Ternium had a net margin of 3.72% and a return on equity of 1.88%. The firm had revenue of $3.96 billion during the quarter, compared to the consensus estimate of $4.02 billion. During the same quarter in the previous year, the company posted $0.16 earnings per share. The firm’s revenue was down 11.7% on a year-over-year basis.

Ternium Dividend Announcement

The company also recently declared a dividend, which will be paid on Tuesday, November 11th. Stockholders of record on Monday, November 10th will be paid a $0.90 dividend. This represents a dividend yield of 519.0%. The ex-dividend date is Monday, November 10th. Ternium’s dividend payout ratio is presently 121.21%.

Analysts Set New Price Targets

A number of research analysts have recently commented on TX shares. Wall Street Zen upgraded Ternium from a “hold” rating to a “buy” rating in a research note on Saturday, August 30th. Morgan Stanley cut Ternium from an “overweight” rating to an “equal weight” rating and set a $34.00 price target for the company. in a research note on Monday, July 21st. Scotiabank decreased their price objective on Ternium from $41.00 to $40.00 and set a “sector outperform” rating for the company in a report on Wednesday, September 3rd. Hsbc Global Res upgraded Ternium to a “strong-buy” rating in a report on Friday, October 17th. Finally, JPMorgan Chase & Co. increased their price objective on Ternium from $39.00 to $40.50 and gave the company an “overweight” rating in a report on Friday, October 17th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Ternium presently has a consensus rating of “Hold” and an average target price of $34.69.

Institutional Trading of Ternium

A number of large investors have recently bought and sold shares of the business. GAMMA Investing LLC grew its holdings in 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 acquiring an additional 303 shares during the period. Blue Trust Inc. grew its holdings in Ternium by 17.5% during the 3rd quarter. Blue Trust Inc. now owns 2,247 shares of the basic materials company’s stock worth $78,000 after acquiring an additional 335 shares during the period. Caxton Associates LLP grew its holdings in Ternium by 2.8% during the 2nd quarter. Caxton Associates LLP now owns 17,819 shares of the basic materials company’s stock worth $536,000 after acquiring an additional 484 shares during the period. Boston Partners grew its holdings in Ternium by 4.1% during the 1st quarter. Boston Partners now owns 20,994 shares of the basic materials company’s stock worth $654,000 after acquiring an additional 827 shares during the period. Finally, Cetera Investment Advisers grew its holdings in Ternium by 10.1% during the 1st quarter. Cetera Investment Advisers now owns 9,671 shares of the basic materials company’s stock worth $301,000 after acquiring an additional 890 shares during the period. 11.98% of the stock is currently owned by institutional investors and hedge funds.

Ternium Stock Performance

The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.59 and a current ratio of 2.68. The stock has a fifty day simple moving average of $34.95 and a two-hundred day simple moving average of $31.71. The stock has a market capitalization of $7.19 billion, a price-to-earnings ratio of 12.07 and a beta of 1.52.

Ternium Company Profile

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.