Ternium (NYSE:TX) Hits New 1-Year High – Should You Buy?

Ternium S.A. (NYSE:TX)’s share price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $42.32 and last traded at $42.21, with a volume of 185706 shares changing hands. The stock had previously closed at $41.70.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. HSBC set a $41.00 price objective on shares of Ternium and gave the company a “buy” rating in a research note on Friday, October 17th. Zacks Research upgraded Ternium from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, December 31st. Wall Street Zen downgraded Ternium from a “buy” rating to a “hold” rating in a report on Saturday, November 1st. UBS Group boosted their price objective on Ternium from $32.00 to $39.00 and gave the stock a “neutral” rating in a research report on Monday, December 15th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Ternium in a research report on Wednesday, October 8th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Ternium has an average rating of “Moderate Buy” and an average price target of $35.56.

Ternium Price Performance

The stock has a market cap of $8.48 billion, a P/E ratio of 14.23 and a beta of 1.36. The business has a 50-day simple moving average of $38.16 and a 200 day simple moving average of $35.37. The company has a current ratio of 2.46, a quick ratio of 1.42 and a debt-to-equity ratio of 0.10.

Ternium (NYSE:TX) last posted its quarterly earnings data on Tuesday, October 28th. The basic materials company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.68). The company had revenue of $3.95 billion during the quarter, compared to analyst estimates of $4.02 billion. Ternium had a return on equity of 1.89% and a net margin of 3.72%.Ternium’s revenue was down 11.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.16 earnings per share. On average, analysts forecast that Ternium S.A. will post 4.37 earnings per share for the current year.

Ternium Announces Dividend

The company also recently disclosed a dividend, which was paid on Friday, November 14th. Stockholders of record on Monday, November 10th were given a dividend of $0.90 per share. The ex-dividend date was Monday, November 10th. This represents a dividend yield of 503.0%. Ternium’s dividend payout ratio is 60.61%.

Hedge Funds Weigh In On Ternium

Several hedge funds and other institutional investors have recently bought and sold shares of TX. Lazard Asset Management LLC boosted its position in Ternium by 8.5% during the third quarter. Lazard Asset Management LLC now owns 5,813,570 shares of the basic materials company’s stock valued at $201,905,000 after acquiring an additional 454,798 shares during the last quarter. Donald Smith & CO. Inc. lifted its stake in shares of Ternium by 10.1% in the 2nd quarter. Donald Smith & CO. Inc. now owns 3,412,385 shares of the basic materials company’s stock valued at $102,713,000 after purchasing an additional 312,595 shares during the period. Ninety One UK Ltd boosted its position in shares of Ternium by 5.2% during the 2nd quarter. Ninety One UK Ltd now owns 2,407,110 shares of the basic materials company’s stock valued at $72,454,000 after purchasing an additional 118,595 shares in the last quarter. Schroder Investment Management Group boosted its position in shares of 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. Finally, Ninety One North America Inc. grew its stake in Ternium by 23.4% during the second quarter. Ninety One North America Inc. now owns 1,023,049 shares of the basic materials company’s stock worth $30,794,000 after purchasing an additional 194,174 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.