Ternium (NYSE:TX) Sets New 1-Year Low Following Weak Earnings

Shares of Ternium S.A. (NYSE:TX - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $28.00 and last traded at $29.03, with a volume of 93131 shares changing hands. The stock had previously closed at $31.37.

The basic materials company reported ($0.42) EPS for the quarter, missing analysts' consensus estimates of $0.97 by ($1.39). Ternium had a positive return on equity of 1.82% and a negative net margin of 0.31%. The firm had revenue of $3.88 billion for the quarter, compared to analysts' expectations of $4.18 billion.

Ternium Increases Dividend

The company also recently announced a semi-annual dividend, which will be paid on Wednesday, May 14th. Stockholders of record on Friday, May 9th will be given a dividend of $1.80 per share. This is a boost from Ternium's previous semi-annual dividend of $0.09. This represents a dividend yield of 10.3%. The ex-dividend date is Friday, May 9th. Ternium's payout ratio is presently -642.83%.

Analyst Upgrades and Downgrades

TX has been the subject of a number of research analyst reports. The Goldman Sachs Group dropped their price target on shares of Ternium from $45.00 to $39.00 and set a "buy" rating for the company in a research note on Thursday, February 6th. StockNews.com downgraded shares of Ternium from a "buy" rating to a "hold" rating in a report on Thursday, November 14th.

Institutional Investors Weigh In On Ternium

Large investors have recently added to or reduced their stakes in the stock. Donald Smith & CO. Inc. raised its stake in Ternium by 88.6% during the third quarter. Donald Smith & CO. Inc. now owns 2,539,751 shares of the basic materials company's stock worth $93,742,000 after acquiring an additional 1,193,110 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in Ternium during the third quarter worth about $6,743,000. PointState Capital LP bought a new position in shares of Ternium during the 4th quarter valued at about $4,112,000. State Street Corp lifted its holdings in shares of Ternium by 422.1% during the 3rd quarter. State Street Corp now owns 174,572 shares of the basic materials company's stock valued at $6,443,000 after purchasing an additional 141,134 shares in the last quarter. Finally, Woodline Partners LP raised its position in Ternium by 28.0% in the 4th quarter. Woodline Partners LP now owns 365,693 shares of the basic materials company's stock valued at $10,634,000 after buying an additional 79,935 shares during the last quarter. Institutional investors own 11.98% of the company's stock.

Ternium Stock Performance

The firm has a market cap of $5.79 billion, a price-to-earnings ratio of -105.38, a price-to-earnings-growth ratio of 0.38 and a beta of 1.76. The stock has a 50-day moving average of $29.46 and a 200-day moving average of $32.59. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.67 and a current ratio of 2.88.

About Ternium

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.