Ternium (NYSE:TX) Sets New 1-Year Low – Should You Sell?

Ternium S.A. (NYSE:TX)’s share price reached a new 52-week low during mid-day trading on Friday . The company traded as low as $30.58 and last traded at $30.63, with a volume of 271576 shares changing hands. The stock had previously closed at $31.73.

Wall Street Analysts Forecast Growth

Separately, StockNews.com downgraded Ternium from a “buy” rating to a “hold” rating in a research note on Thursday, November 14th.

Ternium Price Performance

The company has a fifty day simple moving average of $34.27 and a 200-day simple moving average of $35.51. The company has a market cap of $6.03 billion, a P/E ratio of 79.33, a PEG ratio of 0.49 and a beta of 1.74. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.92 and a quick ratio of 1.67.

Ternium (NYSE:TX) last posted its quarterly earnings data on Tuesday, November 5th. The basic materials company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.04. The firm had revenue of $4.48 billion for the quarter, compared to the consensus estimate of $4.45 billion. Ternium had a return on equity of 4.70% and a net margin of 0.42%. The business’s revenue for the quarter was down 13.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.38 EPS. On average, sell-side analysts predict that Ternium S.A. will post 3.7 earnings per share for the current year.

Ternium Cuts Dividend

The firm also recently disclosed a Semi-Annual dividend, which was paid on Tuesday, November 26th. Investors of record on Monday, November 18th were paid a $0.09 dividend. This represents a yield of 8.5%. The ex-dividend date was Monday, November 18th. Ternium’s dividend payout ratio is currently 450.01%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC purchased a new position in Ternium in the third quarter valued at about $1,353,000. Renaissance Technologies LLC lifted its holdings in shares of Ternium by 43.0% during the 2nd quarter. Renaissance Technologies LLC now owns 258,600 shares of the basic materials company’s stock valued at $9,710,000 after buying an additional 77,800 shares during the last quarter. Sei Investments Co. grew its stake in shares of Ternium by 22.0% in the 2nd quarter. Sei Investments Co. now owns 203,632 shares of the basic materials company’s stock valued at $7,646,000 after buying an additional 36,722 shares in the last quarter. Deprince Race & Zollo Inc. grew its stake in shares of Ternium by 12.3% in the 2nd quarter. Deprince Race & Zollo Inc. now owns 160,270 shares of the basic materials company’s stock valued at $6,018,000 after buying an additional 17,552 shares in the last quarter. Finally, Donald Smith & CO. Inc. increased its holdings in Ternium by 88.6% in 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 buying an additional 1,193,110 shares during the last quarter. 11.98% of the stock is owned by hedge funds and other institutional investors.

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.