Trek Financial LLC has significantly reduced its investment in Teck Resources Ltd by 36.5% during the second quarter of 2023. The financial firm disclosed to the Securities and Exchange Commission that it now holds 116,527 shares after selling 66,886 shares in that period. The current value of Trek’s holdings in the basic materials company amounts to approximately $4.7 million.
Several institutional investors have also adjusted their positions in Teck Resources. Union Bancaire Privee UBP SA increased its stake by 4.3%, acquiring an additional 264 shares, bringing its total to 6,402 shares, valued at $259,000. Similarly, Stephens Inc. AR raised its holdings by 4.8%, now owning 7,189 shares worth $290,000 after purchasing an additional 329 shares.
Other notable changes included Smartleaf Asset Management LLC, which grew its stake by 69.2%, now holding 856 shares valued at $32,000. Assetmark Inc. increased its position by 2.1%, resulting in 20,360 shares worth $822,000. Lastly, VestGen Advisors LLC raised its stake by 7.9%, owning 6,353 shares, valued at $257,000. Currently, about 78.06% of Teck Resources’ stock is held by hedge funds and institutional investors.
Analysts Adjust Ratings and Price Targets
Teck Resources has received mixed ratings from analysts in recent weeks. Raymond James Financial reaffirmed an “outperform” rating on October 10, while Scotiabank maintained a “sector perform” rating on November 25. Conversely, Benchmark restated a “buy” rating on October 23, and Veritas downgraded the stock from “hold” to “strong sell” on October 14. According to MarketBeat.com, the overall consensus rating for Teck Resources is “Hold,” with an average target price of $54.57.
Teck Resources’ Market Performance and Earnings
As of the latest trading session, shares of Teck Resources (NYSE: TECK) opened at $43.22. The stock has experienced a 52-week low of $28.32 and a 52-week high of $48.47. The company has a market capitalization of approximately $20.77 billion and a debt-to-equity ratio of 0.15. Its price-to-earnings (PE) ratio stands at 24.28, and the price-to-earnings-growth (PEG) ratio is 0.74.
Teck Resources released its quarterly earnings data on October 22, reporting earnings per share (EPS) of $0.55, exceeding the consensus estimate of $0.39 by $0.16. Revenue for the quarter was $2.43 billion, though this fell short of analysts’ expectations of $2.93 billion. The company’s net margin was 11.93%, and its return on equity reached 4.14%. Year-over-year, revenue increased by 18.4% compared to the same quarter in the previous year, when it reported an EPS of $0.60.
In a positive development for shareholders, Teck Resources announced an increase in its quarterly dividend. The new dividend of $0.125 per share will be paid on December 31, 2023, to shareholders of record by December 15, 2023. This marks an increase from the previous quarterly dividend of $0.09, representing an annualized dividend of $0.50 and a yield of 1.2%. The company has a dividend payout ratio of 19.66%.
Teck Resources engages in the exploration, acquisition, development, and production of natural resources across Asia, Europe, and North America. Its operations are divided into several segments, including Steelmaking Coal, Copper, Zinc, and Energy, with principal products comprising copper, zinc, steelmaking coal, and blended bitumen.
