Teck Resources (NYSE:TECK) Shares Gap Up After Dividend Announcement

Teck Resources Limited (NYSE:TECK) (TSE:TECK) gapped up before the market opened on Friday after the company announced a dividend. The stock had previously closed at $49.51, but opened at $51.46. Teck Resources shares last traded at $50.44, with a volume of 1,696,039 shares traded.

The newly announced dividend which will be paid on Friday, September 27th. Shareholders of record on Friday, September 13th will be issued a dividend of $0.625 per share. This is an increase from Teck Resources’s previous quarterly dividend of $0.09. This represents a $2.50 annualized dividend and a yield of 4.91%. Teck Resources’s payout ratio is presently 16.37%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their price objective on Teck Resources from $44.00 to $50.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 17th. Benchmark lifted their price objective on Teck Resources from $50.00 to $52.00 and gave the stock a “buy” rating in a research report on Monday, April 8th. Finally, Morgan Stanley lifted their price objective on Teck Resources from $55.00 to $60.00 and gave the stock an “overweight” rating in a research report on Friday, June 21st. Two investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $58.80.

Teck Resources Price Performance

The firm has a market capitalization of $26.00 billion, a P/E ratio of 21.91, a price-to-earnings-growth ratio of 11.71 and a beta of 1.05. The business has a 50-day moving average of $49.91 and a 200 day moving average of $44.92. The company has a current ratio of 1.49, a quick ratio of 0.86 and a debt-to-equity ratio of 0.20.

Teck Resources (NYSE:TECK) (TSE:TECK) last issued its earnings results on Thursday, April 25th. The basic materials company reported $0.56 EPS for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.31). Teck Resources had a net margin of 10.59% and a return on equity of 7.52%. The firm had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $2.99 billion. On average, sell-side analysts predict that Teck Resources Limited will post 2.05 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Teck Resources

A number of hedge funds have recently added to or reduced their stakes in TECK. Deutsche Bank AG boosted its stake in Teck Resources by 7.3% during the 3rd quarter. Deutsche Bank AG now owns 1,355,492 shares of the basic materials company’s stock valued at $58,408,000 after purchasing an additional 92,202 shares during the last quarter. American Century Companies Inc. boosted its stake in Teck Resources by 8.2% during the 3rd quarter. American Century Companies Inc. now owns 205,235 shares of the basic materials company’s stock valued at $8,833,000 after purchasing an additional 15,526 shares during the last quarter. Vanguard Group Inc. boosted its stake in Teck Resources by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 15,973,504 shares of the basic materials company’s stock valued at $688,298,000 after purchasing an additional 224,658 shares during the last quarter. Fulton Bank N.A. acquired a new position in Teck Resources during the 4th quarter valued at about $207,000. Finally, Leibman Financial Services Inc. acquired a new position in Teck Resources during the 4th quarter valued at about $4,027,000. Institutional investors and hedge funds own 78.06% of the company’s stock.

About Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen.