On March 30, 2023, Morgan Stanley downgraded their outlook for Nexa Resources (NYSE:NEXA) from Overweight to Underweight.
Analyst Price Forecast Suggests 25.69% Upside
As of March 30, 2023, the average one-year price target for Nexa Resources is $7.98. The forecasts range from a low of $5.05 to a high of $12.60. The average price target represents an increase of 25.69% from its latest reported closing price of $6.35.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Nexa Resources is $2,630MM, a decrease of 13.32%. The projected annual non-GAAP EPS is $1.16.
Nexa Resources Declares $0.19 Dividend
On February 15, 2023 the company declared a regular annual dividend of $0.19 per share. Shareholders of record as of March 10, 2023 received the payment on March 24, 2023. Previously, the company paid $0.05 per share.
At the current share price of $6.35 / share, the stock's dividend yield is 2.97%. Looking back five years and taking a sample every week, the average dividend yield has been 4.42%, the lowest has been 1.07%, and the highest has been 13.73%. The standard deviation of yields is 2.22 (n=236).
The current dividend yield is 0.65 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.89. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is -0.12%.
What are Large Shareholders Doing?
Capital International Investors holds 4,712K shares representing 3.56% ownership of the company. In it's prior filing, the firm reported owning 4,709K shares, representing an increase of 0.08%. The firm increased its portfolio allocation in NEXA by 7.63% over the last quarter.
CAIBX - CAPITAL INCOME BUILDER holds 4,625K shares representing 3.49% ownership of the company. No change in the last quarter.
SILJ - ETFMG Prime Junior Silver Miners ETF holds 1,510K shares representing 1.14% ownership of the company. In it's prior filing, the firm reported owning 663K shares, representing an increase of 56.11%. The firm increased its portfolio allocation in NEXA by 128.23% over the last quarter.
Mirae Asset Global Investments Co. holds 1,055K shares representing 0.80% ownership of the company.
Renaissance Technologies holds 370K shares representing 0.28% ownership of the company. In it's prior filing, the firm reported owning 494K shares, representing a decrease of 33.54%. The firm decreased its portfolio allocation in NEXA by 15.34% over the last quarter.
What is the Fund Sentiment?
There are 58 funds or institutions reporting positions in Nexa Resources. This is a decrease of 7 owner(s) or 10.77% in the last quarter. Average portfolio weight of all funds dedicated to NEXA is 0.03%, an increase of 83.32%. Total shares owned by institutions decreased in the last three months by 5.60% to 13,785K shares. The put/call ratio of NEXA is 0.16, indicating a bullish outlook.
Nexa Resources Background Information
(This description is provided by the company.)
Nexa is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil. Nexa also currently owns and operates three smelters, two located in Brazil and one in Peru, Cajamarquilla, which is the largest smelter in the Americas. Nexa was among the top five producers of mined zinc globally in 2019 and also one of the top five metallic zinc producers worldwide in 2019, according to Wood Mackenzie.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
