why Teck Resources Limited [TECK] is a Good Choice for Investors After New Price Target of $54.98

Teck Resources Limited [NYSE: TECK] price plunged by -3.06 percent to reach at -$1.02. The company report on September 20, 2022 that Teck Reports Elkview Plant Outage.


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Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) announced today that there has been a structural failure of the plant feed conveyor belt at its Elkview steelmaking coal operation in the Elk Valley of British Columbia. Initial estimates are that production at Elkview Operations will be interrupted for 1-2 months as repairs are implemented. Elkview will reschedule planned plant maintenance to take advantage of plant downtime and mine operations will focus on pre-stripping during the outage. Assuming a two-month suspension of plant operations, Teck expects the impact on 2022 steelmaking coal production will be in the range of 1.5 million tonnes.

When also factoring in the impact of the recent labour action at Westshore Terminals, Teck’s third quarter steelmaking coal sales are now expected to be between 5.5 – 5.9 million tonnes versus our previously announced guidance range of 5.8 – 6.2 million tonnes.

A sum of 3649136 shares traded at recent session while its average daily volume was at 5.46M shares. Teck Resources Limited shares reached a high of $32.79 and dropped to a low of $31.841 until finishing in the latest session at $32.30.

The one-year TECK stock forecast points to a potential upside of 41.25. The average equity rating for TECK stock is currently 1.90, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Teck Resources Limited [TECK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TECK shares is $54.98 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TECK stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Teck Resources Limited shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 16, 2022. The new note on the price target was released on July 28, 2022, representing the official price target for Teck Resources Limited stock. Previously, the target price had yet another drop from $47 to $45, while Morgan Stanley kept a Equal-Weight rating on TECK stock.

The Average True Range (ATR) for Teck Resources Limited is set at 1.37, with the Price to Sales ratio for TECK stock in the period of the last 12 months amounting to 1.21. The Price to Book ratio for the last quarter was 0.90, with the Price to Cash per share for the same quarter was set at 3.75. Price to Free Cash Flow for TECK in the course of the last twelve months was 5.44 with Quick ratio for the last quarter at 1.20.

TECK Stock Performance Analysis:

Teck Resources Limited [TECK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.35. With this latest performance, TECK shares dropped by -5.06% in over the last four-week period, additionally sinking by -20.17% over the last 6 months – not to mention a rise of 36.02% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TECK stock in for the last two-week period is set at 45.97, with the RSI for the last a single of trading hit 42.37, and the three-weeks RSI is set at 47.70 for Teck Resources Limited [TECK]. The present Moving Average for the last 50 days of trading for this stock 31.34, while it was recorded at 32.74 for the last single week of trading, and 34.75 for the last 200 days.

Insight into Teck Resources Limited Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Teck Resources Limited [TECK] shares currently have an operating margin of +32.11 and a Gross Margin at +36.09. Teck Resources Limited’s Net Margin is presently recorded at +21.27.

Return on Equity for this stock inclined to 13.33, with Return on Assets sitting at 6.47.

Teck Resources Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.80.

Teck Resources Limited [TECK] Insider Position Details

There are presently around $9,441 million, or 70.60% of TECK stock, in the hands of institutional investors. The top three institutional holders of TECK stocks are: DODGE & COX with ownership of 23,051,940, which is approximately 0.083% of the company’s market cap and around 1.40% of the total institutional ownership; ROYAL BANK OF CANADA, holding 20,142,389 shares of the stock with an approximate value of $650.6 million in TECK stocks shares; and VANGUARD GROUP INC, currently with $494.36 million in TECK stock with ownership of nearly 3.4% of the company’s market capitalization.

Positions in Teck Resources Limited stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 214 institutional holders increased their position in Teck Resources Limited [NYSE:TECK] by around 51,005,712 shares. Additionally, 219 investors decreased positions by around 41,422,177 shares, while 39 investors held positions by with 199,865,214 shares. The mentioned changes placed institutional holdings at 292,293,103 shares, according to the latest SEC report filing. TECK stock had 68 new institutional investments in for a total of 6,317,357 shares, while 73 institutional investors sold positions of 6,130,856 shares during the same period.

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