Is Terex Corporation (TEX) Dependable Investment For Investors?

On Friday, shares of Terex Corporation (NYSE:TEX) marked $15.72 per share versus a previous $16.53 closing price. With having a -4.90% loss, an insight into the fundamental values of Terex Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. TEX showed a fall of -47.21% within its YTD performance, with highs and lows between $11.54 – $33.49 during the period of 52 weeks, compared to the simple moving average of -32.27% in the period of the last 200 days.

CFRA equity researchers changed the status of Terex Corporation (NYSE: TEX) shares from “Hold” to a “Sell” rating in the report published on May 4th, 2020. Other analysts, including Credit Suisse, also published their reports on TEX shares. Credit Suisse repeated the rating from the previous report, marking TEX under “Neutral” rating, in the report published on April 24th, 2020. Additionally, TEX shares got another “Neutral” rating from Goldman, setting a target price of $19 on the company’s shares, according to the report published in April 20th, 2020. On March 25th, 2020, Citigroup Upgrade an Neutral rating and increased its price target from $14 to $13.50. On the other hand, Wells Fargo Downgrade the “Underweight” rating for TEX shares, as published in the report on January 14th, 2020. Deutsche Bank seems to be going bullish on the price of TEX shares, based on the price prediction for TEX, indicating that the shares will jump from $20 to $31, giving the shares “Hold” rating based on their report from December 17th, 2019. Another “Outperform” rating came from Robert W. Baird, providing a prediction for $31 price target according to the report published in November 11th, 2019.

Terex Corporation (TEX) Analysis

The present dividend yield for TEX owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Terex Corporation, the company needs to provide a healthy cash flow, currently at the value of 5.88. In addition, the growth of sales from quarter to quarter is recording -26.70%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Terex Corporation (TEX) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 11.20% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.50 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while TEX is currently recording an average of 1.33M in volumes. The volatility of the stock on monthly basis is set at 7.43%, while the weekly volatility levels are marked at 7.00%with 9.47% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $16.21, indicating growth from the present price of $15.72, which can represent yet another valuable research and analysis points that can help you decide whether to invest in TEX or pass.

What to Look for When Analyzing Terex Corporation Shares?

Terex Corporation (TEX) is based in the USA and it represents one of the well-known company operating with Industrials sector. If you wish to compare TEX shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 8.86 for Terex Corporation, while the value 15.60 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.78 is supported by the yearly EPS growth of -9.10%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 4.50%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 92.10% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in TEX Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in TEX in the recent period. That is how The Vanguard Group, Inc. now has an increase position in TEX by 3.84% in the first quarter, owning 7.22 million shares of TEX stocks, with the value of $109.64 million after the purchase of an additional 266,785 shares during the last quarter. In the meanwhile, Pzena Investment Management LLC also increased their stake in TEX shares changed 2.61% in the first quarter, which means that the company now owns 4.63 million shares of company, all valued at $70.31 million after the acquisition of additional 117,897 shares during the last quarter.

Fuller & Thaler Asset Management, acquired a new position in Terex Corporation during the first quarter, with the value of $56.53 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 5.39% in the first quarter, now owning 112,968 shares valued at $33.53 million after the acquisition of the additional 2.21 million shares during the last quarter. At the present, 92.10% of TEX shares are in the ownership of institutional investors.