Thomson Reuters (NASDAQ:TRI) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Thomson Reuters from “Hold” to “Strong Sell.” Despite that call, the broader analyst consensus remained “Moderate Buy,” with an average price target of $128.96.
• The company reported quarterly EPS of $0.81, below the $0.89 consensus estimate; revenue was $1.80 billion, in line with expectations and up 2.9% year over year.
• Thomson Reuters’ board authorized a $500 million share buyback, allowing repurchases of up to 1.1% of the company’s stock.

Thomson Reuters (NASDAQ:TRI - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other research analysts have also issued reports on TRI. Scotiabank reiterated a "sector outperform" rating and set a $135.00 price target on shares of Thomson Reuters in a research note on Thursday, August 6th. Canaccord Genuity Group raised their price objective on shares of Thomson Reuters from $129.50 to $130.50 and gave the company a "buy" rating in a research report on Wednesday, November 4th. Royal Bank Of Canada lifted their price objective on Thomson Reuters from $124.00 to $130.00 and gave the company an "outperform" rating in a report on Wednesday, October 28th. Barclays dropped their target price on Thomson Reuters from $140.00 to $130.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 8th. Finally, Scotia decreased their price target on Thomson Reuters from $138.00 to $135.00 and set a "sector outperform" rating on the stock in a research note on Thursday, August 6th. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Thomson Reuters currently has a consensus rating of "Moderate Buy" and a consensus target price of $128.96.

Thomson Reuters Stock Performance

NASDAQ:TRI traded up $0.05 during midday trading on Thursday, reaching $109.30. The stock had a trading volume of 1,380,309 shares, compared to its average volume of 1,895,142. The firm has a fifty day simple moving average of $106.04 and a two-hundred day simple moving average of $96.73. Thomson Reuters has a 12-month low of $76.28 and a 12-month high of $142.04. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.29. The stock has a market cap of $47.38 billion, a P/E ratio of 30.52, a P/E/G ratio of 2.23 and a beta of 0.69.

Thomson Reuters (NASDAQ:TRI - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.81 EPS for the quarter, missing analysts' consensus estimates of $0.89 by ($0.08). Thomson Reuters had a return on equity of 15.72% and a net margin of 20.02%. The firm had revenue of $1.80 billion for the quarter, compared to analysts' expectations of $1.80 billion. During the same quarter in the previous year, the company posted $0.85 EPS. The firm's quarterly revenue was up 2.9% compared to the same quarter last year. On average, equities analysts expect that Thomson Reuters will post 4.20 EPS for the current year.

Thomson Reuters announced that its board has initiated a share buyback plan on Wednesday, November 11th that authorizes the company to repurchase $500 million in shares. This buyback authorization authorizes the company to reacquire up to 1.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its stock is undervalued.

Institutional Trading of Thomson Reuters

Several large investors have recently bought and sold shares of TRI. Danske Bank A S acquired a new stake in shares of Thomson Reuters in the third quarter valued at approximately $28,000. Western Wealth Management LLC acquired a new position in shares of Thomson Reuters during the 1st quarter worth approximately $48,000. GK Wealth Management LLC acquired a new position in shares of Thomson Reuters during the 3rd quarter worth approximately $53,000. Continuum Advisory LLC acquired a new position in shares of Thomson Reuters during the 2nd quarter worth approximately $45,000. Finally, Westside Investment Management Inc. lifted its stake in Thomson Reuters by 80.7% in the 3rd quarter. Westside Investment Management Inc. now owns 600 shares of the company's stock valued at $59,000 after buying an additional 268 shares in the last quarter. Institutional investors and hedge funds own 17.31% of the company's stock.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information, software and services for legal, tax, accounting, compliance, risk and financial professionals. Its products help customers research complex issues, manage workflows and make informed decisions. Key offerings include Westlaw and Practical Law for legal research and practice management, Checkpoint for tax and accounting research, and ONESOURCE for tax and trade compliance. The company also provides news and information through Reuters, its global news organization.

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