Tronox (NYSE:TROX) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Tronox from “hold” to “strong sell,” adding to broadly negative analyst sentiment. The stock has an average “Reduce” rating and an average price target of $5.83.
• Tronox shares fell 2.1% to $3.46, well below their 50-day and 200-day moving averages. The stock has traded between $2.86 and $10.59 over the past year.
• The company reported a quarterly loss of $0.51 per share, missing estimates by $0.13, despite revenue of $868 million exceeding forecasts. Analysts expect a full-year loss of $1.41 per share.

Tronox (NYSE:TROX - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday, Zacks reports.

Several other research firms have also issued reports on TROX. Weiss Ratings reissued a "sell (d-)" rating on shares of Tronox in a research report on Friday, August 7th. Mizuho decreased their price objective on shares of Tronox from $5.50 to $4.50 and set an "underperform" rating for the company in a report on Wednesday, September 30th. UBS Group decreased their price objective on shares of Tronox from $7.00 to $4.50 and set a "neutral" rating for the company in a report on Monday, October 5th. The Goldman Sachs Group dropped their target price on shares of Tronox from $6.50 to $4.00 and set a "sell" rating on the stock in a report on Friday, October 9th. Finally, JPMorgan Chase & Co. cut shares of Tronox from a "neutral" rating to an "underweight" rating and dropped their target price for the stock from $7.00 to $5.00 in a report on Thursday, August 13th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $5.83.

Tronox Stock Down 2.1%

Shares of TROX stock traded down $0.07 during trading hours on Thursday, hitting $3.46. 1,518,777 shares of the company were exchanged, compared to its average volume of 2,237,751. The company has a debt-to-equity ratio of 2.62, a quick ratio of 0.81 and a current ratio of 2.55. Tronox has a one year low of $2.86 and a one year high of $10.59. The business's 50-day simple moving average is $4.66 and its two-hundred day simple moving average is $6.67. The stock has a market capitalization of $553.36 million, a price-to-earnings ratio of -1.00 and a beta of 0.92.

Tronox (NYSE:TROX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.51) EPS for the quarter, missing analysts' consensus estimates of ($0.38) by ($0.13). The firm had revenue of $868.00 million during the quarter, compared to analyst estimates of $832.59 million. Tronox had a negative return on equity of 24.34% and a negative net margin of 17.96%. The firm's revenue for the quarter was up 18.7% on a year-over-year basis. During the same quarter last year, the business posted ($0.28) earnings per share. Sell-side analysts predict that Tronox will post -1.41 EPS for the current fiscal year.

Institutional Investors Weigh In On Tronox

A number of hedge funds have recently added to or reduced their stakes in the stock. CoreCap Advisors LLC bought a new position in shares of Tronox during the third quarter worth about $30,000. Vontobel Holding Ltd. bought a new stake in Tronox in the 3rd quarter valued at about $43,000. Abel Hall LLC bought a new stake in Tronox in the 1st quarter valued at about $121,000. R Squared Ltd bought a new stake in Tronox in the 1st quarter valued at about $155,000. Finally, Public Employees Retirement System of Ohio acquired a new position in Tronox during the 2nd quarter valued at about $114,000. 73.36% of the stock is currently owned by institutional investors.

Tronox Company Profile

Tronox Holdings plc NYSE: TROX is a global producer of titanium dioxide pigment, a white pigment used to provide brightness, opacity and durability in products such as paints and coatings, plastics, paper and specialty materials. The company also produces titanium feedstocks, including titanium slag and synthetic rutile, as well as zircon and other mineral-sands products.

Tronox operates an integrated business that spans the mining and processing of mineral sands, the production of titanium feedstocks and the manufacture of titanium dioxide pigment.

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