Thomson Reuters (NASDAQ:TRI) to Repurchase $500 million in Shares

Key Points

• Thomson Reuters authorized a $500 million share repurchase program, allowing it to buy back up to 1.1% of its outstanding shares through open-market purchases.
• Quarterly EPS was $0.81, below analysts’ $0.89 consensus, while revenue of $1.80 billion matched expectations and rose 2.9% year over year.
• The company declared a quarterly dividend of $0.655 per share, equivalent to a 2.4% annualized yield at the reported share price.

Thomson Reuters (NASDAQ:TRI - Get Free Report) announced that its board has authorized a stock repurchase program on Wednesday, November 11th, RTT News reports. The company plans to buy back $500 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 1.1% of its stock through open market purchases. Share buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

Thomson Reuters Stock Performance

NASDAQ TRI traded up $0.42 on Wednesday, hitting $108.83. 1,226,616 shares of the company's stock traded hands, compared to its average volume of 1,968,365. The firm's 50-day moving average price is $106.02 and its two-hundred day moving average price is $96.87. The firm has a market capitalization of $47.17 billion, a PE ratio of 26.33, a P/E/G ratio of 2.21 and a beta of 0.69. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.29. Thomson Reuters has a 1-year low of $76.28 and a 1-year high of $142.04.

Thomson Reuters (NASDAQ:TRI - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by ($0.08). The business had revenue of $1.80 billion for the quarter, compared to analysts' expectations of $1.80 billion. Thomson Reuters had a return on equity of 15.72% and a net margin of 20.02%. The company's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period last year, the business earned $0.85 EPS. As a group, analysts expect that Thomson Reuters will post 4.20 EPS for the current year.

Thomson Reuters Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Wednesday, November 18th will be issued a $0.6550 dividend. This represents a $2.62 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Wednesday, November 18th. Thomson Reuters's payout ratio is 73.18%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Jefferies Financial Group assumed coverage on shares of Thomson Reuters in a report on Tuesday, October 20th. They issued a "buy" rating and a $130.00 price target for the company. TD Securities reissued a "buy" rating on shares of Thomson Reuters in a report on Thursday, August 6th. JPMorgan Chase & Co. boosted their price objective on shares of Thomson Reuters from $110.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, November 4th. Scotiabank reissued a "sector outperform" rating and issued a $135.00 target price on shares of Thomson Reuters in a research report on Thursday, August 6th. Finally, RBC Dominion Securities raised their target price on Thomson Reuters from $124.00 to $130.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 28th. Eleven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $128.96.

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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