Arrowstreet Capital Limited Partnership Has $10.12 Million Stock Holdings in Scorpio Tankers Inc. $STNG

Key Points

• Arrowstreet Capital cut its Scorpio Tankers stake by 76.2% in the first quarter, selling 434,488 shares and retaining 135,553 shares worth approximately $10.12 million. Institutional investors collectively own 54.64% of STNG.
• Scorpio Tankers reported strong quarterly results, with EPS of $4.68 and revenue of $408.73 million exceeding estimates; revenue increased 77.5% year over year. However, spot rates have eased from recent highs and convertible-note issuance could create dilution risk.
• The company declared a $0.45 quarterly dividend, equivalent to $1.80 annually and a 2.3% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $88.14 versus the reported share price of $77.63.

Arrowstreet Capital Limited Partnership decreased its holdings in shares of Scorpio Tankers Inc. (NYSE:STNG - Free Report) by 76.2% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 135,553 shares of the shipping company's stock after selling 434,488 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.27% of Scorpio Tankers worth $10,120,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in shares of Scorpio Tankers by 4.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,128,150 shares of the shipping company's stock worth $233,544,000 after buying an additional 122,874 shares during the period. Renaissance Technologies LLC raised its position in shares of Scorpio Tankers by 12.6% in the 4th quarter. Renaissance Technologies LLC now owns 1,223,015 shares of the shipping company's stock valued at $62,166,000 after acquiring an additional 137,000 shares during the period. Assenagon Asset Management S.A. raised its position in shares of Scorpio Tankers by 7.6% in the 1st quarter. Assenagon Asset Management S.A. now owns 918,223 shares of the shipping company's stock valued at $68,555,000 after acquiring an additional 64,511 shares during the period. AQR Capital Management LLC boosted its stake in Scorpio Tankers by 8.8% during the 3rd quarter. AQR Capital Management LLC now owns 699,040 shares of the shipping company's stock worth $39,181,000 after acquiring an additional 56,367 shares during the last quarter. Finally, Merewether Investment Management LP bought a new position in Scorpio Tankers during the 3rd quarter worth approximately $38,471,000. Institutional investors and hedge funds own 54.64% of the company's stock.

Scorpio Tankers Stock Performance

Shares of STNG stock opened at $77.63 on Friday. Scorpio Tankers Inc. has a 12 month low of $43.78 and a 12 month high of $87.39. The company's fifty day simple moving average is $76.89 and its 200-day simple moving average is $74.04. The firm has a market cap of $3.91 billion, a PE ratio of 4.85 and a beta of -0.24. The company has a quick ratio of 13.87, a current ratio of 13.98 and a debt-to-equity ratio of 0.16.

Scorpio Tankers (NYSE:STNG - Get Free Report) last released its earnings results on Thursday, July 30th. The shipping company reported $4.68 earnings per share for the quarter, beating analysts' consensus estimates of $4.56 by $0.12. Scorpio Tankers had a net margin of 67.16% and a return on equity of 16.95%. The business had revenue of $408.73 million during the quarter, compared to the consensus estimate of $398.25 million. During the same quarter last year, the firm earned $1.41 earnings per share. The firm's revenue for the quarter was up 77.5% compared to the same quarter last year. Equities research analysts expect that Scorpio Tankers Inc. will post 11 EPS for the current fiscal year.

Scorpio Tankers Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Monday, August 17th. Scorpio Tankers's dividend payout ratio is currently 17.70%.

More Scorpio Tankers News

Here are the key news stories impacting Scorpio Tankers this week:

• Positive Sentiment: Adjusted earnings and revenue topped expectations. Q2 adjusted diluted EPS was $4.68, above the $4.51 consensus estimate, while revenue reached $408.7 million versus expectations of $398.3 million. Adjusted net income rose to $243.7 million from $67.8 million a year earlier. Scorpio Tankers Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Operating performance improved sharply. Average daily time-charter-equivalent revenue more than doubled to $52,661 from $25,569, lifting adjusted EBITDA to $300.5 million from $144.5 million. Management attributed the stronger market to longer voyages and trade disruptions related to the Middle East conflict. Scorpio Tankers Q2 Results and Dividend
• Positive Sentiment: Liquidity and capital returns remain attractive. Scorpio Tankers reported approximately $2.0 billion in unrestricted cash, reduced gross debt through vessel sales and repayments, repurchased shares, and declared a $0.45 quarterly dividend payable August 31 to shareholders of record August 17.
• Positive Sentiment: Forward revenue visibility is improving. The company secured three-year time charters for three MR tankers at $23,900-$25,000 per day and continues investing in scrubber-fitted LR2, MR and VLCC newbuildings.
• Neutral Sentiment: Reported net income was boosted by nonrecurring items. Q2 net income of $387.5 million included a $154.1 million vessel-sale gain and a $13.8 million fair-value gain, making adjusted results more relevant for assessing recurring profitability.
• Negative Sentiment: Market and dilution risks remain. Spot rates declined from record highs late in the quarter, while the $605 million convertible-note issuance may dilute shareholders if converted. Higher general and administrative and vessel operating costs also offset part of the benefit from stronger freight rates.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on STNG. Morgan Stanley set a $82.00 price objective on shares of Scorpio Tankers and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Zacks Research upgraded Scorpio Tankers from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Bank of America cut Scorpio Tankers from a "buy" rating to an "underperform" rating and decreased their target price for the company from $100.00 to $78.00 in a research note on Tuesday, June 30th. Jefferies Financial Group assumed coverage on Scorpio Tankers in a research note on Friday, April 24th. They issued a "buy" rating and a $90.00 target price for the company. Finally, BTIG Research raised their price target on Scorpio Tankers from $85.00 to $100.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $88.14.

Scorpio Tankers Profile

Scorpio Tankers Inc NYSE: STNG is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.

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