Silverback Asset Management LLC Cuts Stake in Scorpio Tankers Inc. $STNG

Key Points

• Silverback Asset Management cut its Scorpio Tankers stake by 66.7% in the first quarter, selling 20,000 shares and retaining 10,000 shares valued at approximately $747,000. Institutional investors collectively own 54.64% of STNG.
• Scorpio Tankers delivered a strong second quarter, reporting adjusted EPS of $4.68 and revenue of $408.7 million, both above analyst expectations. Adjusted net income surged to $243.7 million, supported by sharply higher tanker rates and EBITDA.
• The company declared a $0.45 quarterly dividend, equivalent to a 2.3% yield, while analysts maintain a “Moderate Buy” consensus with an average price target of $88.14. Risks include declining spot rates and potential shareholder dilution from convertible notes.

Silverback Asset Management LLC cut its holdings in shares of Scorpio Tankers Inc. (NYSE:STNG - Free Report) by 66.7% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 10,000 shares of the shipping company's stock after selling 20,000 shares during the period. Silverback Asset Management LLC's holdings in Scorpio Tankers were worth $747,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Scorpio Tankers by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,500 shares of the shipping company's stock worth $996,000 after buying an additional 1,144 shares during the last quarter. Intech Investment Management LLC increased its position in Scorpio Tankers by 9.4% during the 1st quarter. Intech Investment Management LLC now owns 32,478 shares of the shipping company's stock valued at $1,221,000 after buying an additional 2,802 shares in the last quarter. Legal & General Group Plc raised its stake in Scorpio Tankers by 11.2% in the second quarter. Legal & General Group Plc now owns 9,985 shares of the shipping company's stock valued at $391,000 after buying an additional 1,005 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Scorpio Tankers by 593.1% in the second quarter. EverSource Wealth Advisors LLC now owns 2,807 shares of the shipping company's stock valued at $110,000 after buying an additional 2,402 shares during the last quarter. Finally, Marshall Wace LLP boosted its holdings in Scorpio Tankers by 3.1% in the second quarter. Marshall Wace LLP now owns 151,604 shares of the shipping company's stock worth $5,932,000 after acquiring an additional 4,618 shares in the last quarter. Hedge funds and other institutional investors own 54.64% of the company's stock.

Scorpio Tankers News Summary

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.

Analyst Ratings Changes

Several equities analysts have recently issued reports on STNG shares. Morgan Stanley set a $82.00 price objective on shares of Scorpio Tankers and gave the company an "equal weight" rating in a report on Thursday, July 9th. Bank of America downgraded shares of Scorpio Tankers from a "buy" rating to an "underperform" rating and dropped their target price for the stock from $100.00 to $78.00 in a research report on Tuesday, June 30th. Weiss Ratings restated a "hold (c)" rating on shares of Scorpio Tankers in a research note on Thursday, June 18th. BTIG Research raised their price target on shares of Scorpio Tankers from $85.00 to $100.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Evercore reiterated an "outperform" rating and set a $94.00 price objective on shares of Scorpio Tankers in a research note on Wednesday, July 22nd. One investment 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 issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Scorpio Tankers has a consensus rating of "Moderate Buy" and an average price target of $88.14.

Scorpio Tankers Trading Up 2.8%

Shares of NYSE:STNG opened at $77.63 on Friday. Scorpio Tankers Inc. has a 52-week low of $43.78 and a 52-week high of $87.39. The stock has a market cap of $3.91 billion, a price-to-earnings 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. The business has a 50-day moving average price of $76.89 and a 200-day moving average price of $74.04.

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

Scorpio Tankers Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Monday, August 17th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, August 17th. Scorpio Tankers's dividend payout ratio (DPR) is 17.70%.

About Scorpio Tankers

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.