Scorpio Tankers (NYSE:STNG) Shares Climb 4.2% - Time to Buy?

Key Points

• Scorpio Tankers shares rose 4.2% to about $84.91, while trading volume was 62% below the average. Analysts’ average rating remains “Hold,” with an average price target of $91.57.
• The company reported strong quarterly results, including EPS of $4.68 versus the $4.56 consensus and revenue of $408.73 million, up 77.5% year over year. It also declared a $0.45 quarterly dividend, yielding approximately 2.2% annually.
• Insiders sold 420,133 shares worth roughly $36.6 million over the past 90 days, while institutional investors own 54.64% of the stock. Scorpio Tankers has relatively low leverage, with a debt-to-equity ratio of 0.14.

Scorpio Tankers Inc. (NYSE:STNG - Get Free Report)'s stock price traded up 4.2% on Monday. The stock traded as high as $84.47 and last traded at $84.9080. Approximately 392,755 shares were traded during trading, a decline of 62% from the average daily volume of 1,022,765 shares. The stock had previously closed at $81.49.

Analyst Ratings Changes

STNG has been the subject of several analyst reports. Jefferies Financial Group reaffirmed a "buy" rating and set a $100.00 price target on shares of Scorpio Tankers in a research note on Tuesday, August 4th. Bank of America restated an "underperform" rating on shares of Scorpio Tankers in a report on Tuesday, September 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Scorpio Tankers in a research report on Monday, September 14th. Morgan Stanley set a $86.00 price target on Scorpio Tankers in a research report on Tuesday, August 18th. Finally, BTIG Research increased their price target on Scorpio Tankers from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Friday, September 18th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $91.57.

Scorpio Tankers Trading Up 1.8%

The company has a debt-to-equity ratio of 0.14, a current ratio of 6.93 and a quick ratio of 6.89. The firm's fifty day moving average is $79.88 and its two-hundred day moving average is $77.72. The firm has a market capitalization of $4.18 billion, a PE ratio of 5.19 and a beta of -0.22.

Scorpio Tankers (NYSE:STNG - Get Free Report) last posted its earnings results on Thursday, July 30th. The shipping company reported $4.68 EPS 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 16.43%. The firm had revenue of $408.73 million for the quarter, compared to analysts' expectations of $398.25 million. During the same quarter last year, the firm earned $1.41 EPS. The company's quarterly revenue was up 77.5% compared to the same quarter last year. On average, equities analysts predict that Scorpio Tankers Inc. will post 11.21 EPS for the current fiscal year.

Scorpio Tankers Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 17th were issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Monday, August 17th. Scorpio Tankers's dividend payout ratio (DPR) is 11.24%.

Insiders Place Their Bets

In other Scorpio Tankers news, COO Cameron Mackey sold 125,000 shares of the company's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $89.03, for a total value of $11,128,750.00. Following the completion of the transaction, the chief operating officer owned 739,531 shares in the company, valued at $65,840,444.93. This represents a 14.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Christopher Avella sold 56,500 shares of Scorpio Tankers stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $86.57, for a total value of $4,891,205.00. Following the sale, the chief financial officer owned 178,834 shares in the company, valued at $15,481,659.38. The trade was a 24.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 420,133 shares of company stock worth $36,611,311 over the last 90 days. Company insiders own 7.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of STNG. Assetmark Inc. bought a new stake in shares of Scorpio Tankers in the first quarter valued at $28,000. Root Financial Partners LLC grew its stake in shares of Scorpio Tankers by 193.9% during the 1st quarter. Root Financial Partners LLC now owns 526 shares of the shipping company's stock worth $39,000 after acquiring an additional 347 shares during the period. Pinnacle Holdings LLC purchased a new stake in Scorpio Tankers in the 2nd quarter worth about $48,000. Public Employees Retirement System of Ohio purchased a new stake in Scorpio Tankers in the 2nd quarter worth about $92,000. Finally, Rockefeller Capital Management L.P. raised its stake in Scorpio Tankers by 37.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,081 shares of the shipping company's stock valued at $106,000 after acquiring an additional 562 shares during the period. 54.64% of the stock is owned by institutional investors.

About Scorpio Tankers

Scorpio Tankers Inc is a marine transportation company that owns, operates and manages a fleet of product tankers. The company transports refined petroleum products, including gasoline, diesel, jet fuel and heating oil, as well as certain petrochemical feedstocks, for energy companies, commodity traders and other commercial customers.

Scorpio Tankers' fleet has included medium-range, long-range and handymax product tankers, which serve different trade routes and cargo requirements. Its vessels operate internationally, carrying refined petroleum products between major refining, storage and consumption centers across regions including the Americas, Europe, the Middle East and Asia.

The company was established in 2009 and is headquartered in Monaco.

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