Scorpio Tankers (NYSE:STNG) Shares Gap Down - What's Next?

Key Points

• Scorpio Tankers shares gapped down, opening at $83.00 after closing at $86.21, and last traded near $84.37.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $91.57; targets range from $86 to $100.
• The company reported strong quarterly results, with EPS of $4.68 and revenue of $408.73 million, while paying a $0.45 quarterly dividend. However, insiders sold more than 420,000 shares worth approximately $36.6 million over the past 90 days.

Scorpio Tankers Inc. (NYSE:STNG - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $86.21, but opened at $83.00. Scorpio Tankers shares last traded at $84.3690, with a volume of 156,640 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on STNG. Bank of America reiterated an "underperform" rating on shares of Scorpio Tankers in a research report on Tuesday, September 8th. Weiss Ratings restated a "hold (c)" rating on shares of Scorpio Tankers in a research report on Monday, September 14th. Morgan Stanley set a $86.00 target price on shares of Scorpio Tankers in a research report on Tuesday, August 18th. Evercore reissued an "outperform" rating and set a $94.00 target price on shares of Scorpio Tankers in a research note on Wednesday, July 22nd. Finally, Jefferies Financial Group restated a "buy" rating and set a $100.00 price target on shares of Scorpio Tankers in a research report on Tuesday, August 4th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Scorpio Tankers has a consensus rating of "Hold" and a consensus target price of $91.57.

Scorpio Tankers Stock Performance

The company has a current ratio of 6.93, a quick ratio of 6.89 and a debt-to-equity ratio of 0.14. The firm has a fifty day moving average price of $79.57 and a 200 day moving average price of $77.62. The firm has a market cap of $4.23 billion, a PE ratio of 5.22 and a beta of -0.22.

Scorpio Tankers (NYSE:STNG - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The shipping company reported $4.68 earnings per share for the quarter, beating 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 in the previous year, the company posted $1.41 EPS. The company's revenue was up 77.5% compared to the same quarter last year. As a group, equities research analysts expect that Scorpio Tankers Inc. will post 11.21 earnings per share for the current fiscal year.

Scorpio Tankers Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Monday, August 17th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 2.1%. The ex-dividend date was Monday, August 17th. Scorpio Tankers's payout ratio is presently 11.24%.

Insider Activity

In other news, CFO Christopher Avella sold 56,500 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $86.57, for a total transaction of $4,891,205.00. Following the completion of the sale, the chief financial officer owned 178,834 shares in the company, valued at $15,481,659.38. This trade represents a 24.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, President Robert Bugbee sold 231,799 shares of Scorpio Tankers stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $86.19, for a total transaction of $19,978,755.81. Following the sale, the president directly owned 665,288 shares in the company, valued at approximately $57,341,172.72. The trade was a 25.84% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 420,133 shares of company stock worth $36,611,311. Corporate insiders own 7.34% of the company's stock.

Hedge Funds Weigh In On Scorpio Tankers

Several large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP lifted 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 last quarter. Assenagon Asset Management S.A. raised its stake in Scorpio Tankers by 7.6% during the 1st quarter. Assenagon Asset Management S.A. now owns 918,223 shares of the shipping company's stock worth $68,555,000 after acquiring an additional 64,511 shares in the last quarter. Empowered Funds LLC raised its stake in Scorpio Tankers by 20.9% during the 1st quarter. Empowered Funds LLC now owns 240,545 shares of the shipping company's stock worth $17,959,000 after acquiring an additional 41,516 shares in the last quarter. Sei Investments Co. lifted its position in Scorpio Tankers by 47.5% in the first quarter. Sei Investments Co. now owns 118,751 shares of the shipping company's stock valued at $8,865,000 after acquiring an additional 38,216 shares during the last quarter. Finally, Integrated Advisors Network LLC purchased a new stake in Scorpio Tankers in the first quarter valued at $2,527,000. Institutional investors and hedge funds own 54.64% of the company's stock.

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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