Thomson Reuters (NASDAQ:TRI) Shares Down 4.9% - Here's Why

Key Points

• Thomson Reuters shares fell 4.9% to about $106.33, with trading volume down 95% from the average daily level.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $131.57, though targets range from $85 to $135.
• The company recently beat quarterly estimates, reporting $0.99 EPS and $1.93 billion in revenue, while revenue grew 9.5% year over year. Thomson Reuters also announced a quarterly dividend of $0.655 per share, yielding about 2.5% annually.

Thomson Reuters Corp (NASDAQ:TRI - Get Free Report) fell 4.9% during trading on Friday . The company traded as low as $105.26 and last traded at $106.3330. 106,494 shares were traded during trading, a decline of 95% from the average daily volume of 2,269,819 shares. The stock had previously closed at $111.76.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. 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. Bank of America dropped their price target on shares of Thomson Reuters from $115.00 to $98.00 and set a "neutral" rating for the company in a research report on Tuesday, May 19th. TD Securities reaffirmed a "buy" rating on shares of Thomson Reuters in a research note on Thursday, August 6th. Scotia decreased their price target on shares of Thomson Reuters from $138.00 to $135.00 and set a "sector outperform" rating on the stock in a report on Thursday, August 6th. Finally, Wells Fargo & Company set a $85.00 price objective on shares of Thomson Reuters and gave the company an "equal weight" rating in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $131.57.

Thomson Reuters Stock Down 4.5%

The firm has a market capitalization of $46.48 billion, a price-to-earnings ratio of 28.35, a price-to-earnings-growth ratio of 2.04 and a beta of 0.74. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.12. The firm has a 50 day moving average price of $97.89 and a two-hundred day moving average price of $92.99.

Thomson Reuters (NASDAQ:TRI - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.96 by $0.03. Thomson Reuters had a net margin of 21.22% and a return on equity of 15.82%. The firm had revenue of $1.93 billion during the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter in the prior year, the company earned $0.87 EPS. The company's revenue was up 9.5% on a year-over-year basis. On average, equities analysts expect that Thomson Reuters Corp will post 4.45 earnings per share for the current fiscal year.

Thomson Reuters Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be given a $0.655 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.62 annualized dividend and a dividend yield of 2.5%. Thomson Reuters's dividend payout ratio is presently 69.68%.

Hedge Funds Weigh In On Thomson Reuters

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Empowered Funds LLC acquired a new stake in Thomson Reuters in the 4th quarter valued at $30,000. Timmons Wealth Management LLC purchased a new position in Thomson Reuters in the fourth quarter valued at about $42,000. Continuum Advisory LLC acquired a new position in shares of Thomson Reuters during the second quarter worth about $45,000. Western Wealth Management LLC acquired a new position in shares of Thomson Reuters during the first quarter worth about $48,000. Finally, J.Safra Asset Management Corp purchased a new stake in shares of Thomson Reuters in the fourth quarter worth about $56,000. Institutional investors and hedge funds own 17.31% of the company's stock.

About Thomson Reuters

Thomson Reuters is a global provider of information and technology solutions for professional markets, including financial services, legal, tax and accounting, and media industries. The company delivers a range of data, analytics and software tools designed to help customers make informed decisions, manage risk and stay compliant with evolving regulations. Its key offerings include the Eikon financial data platform, Westlaw legal research service, Checkpoint tax and accounting solution, and Reuters News, which supplies real‐time journalism to media organizations worldwide.

Formed in 2008 through the merger of Canada's Thomson Corporation (founded in 1934) and the UK's Reuters Group (established in 1851), Thomson Reuters has built on a legacy of journalistic integrity and information innovation.

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