Tronox (NYSE:TROX) Stock Falls 4.6% - Here's Why

Key Points

• Tronox shares fell 4.6% to approximately $3.24, with trading volume 91% below the average daily level.
• Analyst sentiment remains negative: Mizuho, Goldman Sachs and UBS lowered their price targets, while Zacks Research downgraded the stock to “strong sell.” The consensus rating is “Reduce,” with a $5.33 target.
• Tronox reported a quarterly EPS loss of $0.51, missing estimates, despite revenue rising 18.7% year over year. The company continues to pay a $0.05 quarterly dividend, equivalent to a 6.2% yield.

Tronox Holdings PLC (NYSE:TROX - Get Free Report) traded down 4.6% on Wednesday. The stock traded as low as $3.26 and last traded at $3.2350. 272,827 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 3,076,645 shares. The stock had previously closed at $3.39.

Analyst Upgrades and Downgrades

Several research firms recently commented on TROX. Mizuho cut their price objective on shares of Tronox from $5.50 to $4.50 and set an "underperform" rating for the company in a report on Wednesday, September 30th. The Goldman Sachs Group lowered their price target on shares of Tronox from $6.50 to $4.00 and set a "sell" rating for the company in a research report on Friday, October 9th. Zacks Research lowered shares of Tronox from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 15th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Tronox in a research note on Friday, August 7th. Finally, UBS Group dropped their price objective on Tronox from $7.00 to $4.50 and set a "neutral" rating for the company in a report on Monday, October 5th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $5.33.

Tronox Stock Down 4.9%

The company has a current ratio of 2.55, a quick ratio of 0.81 and a debt-to-equity ratio of 2.62. The company has a market capitalization of $515.03 million, a price-to-earnings ratio of -0.93 and a beta of 0.92. The firm's fifty day simple moving average is $4.55 and its two-hundred day simple moving average is $6.57.

Tronox (NYSE:TROX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.51) EPS for the quarter, missing analysts' consensus estimates of ($0.38) by ($0.13). The firm had revenue of $868.00 million for the quarter, compared to analyst estimates of $832.59 million. Tronox had a negative return on equity of 24.34% and a negative net margin of 17.96%. The firm's revenue for the quarter was up 18.7% on a year-over-year basis. During the same quarter last year, the company earned ($0.28) earnings per share. Sell-side analysts anticipate that Tronox Holdings PLC will post -1.41 EPS for the current year.

Tronox Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Monday, August 10th were issued a dividend of $0.05 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 6.2%. Tronox's dividend payout ratio (DPR) is currently -5.78%.

Hedge Funds Weigh In On Tronox

Several hedge funds and other institutional investors have recently bought and sold shares of TROX. Shah Capital Management raised its holdings in shares of Tronox by 13.4% in the 3rd quarter. Shah Capital Management now owns 2,915,807 shares of the company's stock worth $11,517,000 after purchasing an additional 344,993 shares during the period. Royal Bank of Canada grew its position in shares of Tronox by 21,419.9% in the 1st quarter. Royal Bank of Canada now owns 1,065,665 shares of the company's stock worth $10,412,000 after acquiring an additional 1,060,713 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Tronox by 0.6% during the first quarter. Bank of New York Mellon Corp now owns 500,461 shares of the company's stock valued at $4,890,000 after purchasing an additional 3,225 shares during the last quarter. Squarepoint Ops LLC bought a new stake in shares of Tronox during the 2nd quarter valued at about $4,355,000. Finally, Swiss National Bank lifted its holdings in Tronox by 2.6% in the first quarter. Swiss National Bank now owns 235,300 shares of the company's stock worth $2,299,000 after acquiring an additional 5,900 shares during the last quarter. 73.36% of the stock is owned by institutional investors and hedge funds.

Tronox Company Profile

Tronox Holdings plc NYSE: TROX is a global producer of titanium dioxide pigment, a white pigment used to provide brightness, opacity and durability in products such as paints and coatings, plastics, paper and specialty materials. The company also produces titanium feedstocks, including titanium slag and synthetic rutile, as well as zircon and other mineral-sands products.

Tronox operates an integrated business that spans the mining and processing of mineral sands, the production of titanium feedstocks and the manufacture of titanium dioxide pigment.

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