Tronox (NYSE:TROX) Stock Falls 7.6% - What's Next?

Key Points

• Tronox shares fell 7.6% to about $3.36, trading well below their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $537 million.
• Analyst sentiment remains negative: the consensus rating is “Reduce”, with one Buy, four Hold, and four Sell ratings. Recent price-target cuts place the average target at $5.83.
• Tronox reported a quarterly loss of $0.51 per share, missing expectations by $0.13, despite revenue of $868 million that exceeded estimates. The company paid a $0.05 quarterly dividend, representing a 5.9% yield.

Shares of Tronox Holdings PLC (NYSE:TROX - Get Free Report) fell 7.6% during trading on Monday. The company traded as low as $3.41 and last traded at $3.3550. Approximately 597,647 shares were traded during trading, a decline of 81% from the average daily volume of 3,110,396 shares. The stock had previously closed at $3.63.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on TROX shares. UBS Group decreased their price target on shares of Tronox from $7.00 to $4.50 and set a "neutral" rating for the company in a research note on Monday, October 5th. JPMorgan Chase & Co. cut shares of Tronox from a "neutral" rating to an "underweight" rating and lowered their price target for the company from $7.00 to $5.00 in a research report on Thursday, August 13th. The Goldman Sachs Group reissued a "sell" rating and set a $4.00 price objective on shares of Tronox in a research note on Friday. Weiss Ratings restated a "sell (d-)" rating on shares of Tronox in a report on Friday, August 7th. Finally, Mizuho decreased their target price on shares of Tronox from $5.50 to $4.50 and set an "underperform" rating for the company in a research note on Wednesday, September 30th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $5.83.

Tronox Stock Down 7.3%

The company has a quick ratio of 0.81, a current ratio of 2.55 and a debt-to-equity ratio of 2.62. The company has a fifty day simple moving average of $4.93 and a 200 day simple moving average of $6.85. The firm has a market capitalization of $537.39 million, a P/E ratio of -0.97 and a beta of 0.92.

Tronox (NYSE:TROX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.51) earnings per share for the quarter, missing the consensus estimate of ($0.38) by ($0.13). The company had revenue of $868.00 million for the quarter, compared to the consensus estimate of $832.59 million. Tronox had a negative net margin of 17.96% and a negative return on equity of 24.34%. Tronox's revenue was up 18.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.28) earnings per share. On average, equities analysts expect that Tronox Holdings PLC will post -1.37 EPS for the current fiscal year.

Tronox Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Monday, August 10th were given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 5.9%. The ex-dividend date of this dividend was Monday, August 10th. Tronox's dividend payout ratio is -5.78%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TROX. Shah Capital Management increased 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 in the last quarter. CoreCap Advisors LLC purchased a new position in shares of Tronox in the third quarter worth $30,000. Squarepoint Ops LLC bought a new position in shares of Tronox during the second quarter valued at $4,355,000. AlphaGrep UK Ltd bought a new position in shares of Tronox during the second quarter valued at $198,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Tronox during the second quarter valued at $114,000. 73.36% of the stock is owned by hedge funds and other institutional investors.

About Tronox

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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