Tronox (NYSE:TROX) Stock Price Down 5.4% After Analyst Downgrade

Key Points

• Tronox shares fell 5.4% after Mizuho cut its price target from $5.50 to $4.50 and maintained an “underperform” rating.
• Analyst sentiment remains weak: Tronox has an average “Reduce” rating and a consensus price target of $7.00, with four sell ratings, four holds, and one buy rating.
• The company reported a quarterly EPS loss of $0.51, missing expectations, despite revenue rising 18.7% year over year to $868 million; it also declared a quarterly dividend of $0.05 per share, implying a 5.4% yield.

Tronox Holdings PLC (NYSE:TROX - Get Free Report)'s stock price dropped 5.4% during trading on Thursday after Mizuho lowered their price target on the stock from $5.50 to $4.50. Mizuho currently has an underperform rating on the stock. Tronox traded as low as $3.75 and last traded at $3.7350. Approximately 320,769 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 3,150,729 shares. The stock had previously closed at $3.95.

A number of other brokerages also recently issued reports on TROX. Truist Financial raised Tronox from a "sell" rating to a "hold" rating and set a $7.00 price objective for the company in a research report on Thursday, June 11th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Tronox in a research report on Friday, August 7th. Wall Street Zen lowered shares of Tronox from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. JPMorgan Chase & Co. cut shares of Tronox from a "neutral" rating to an "underweight" rating and dropped their price target for the company from $7.00 to $5.00 in a research report on Thursday, August 13th. Finally, The Goldman Sachs Group reduced their price target on shares of Tronox from $9.00 to $6.50 and set a "sell" rating on the stock in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, Tronox has an average rating of "Reduce" and a consensus target price of $7.00.

Hedge Funds Weigh In On Tronox

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Marnell Management LLC purchased a new stake in Tronox during the fourth quarter worth about $83,000. Alpine Global Management LLC boosted its stake in shares of Tronox by 897.4% in the fourth quarter. Alpine Global Management LLC now owns 21,531 shares of the company's stock valued at $90,000 after purchasing an additional 24,231 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Tronox in the second quarter valued at approximately $114,000. Abel Hall LLC purchased a new stake in Tronox during the 1st quarter worth approximately $121,000. Finally, R Squared Ltd purchased a new stake in Tronox during the 1st quarter worth approximately $155,000. 73.36% of the stock is currently owned by hedge funds and other institutional investors.

Tronox Stock Performance

The stock has a market capitalization of $595.20 million, a PE ratio of -1.08 and a beta of 0.79. The company has a debt-to-equity ratio of 2.62, a quick ratio of 0.81 and a current ratio of 2.55. The firm's 50 day moving average is $5.26 and its two-hundred day moving average is $7.02.

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

Tronox Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.05 per share. The ex-dividend date is Monday, August 10th. This represents a $0.20 annualized dividend and a yield of 5.4%. Tronox's dividend payout ratio is -5.78%.

Tronox Company Profile

Tronox Holdings plc NYSE: TROX is a global producer of titanium dioxide (TiO2) pigment, a material used to provide whiteness, brightness, and opacity in paints and coatings, plastics, paper, and other products. The company also produces titanium feedstocks, zircon, and other mineral-sands products used in pigment manufacturing and a range of industrial applications.

Tronox operates an integrated business model that includes the exploration and mining of mineral sands, processing and upgrading titanium-bearing ores, manufacturing TiO2 pigment, and producing related specialty materials.

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