Scorpio Tankers (NYSE:STNG) Hits New 52-Week High - Time to Buy?

Key Points

• New 52-week high: Scorpio Tankers shares reached $81.90, trading well above its 50-day ($74.18) and 200-day ($63.94) moving averages, and carry an average analyst rating of "Moderate Buy" with an average price target of $85.50 (Jefferies $90).
• Earnings beat: The company reported Q4 EPS of $1.62 vs. $1.37 expected and revenue of $252.65M vs. $238.93M, with revenue up 23.8% year‑over‑year and a 36.7% net margin.
• Dividend and balance-sheet strength: Scorpio Tankers raised its quarterly dividend to $0.45 (annualized $1.80, yield ~2.2%) and shows strong liquidity (quick ratio 9.23) with low leverage (debt/equity 0.19) and ~54.6% institutional ownership.

Scorpio Tankers Inc. (NYSE:STNG - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $81.90 and last traded at $81.3520, with a volume of 593786 shares. The stock had previously closed at $79.74.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on STNG. Moffett Nathanson raised Scorpio Tankers to a "neutral" rating in a report on Monday, January 12th. Bank of America boosted their target price on Scorpio Tankers from $70.00 to $72.00 and gave the stock an "underperform" rating in a research report on Tuesday, March 31st. Jefferies Financial Group initiated coverage on shares of Scorpio Tankers in a research note on Friday. They set a "buy" rating and a $90.00 target price on the stock. B. Riley Financial reiterated a "buy" rating on shares of Scorpio Tankers in a research note on Friday, February 13th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Scorpio Tankers in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $85.50.

Scorpio Tankers Stock Up 2.0%

The company has a market cap of $4.21 billion, a P/E ratio of 11.51 and a beta of -0.32. The company has a quick ratio of 9.23, a current ratio of 9.33 and a debt-to-equity ratio of 0.19. The company has a fifty day moving average of $74.18 and a 200 day moving average of $63.94.

Scorpio Tankers (NYSE:STNG - Get Free Report) last posted its earnings results on Friday, February 13th. The shipping company reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.37 by $0.25. The company had revenue of $252.65 million for the quarter, compared to the consensus estimate of $238.93 million. Scorpio Tankers had a return on equity of 8.85% and a net margin of 36.70%.Scorpio Tankers's revenue was up 23.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.63 earnings per share. On average, research analysts anticipate that Scorpio Tankers Inc. will post 8.49 earnings per share for the current fiscal year.

Scorpio Tankers Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, March 6th. This is a positive change from Scorpio Tankers's previous quarterly dividend of $0.42. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.2%. Scorpio Tankers's payout ratio is 25.46%.

Institutional Trading of Scorpio Tankers

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in STNG. SBI Securities Co. Ltd. boosted its stake in shares of Scorpio Tankers by 110.3% during the 3rd quarter. SBI Securities Co. Ltd. now owns 469 shares of the shipping company's stock worth $26,000 after acquiring an additional 246 shares during the last quarter. Global Retirement Partners LLC raised its holdings in Scorpio Tankers by 1,645.2% in the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company's stock worth $27,000 after purchasing an additional 510 shares during the period. Clearstead Advisors LLC raised its holdings in Scorpio Tankers by 67.9% in the 3rd quarter. Clearstead Advisors LLC now owns 507 shares of the shipping company's stock worth $28,000 after purchasing an additional 205 shares during the period. Zions Bancorporation National Association UT purchased a new position in Scorpio Tankers during the fourth quarter valued at $29,000. Finally, Smartleaf Asset Management LLC lifted its position in Scorpio Tankers by 154.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 646 shares of the shipping company's stock valued at $33,000 after purchasing an additional 392 shares in the last quarter. 54.64% of the stock is owned by hedge funds and other institutional investors.

About Scorpio Tankers

Scorpio Tankers Inc NYSE: STNG is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.

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