Scorpio Tankers (NYSE:STNG) Shares Gap Up After Analyst Upgrade

Key Points

• Scorpio Tankers saw its stock price rise significantly following upgrades from Jefferies Financial Group and Bank of America, with target prices now set at $70.00 and $60.00 respectively.
• Institutional investment in Scorpio Tankers has increased, with Osaic Holdings raising its stake by 231.7% and several other firms acquiring new positions.
• The company recently announced a $0.40 per share quarterly dividend, representing a yield of 2.8% and a payout ratio of 21.80%.

Scorpio Tankers Inc. (NYSE:STNG - Get Free Report) gapped up prior to trading on Monday after Jefferies Financial Group raised their price target on the stock from $65.00 to $70.00. The stock had previously closed at $53.05, but opened at $55.99. Jefferies Financial Group currently has a buy rating on the stock. Scorpio Tankers shares last traded at $57.02, with a volume of 708,414 shares trading hands.

Separately, Bank of America upgraded Scorpio Tankers from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $49.00 to $60.00 in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Buy" and an average target price of $59.00.

Institutional Trading of Scorpio Tankers

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Osaic Holdings Inc. raised its holdings in shares of Scorpio Tankers by 231.7% in the second quarter. Osaic Holdings Inc. now owns 11,527 shares of the shipping company's stock valued at $451,000 after purchasing an additional 8,052 shares during the last quarter. Marex Group plc acquired a new stake in shares of Scorpio Tankers in the second quarter valued at approximately $901,000. State of Wyoming acquired a new stake in shares of Scorpio Tankers in the second quarter valued at about $344,000. Headlands Technologies LLC acquired a new stake in shares of Scorpio Tankers in the second quarter valued at about $150,000. Finally, Tower Research Capital LLC TRC increased its position in shares of Scorpio Tankers by 19.9% in the second quarter. Tower Research Capital LLC TRC now owns 4,399 shares of the shipping company's stock valued at $172,000 after acquiring an additional 729 shares during the last quarter. 54.64% of the stock is currently owned by institutional investors and hedge funds.

Scorpio Tankers Trading Up 8.5%

The company has a debt-to-equity ratio of 0.28, a current ratio of 4.95 and a quick ratio of 4.83. The business has a 50-day moving average of $45.88 and a 200-day moving average of $41.48. The firm has a market cap of $2.94 billion, a price-to-earnings ratio of 7.83 and a beta of 0.03.

Scorpio Tankers (NYSE:STNG - Get Free Report) last released its earnings results on Wednesday, July 30th. The shipping company reported $1.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.38. The business had revenue of $222.76 million for the quarter, compared to the consensus estimate of $219.26 million. Scorpio Tankers had a return on equity of 8.08% and a net margin of 39.18%.Scorpio Tankers's quarterly revenue was down 39.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.60 earnings per share. Research analysts anticipate that Scorpio Tankers Inc. will post 5.29 EPS for the current year.

Scorpio Tankers Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Wednesday, August 13th were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Wednesday, August 13th. Scorpio Tankers's payout ratio is presently 21.80%.

Scorpio Tankers Company Profile

Scorpio Tankers Inc, together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years.

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