Scorpio Tankers (NYSE:STNG) Stock Price Down 4.3% - Should You Sell?

Key Points

• Shares fell 4.3% to about $71.90 on Wednesday on light volume (444,866 shares, ~64% below average); analysts have a consensus rating of "Moderate Buy" with an average target of $79.67.
• Scorpio Tankers reported quarterly EPS of $1.62 (vs. $1.37 expected) and revenue of $252.7M (up 23.8% YoY), and analysts forecast roughly 5.29 EPS for the full year.
• The company raised its quarterly dividend to $0.45 (annualized $1.80, ~2.5% yield) and presents solid fundamentals with a P/E of 10.24, low debt-to-equity (0.19), very high current/quick ratios (~9.3), and over 54% institutional ownership.

Shares of Scorpio Tankers Inc. (NYSE:STNG - Get Free Report) traded down 4.3% during trading on Wednesday . The stock traded as low as $71.74 and last traded at $71.8960. 444,866 shares traded hands during trading, a decline of 64% from the average session volume of 1,230,161 shares. The stock had previously closed at $75.12.

Analysts Set New Price Targets

A number of research firms recently issued reports on STNG. BTIG Research lifted their price target on Scorpio Tankers from $80.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Zacks Research raised shares of Scorpio Tankers from a "strong sell" rating to a "hold" rating in a report on Friday, February 13th. Bank of America restated an "underperform" rating on shares of Scorpio Tankers in a research report on Monday, March 9th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $83.00 target price 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 research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $79.67.

Scorpio Tankers Trading Down 3.6%

The stock has a market capitalization of $3.75 billion, a P/E ratio of 10.24 and a beta of -0.31. The company has a debt-to-equity ratio of 0.19, a current ratio of 9.33 and a quick ratio of 9.23. The business's 50 day simple moving average is $68.28 and its 200-day simple moving average is $60.93.

Scorpio Tankers (NYSE:STNG - Get Free Report) last issued its earnings results on Thursday, February 12th. The shipping company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.37 by $0.25. The company had revenue of $252.65 million during the quarter, compared to analysts' expectations of $238.93 million. Scorpio Tankers had a net margin of 36.70% and a return on equity of 8.85%. The business's revenue for the quarter was up 23.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.63 EPS. As a group, analysts forecast that Scorpio Tankers Inc. will post 5.29 EPS for the current year.

Scorpio Tankers Increases Dividend

The business 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. This is a boost from Scorpio Tankers's previous quarterly dividend of $0.42. This represents a $1.80 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Friday, March 6th. Scorpio Tankers's dividend payout ratio is currently 25.46%.

Hedge Funds Weigh In On Scorpio Tankers

Several hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP grew its position in shares of Scorpio Tankers by 2.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,005,276 shares of the shipping company's stock worth $152,757,000 after buying an additional 60,401 shares during the period. American Century Companies Inc. raised its position in shares of Scorpio Tankers by 7.6% in the 3rd quarter. American Century Companies Inc. now owns 1,913,729 shares of the shipping company's stock valued at $107,265,000 after acquiring an additional 135,123 shares during the period. Victory Capital Management Inc. boosted its stake in Scorpio Tankers by 7.1% during the 3rd quarter. Victory Capital Management Inc. now owns 1,249,834 shares of the shipping company's stock worth $70,053,000 after acquiring an additional 83,294 shares during the last quarter. Renaissance Technologies LLC grew its holdings in Scorpio Tankers by 12.6% during the fourth quarter. Renaissance Technologies LLC now owns 1,223,015 shares of the shipping company's stock valued at $62,166,000 after purchasing an additional 137,000 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in Scorpio Tankers by 136.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 853,712 shares of the shipping company's stock valued at $43,394,000 after purchasing an additional 492,584 shares during the period. Institutional investors and hedge funds own 54.64% of the company's stock.

Scorpio Tankers Company Profile

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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