Thomson Reuters (NASDAQ:TRI) Trading Up 7.2% - Here's What Happened

Key Points

• Thomson Reuters shares rose 7.2% in mid-day trading, reaching $95.34 and trading near $96.61, though volume was 85% below the average.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $143.92, despite recent target-price reductions from Bank of America and Barclays.
• The company exceeded quarterly expectations with $1.23 in EPS and $2.04 billion in revenue, while its quarterly dividend of $0.655 represents a 2.7% annualized yield.

Thomson Reuters Corp (NASDAQ:TRI - Get Free Report) shares traded up 7.2% during mid-day trading on Monday . The company traded as high as $95.34 and last traded at $96.6130. 352,521 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 2,304,307 shares. The stock had previously closed at $90.15.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Bank of America lowered their target price on shares of Thomson Reuters from $115.00 to $98.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. UBS Group set a $185.74 price objective on shares of Thomson Reuters and gave the company a "buy" rating in a research report on Thursday, April 23rd. Scotiabank set a $138.00 price target on Thomson Reuters and gave the company a "sector outperform" rating in a report on Wednesday, May 6th. Argus began coverage on Thomson Reuters in a report on Wednesday, April 22nd. They set a "hold" rating on the stock. Finally, Barclays reiterated an "overweight" rating and issued a $130.00 price target (down from $170.00) on shares of Thomson Reuters in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $143.92.

Thomson Reuters Trading Up 8.4%

The business has a 50 day simple moving average of $86.04 and a 200-day simple moving average of $95.05. The stock has a market capitalization of $42.56 billion, a price-to-earnings ratio of 28.33, a price-to-earnings-growth ratio of 1.34 and a beta of 0.77. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.11.

Thomson Reuters (NASDAQ:TRI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $1.23 EPS for the quarter, topping analysts' consensus estimates of $1.18 by $0.05. Thomson Reuters had a return on equity of 14.99% and a net margin of 19.93%.The business had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $2 billion. During the same period in the prior year, the firm posted $1.12 EPS. The business's revenue for the quarter was up 9.8% on a year-over-year basis. On average, equities analysts predict that Thomson Reuters Corp will post 4.44 earnings per share for the current year.

Thomson Reuters Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 20th were paid a $0.655 dividend. The ex-dividend date was Wednesday, May 20th. This represents a $2.62 annualized dividend and a dividend yield of 2.7%. Thomson Reuters's payout ratio is 76.16%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of TRI. TLT Family Holdco ULC acquired a new position in shares of Thomson Reuters during the 2nd quarter valued at $865,442,000. SEG Family Corp. purchased a new stake in shares of Thomson Reuters in the 2nd quarter valued at approximately $659,930,000. Invesco Ltd. grew its holdings in shares of Thomson Reuters by 461.1% during the third quarter. Invesco Ltd. now owns 2,253,243 shares of the company's stock valued at $349,996,000 after buying an additional 1,851,677 shares in the last quarter. Norges Bank acquired a new position in shares of Thomson Reuters in the 4th quarter valued at about $153,417,000. Finally, Morgan Stanley increased its stake in Thomson Reuters by 31.2% in the 4th quarter. Morgan Stanley now owns 2,802,312 shares of the company's stock valued at $369,597,000 after buying an additional 665,743 shares during the period. 17.31% of the stock is currently owned by institutional investors.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information and technology solutions for professional markets, including financial services, legal, tax and accounting, and media industries. The company delivers a range of data, analytics and software tools designed to help customers make informed decisions, manage risk and stay compliant with evolving regulations. Its key offerings include the Eikon financial data platform, Westlaw legal research service, Checkpoint tax and accounting solution, and Reuters News, which supplies real‐time journalism to media organizations worldwide.

Formed in 2008 through the merger of Canada's Thomson Corporation (founded in 1934) and the UK's Reuters Group (established in 1851), Thomson Reuters has built on a legacy of journalistic integrity and information innovation.

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