Thomson Reuters (NYSE:TRI) Stock Price Down 5.5% - What's Next?

Key Points

• Shares fell 5.5% intraday to $105.41 (trading as low as $103.72) while volume was about 71% below its average, marking a notable pullback from a prior close of $111.52.
• Analysts remain split but overall positive with a consensus of "Moderate Buy" and an average target of $156.42 (11 Buys, 3 Holds), though recent cuts—like JPMorgan's $100 target—highlight divergent views on near-term valuation.
• Thomson Reuters beat EPS estimates ($1.07 vs. $1.06) and reported 5.2% revenue growth year-over-year, and it increased its quarterly dividend to $0.655 (annual $2.62, yield ~2.5%) despite a relatively high payout ratio (~78.7%).

Thomson Reuters Co. (NYSE:TRI - Get Free Report) TSE: TRI shares dropped 5.5% during mid-day trading on Tuesday . The company traded as low as $103.72 and last traded at $105.41. Approximately 827,474 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 2,836,112 shares. The stock had previously closed at $111.52.

Analyst Upgrades and Downgrades

TRI has been the topic of several recent analyst reports. Wells Fargo & Company set a $140.00 price target on Thomson Reuters and gave the company an "overweight" rating in a research note on Wednesday, February 4th. TD Securities reiterated a "buy" rating on shares of Thomson Reuters in a research note on Friday, February 6th. JPMorgan Chase & Co. cut their price objective on Thomson Reuters from $160.00 to $100.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Canadian Imperial Bank of Commerce set a $183.00 target price on shares of Thomson Reuters and gave the stock an "outperformer" rating in a report on Friday, January 16th. Finally, Canaccord Genuity Group dropped their target price on shares of Thomson Reuters from $174.00 to $130.00 and set a "buy" rating for the company in a research report on Wednesday, February 4th. Eleven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $156.42.

Thomson Reuters Price Performance

The stock has a fifty day moving average of $108.80 and a two-hundred day moving average of $136.07. The company has a current ratio of 1.02, a quick ratio of 0.94 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $46.10 billion, a price-to-earnings ratio of 21.19, a PEG ratio of 5.67 and a beta of 0.81.

Thomson Reuters (NYSE:TRI - Get Free Report) TSE: TRI last posted its quarterly earnings data on Thursday, February 5th. The business services provider reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.01. Thomson Reuters had a return on equity of 14.62% and a net margin of 30.45%.The company had revenue of $2 billion for the quarter, compared to analyst estimates of $2 billion. During the same quarter in the previous year, the firm earned $1.01 earnings per share. The business's revenue was up 5.2% on a year-over-year basis. As a group, equities research analysts forecast that Thomson Reuters Co. will post 3.89 earnings per share for the current year.

Thomson Reuters Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 17th will be issued a dividend of $0.655 per share. The ex-dividend date of this dividend is Tuesday, February 17th. This represents a $2.62 dividend on an annualized basis and a yield of 2.5%. This is an increase from Thomson Reuters's previous quarterly dividend of $0.60. Thomson Reuters's payout ratio is currently 78.68%.

Hedge Funds Weigh In On Thomson Reuters

Large investors have recently modified their holdings of the stock. Brighton Jones LLC acquired a new stake in shares of Thomson Reuters in the fourth quarter valued at approximately $448,000. AQR Capital Management LLC boosted its position in Thomson Reuters by 30.3% in the 1st quarter. AQR Capital Management LLC now owns 17,152 shares of the business services provider's stock valued at $2,964,000 after buying an additional 3,988 shares during the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Thomson Reuters in the 1st quarter valued at $205,000. Bank of New York Mellon Corp increased its stake in shares of Thomson Reuters by 5.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 214,304 shares of the business services provider's stock valued at $43,103,000 after buying an additional 10,370 shares during the period. Finally, Savant Capital LLC raised its position in shares of Thomson Reuters by 25.3% during the second quarter. Savant Capital LLC now owns 4,080 shares of the business services provider's stock worth $821,000 after acquiring an additional 823 shares during the last quarter. 17.31% of the stock is currently owned by institutional investors and hedge funds.

About Thomson Reuters

Thomson Reuters NYSE: TRI is a multinational information and media company that provides content, technology and services to professionals in the legal, tax & accounting, compliance, risk, corporate and media sectors. Headquartered in Toronto, Canada, the company combines news and editorial content from the Reuters news agency with specialist workflow platforms and databases designed to support decision-making and regulatory compliance across industries worldwide.

The company's product portfolio spans legal research and workflow tools, tax and accounting software, regulatory and risk management solutions, and real-time news and data services.

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