Thomson Reuters (NYSE:TRI) Trading Down 5.1% - Here's Why

Key Points

• Thomson Reuters shares fell 5.1% on Thursday, dropping to $160.66, with trading volume surging to approximately 1.87 million shares.
• Analysts' ratings have been mixed, with Morgan Stanley cutting its target price to $187.00, while several other firms maintained "outperform" ratings with varied price targets.
• The company reported a quarterly earnings per share (EPS) of $0.87, surpassing estimates, and announced a dividend of $0.595 per share, giving it a dividend yield of 1.5%.

Thomson Reuters Co. (NYSE:TRI - Get Free Report) TSE: TRI shares dropped 5.1% on Thursday . The stock traded as low as $160.95 and last traded at $160.66. Approximately 1,869,996 shares were traded during trading, an increase of 107% from the average daily volume of 904,674 shares. The stock had previously closed at $169.21.

Analyst Ratings Changes

Several brokerages recently issued reports on TRI. Morgan Stanley cut their target price on shares of Thomson Reuters from $197.00 to $187.00 and set an "equal weight" rating on the stock in a research note on Thursday, September 11th. National Bankshares reaffirmed an "outperform" rating on shares of Thomson Reuters in a research note on Thursday, July 10th. CIBC raised shares of Thomson Reuters from a "neutral" rating to an "outperform" rating in a research note on Tuesday, August 19th. TD Securities raised shares of Thomson Reuters from a "hold" rating to a "buy" rating and raised their price objective for the company from $275.00 to $285.00 in a research note on Thursday, August 28th. Finally, Canaccord Genuity Group raised their price objective on shares of Thomson Reuters from $181.00 to $182.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. Six equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $202.82.

Thomson Reuters Price Performance

The business's fifty day moving average is $185.98 and its 200-day moving average is $185.25. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 0.94. The firm has a market cap of $72.38 billion, a PE ratio of 32.84, a P/E/G ratio of 5.67 and a beta of 0.74.

Thomson Reuters (NYSE:TRI - Get Free Report) TSE: TRI last posted its quarterly earnings data on Wednesday, August 6th. The business services provider reported $0.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.83 by $0.04. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.79 billion. Thomson Reuters had a net margin of 30.45% and a return on equity of 14.62%. The firm's quarterly revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.85 earnings per share. On average, research analysts predict that Thomson Reuters Co. will post 3.89 earnings per share for the current fiscal year.

Thomson Reuters Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Stockholders of record on Tuesday, August 19th were paid a $0.595 dividend. The ex-dividend date was Tuesday, August 19th. This represents a $2.38 annualized dividend and a dividend yield of 1.5%. Thomson Reuters's dividend payout ratio (DPR) is presently 65.75%.

Hedge Funds Weigh In On Thomson Reuters

Large investors have recently modified their holdings of the business. Y Intercept Hong Kong Ltd purchased a new position in shares of Thomson Reuters in the first quarter worth about $626,000. Cambridge Investment Research Advisors Inc. grew its stake in Thomson Reuters by 7.4% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 11,277 shares of the business services provider's stock valued at $1,948,000 after acquiring an additional 776 shares in the last quarter. Gulf International Bank UK Ltd grew its stake in Thomson Reuters by 2,723.3% during the first quarter. Gulf International Bank UK Ltd now owns 8,978 shares of the business services provider's stock valued at $1,551,000 after acquiring an additional 8,660 shares in the last quarter. Callan Capital LLC purchased a new position in Thomson Reuters during the first quarter valued at approximately $244,000. Finally, Ameriprise Financial Inc. grew its stake in Thomson Reuters by 0.9% during the fourth quarter. Ameriprise Financial Inc. now owns 33,663 shares of the business services provider's stock valued at $5,683,000 after acquiring an additional 313 shares in the last quarter. Hedge funds and other institutional investors own 17.31% of the company's stock.

Thomson Reuters Company Profile

Thomson Reuters Corporation engages in the provision of business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments.

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