Tronox (NYSE:TROX) Downgraded by Truist Financial to "Sell"

Key Points

• Truist downgraded Tronox to a "Sell" with an $8.00 price target, implying about a 21.2% downside from the prior close.
• Analysts are divided—four Buys, five Holds and three Sells—giving an average rating of "Hold" and a consensus target of $6.55.
• Tronox posted a miss last quarter with ($0.60) EPS vs. ($0.43) expected and a negative net margin (~16.2%), while insiders have been selling shares (CEO sold 101,600; 172,711 shares sold over 90 days).

Tronox (NYSE:TROX - Get Free Report) was downgraded by investment analysts at Truist Financial from a "hold" rating to a "sell" rating in a research note issued to investors on Tuesday. They currently have a $8.00 price objective on the stock. Truist Financial's target price suggests a potential downside of 21.20% from the company's previous close.

Several other research analysts have also recently weighed in on the stock. BMO Capital Markets reiterated a "market perform" rating on shares of Tronox in a research note on Friday, February 20th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $8.00 target price on shares of Tronox in a research note on Tuesday, January 27th. The Goldman Sachs Group lifted their target price on shares of Tronox from $5.50 to $7.50 and gave the company a "buy" rating in a research note on Thursday, January 29th. Weiss Ratings restated a "sell (d)" rating on shares of Tronox in a research note on Monday, April 20th. Finally, UBS Group lifted their target price on shares of Tronox from $7.50 to $9.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $6.55.

Tronox Trading Up 0.3%

Shares of Tronox stock opened at $10.15 on Tuesday. The company's fifty day simple moving average is $8.23 and its 200-day simple moving average is $5.94. The stock has a market capitalization of $1.61 billion, a PE ratio of -3.42 and a beta of 0.93. Tronox has a 1-year low of $2.86 and a 1-year high of $10.59. The company has a debt-to-equity ratio of 2.16, a current ratio of 2.46 and a quick ratio of 0.67.

Tronox (NYSE:TROX - Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The company reported ($0.60) earnings per share for the quarter, missing the consensus estimate of ($0.43) by ($0.17). The business had revenue of $730.00 million for the quarter, compared to analysts' expectations of $730.22 million. Tronox had a negative return on equity of 14.75% and a negative net margin of 16.22%.The company's revenue was up 8.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.03 EPS. As a group, equities analysts anticipate that Tronox will post -1.1 earnings per share for the current year.

Insider Transactions at Tronox

In related news, CEO John D. Romano sold 101,600 shares of the company's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $6.59, for a total transaction of $669,544.00. Following the transaction, the chief executive officer directly owned 1,473,740 shares in the company, valued at approximately $9,711,946.60. This represents a 6.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jean Francois Turgeon sold 18,563 shares of the company's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $6.60, for a total transaction of $122,515.80. Following the transaction, the director owned 754,009 shares in the company, valued at $4,976,459.40. The trade was a 2.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 172,711 shares of company stock worth $1,145,137. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tronox

Hedge funds have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. raised its holdings in shares of Tronox by 292.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 8,715 shares of the company's stock worth $36,000 after buying an additional 6,493 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Tronox in the third quarter worth $37,000. Headlands Technologies LLC purchased a new position in shares of Tronox in the second quarter worth $38,000. Westview Management dba Westview Investment Advisors purchased a new position in shares of Tronox in the fourth quarter worth $42,000. Finally, Aigen Investment Management LP purchased a new position in shares of Tronox in the fourth quarter worth $43,000. 73.36% of the stock is currently owned by institutional investors.

Tronox Company Profile

Tronox Holdings plc is a vertically integrated global producer of titanium dioxide (TiO₂) pigment and specialty materials. The company's operations encompass the full supply chain for TiO₂, from mining and processing titanium-bearing ores—such as ilmenite and rutile—to the production of high-purity pigment for use in paints, coatings, plastics, paper and other industrial applications. In addition to TiO₂, Tronox's product portfolio includes zircon, rare earth byproducts and other specialty minerals that serve a range of industrial markets.

Tronox operates a network of mines, processing facilities and pigment plants located across North America, Europe, the Middle East, Australia and South Africa.

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