Tronox (NYSE:TROX) Given Underperform Rating at Mizuho

Key Points

• Mizuho has reissued an "underperform" rating on Tronox (NYSE:TROX) with a target price of $4.00, indicating a potential downside of 20% from its current price.
• Tronox reported a loss of ($0.28) EPS for the last quarter, significantly missing analyst estimates and showing a year-over-year revenue decline of 10.9%.
• Recent insider trading included significant stock acquisitions by SVP Jeffrey A. Engle and CEO John D. Romano, suggesting confidence in the company's future despite its challenges.

Tronox (NYSE:TROX - Get Free Report)'s stock had its "underperform" rating reissued by equities research analysts at Mizuho in a report issued on Friday, MarketBeat.com reports. They currently have a $4.00 target price on the stock. Mizuho's price target would suggest a potential downside of 20.00% from the company's current price.

A number of other research analysts have also recently issued reports on TROX. The Goldman Sachs Group decreased their target price on Tronox from $7.00 to $4.50 and set a "buy" rating on the stock in a research report on Thursday, August 7th. Barclays decreased their target price on Tronox from $13.00 to $8.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 28th. BMO Capital Markets cut Tronox from a "market perform" rating to an "underperform" rating and decreased their target price for the company from $7.00 to $3.00 in a research report on Monday, June 30th. Alembic Global Advisors reiterated an "overweight" rating and issued a $5.00 target price on shares of Tronox in a research report on Monday, August 11th. Finally, Truist Financial set a $5.00 target price on Tronox in a research report on Monday, August 4th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Tronox currently has a consensus rating of "Hold" and a consensus target price of $4.90.

Tronox Stock Up 5.0%

Shares of NYSE TROX opened at $5.00 on Friday. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.52 and a current ratio of 2.10. Tronox has a 52 week low of $2.95 and a 52 week high of $15.07. The stock has a market capitalization of $792.60 million, a P/E ratio of -3.16 and a beta of 1.32. The stock's fifty day moving average is $4.54 and its 200 day moving average is $5.44.

Tronox (NYSE:TROX - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.24). Tronox had a negative net margin of 8.48% and a negative return on equity of 4.83%. The business had revenue of $731.00 million during the quarter, compared to the consensus estimate of $802.03 million. During the same quarter in the prior year, the firm earned $0.07 EPS. The business's revenue was down 10.9% on a year-over-year basis. Tronox has set its FY 2025 guidance at EPS. Sell-side analysts forecast that Tronox will post 0.49 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Jeffrey A. Engle acquired 12,600 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were bought at an average cost of $3.07 per share, with a total value of $38,682.00. Following the completion of the purchase, the senior vice president directly owned 146,926 shares in the company, valued at $451,062.82. The trade was a 9.38% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CEO John D. Romano bought 100,000 shares of Tronox stock in a transaction that occurred on Friday, August 1st. The stock was bought at an average price of $3.09 per share, for a total transaction of $309,000.00. Following the completion of the acquisition, the chief executive officer directly owned 1,333,485 shares of the company's stock, valued at $4,120,468.65. The trade was a 8.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 184,750 shares of company stock valued at $579,714. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of Tronox

Several institutional investors have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC boosted its holdings in Tronox by 24.7% in the second quarter. Squarepoint Ops LLC now owns 374,699 shares of the company's stock valued at $1,900,000 after acquiring an additional 74,328 shares during the last quarter. Tyler Stone Wealth Management bought a new stake in Tronox in the second quarter valued at approximately $185,000. Nomura Holdings Inc. bought a new stake in Tronox in the second quarter valued at approximately $514,000. Headlands Technologies LLC bought a new stake in Tronox in the second quarter valued at approximately $38,000. Finally, Captrust Financial Advisors boosted its holdings in Tronox by 8.2% in the second quarter. Captrust Financial Advisors now owns 113,854 shares of the company's stock valued at $577,000 after acquiring an additional 8,583 shares during the last quarter. 73.36% of the stock is currently owned by institutional investors.

Tronox Company Profile

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products.

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