Tronox (NYSE:TROX) Hits New 52-Week Low Following Weak Earnings

Key Points

Error: Response status code does not indicate success: 429 (Too Many Requests).

Tronox Holdings PLC (NYSE:TROX - Get Free Report) shares hit a new 52-week low on Thursday following a weaker than expected earnings announcement. The company traded as low as $3.75 and last traded at $3.64, with a volume of 4654234 shares. The stock had previously closed at $5.14.

The company reported ($0.28) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.24). The firm had revenue of $731.00 million for the quarter, compared to the consensus estimate of $802.03 million. Tronox had a negative return on equity of 4.74% and a negative net margin of 8.48%. The company's revenue was down 10.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.07 EPS.

Tronox Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 2nd. Shareholders of record on Monday, May 19th were paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 14.7%. The ex-dividend date of this dividend was Monday, May 19th. Tronox's payout ratio is presently -31.65%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Truist Financial decreased their target price on Tronox from $14.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, April 14th. JPMorgan Chase & Co. raised Tronox from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $5.00 to $7.00 in a research note on Friday, May 30th. Morgan Stanley decreased their target price on Tronox from $12.00 to $8.00 and set an "equal weight" rating for the company in a research note on Monday, May 5th. UBS Group reduced their price objective on Tronox from $8.50 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, July 9th. Finally, Mizuho reduced their price objective on Tronox from $6.00 to $5.00 and set a "neutral" rating for the company in a research report on Tuesday, July 15th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $7.06.

Insiders Place Their Bets

In related news, CEO John D. Romano bought 100,000 shares of the business's stock in a transaction on Friday, August 1st. The shares were purchased at an average cost of $3.09 per share, with a total value of $309,000.00. Following the acquisition, the chief executive officer owned 1,333,485 shares of the company's stock, valued at $4,120,468.65. This represents a 8.11% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Jeffrey N. Neuman bought 10,266 shares of the business's stock in a transaction on Wednesday, May 7th. The shares were bought at an average cost of $4.89 per share, for a total transaction of $50,200.74. Following the completion of the acquisition, the senior vice president directly owned 10,266 shares in the company, valued at approximately $50,200.74. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 122,866 shares of company stock worth $397,883 in the last 90 days. Company insiders own 1.70% of the company's stock.

Institutional Trading of Tronox

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC bought a new stake in Tronox in the 1st quarter valued at about $102,000. Deutsche Bank AG increased its holdings in Tronox by 52.8% during the 4th quarter. Deutsche Bank AG now owns 101,764 shares of the company's stock worth $1,025,000 after purchasing an additional 35,146 shares in the last quarter. Sei Investments Co. increased its holdings in Tronox by 39.9% during the 4th quarter. Sei Investments Co. now owns 284,353 shares of the company's stock worth $2,863,000 after purchasing an additional 81,078 shares in the last quarter. Raymond James Financial Inc. bought a new stake in Tronox during the 4th quarter worth approximately $701,000. Finally, Wealth Enhancement Advisory Services LLC increased its holdings in Tronox by 36.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 32,936 shares of the company's stock worth $232,000 after purchasing an additional 8,777 shares in the last quarter. 73.36% of the stock is owned by institutional investors.

Tronox Price Performance

The company has a current ratio of 2.28, a quick ratio of 0.61 and a debt-to-equity ratio of 1.61. The business has a fifty day simple moving average of $5.43 and a 200 day simple moving average of $6.55. The stock has a market capitalization of $537.18 million, a P/E ratio of -2.15 and a beta of 1.35.

About Tronox

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.