Tronox (NYSE:TROX) Shares Down 6.8% - Here's Why

Key Points

• Tronox shares fell 6.8% to approximately $6.48 in Friday trading, below both its 50-day and 200-day moving averages. Trading volume was about 90% below the average session volume.
• The company reported a quarterly loss of $0.51 per share, missing analysts’ estimate of a $0.38 loss, despite revenue of $868 million that exceeded expectations and increased 18.7% year over year.
• Analyst sentiment remains cautious, with a consensus rating of “Reduce” and an average price target of $7.25. Tronox also declared a quarterly dividend of $0.05 per share, implying a 3.0% annualized yield.

Tronox Holdings PLC (NYSE:TROX - Get Free Report) fell 6.8% during trading on Friday . The stock traded as low as $6.53 and last traded at $6.4760. Approximately 319,599 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 3,347,388 shares. The stock had previously closed at $6.95.

Analyst Upgrades and Downgrades

TROX has been the topic of a number of research reports. Truist Financial raised shares of Tronox from a "sell" rating to a "hold" rating and set a $7.00 target price on the stock in a research note on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $10.00 price objective on Tronox in a research report on Wednesday, May 20th. UBS Group boosted their price objective on Tronox from $7.50 to $9.00 and gave the stock a "neutral" rating in a research note on Thursday, April 9th. Weiss Ratings lowered Tronox from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, May 11th. Finally, Wall Street Zen lowered Tronox from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $7.25.

Tronox Stock Performance

The company has a debt-to-equity ratio of 2.36, a current ratio of 2.42 and a quick ratio of 0.66. The stock has a market capitalization of $1.06 billion, a P/E ratio of -1.91 and a beta of 0.82. The company has a fifty day moving average of $6.72 and a two-hundred day moving average of $7.56.

Tronox (NYSE:TROX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.38) by ($0.13). Tronox had a negative net margin of 17.96% and a negative return on equity of 23.24%. The firm had revenue of $868.00 million for the quarter, compared to analyst estimates of $832.59 million. During the same quarter in the previous year, the company earned ($0.28) EPS. The company's quarterly revenue was up 18.7% compared to the same quarter last year. On average, equities analysts anticipate that Tronox Holdings PLC will post -1.27 EPS for the current year.

Tronox Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Monday, August 10th will be issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Monday, August 10th. Tronox's payout ratio is -6.85%.

Hedge Funds Weigh In On Tronox

Large investors have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. increased its stake in Tronox by 27.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 5,637,371 shares of the company's stock valued at $23,508,000 after purchasing an additional 1,205,249 shares during the last quarter. Primecap Management Co. CA lifted its position in shares of Tronox by 16.5% in the 4th quarter. Primecap Management Co. CA now owns 5,478,402 shares of the company's stock worth $22,845,000 after buying an additional 773,900 shares during the last quarter. Van Lanschot Kempen Investment Management N.V. lifted its position in shares of Tronox by 123.0% in the 4th quarter. Van Lanschot Kempen Investment Management N.V. now owns 4,347,134 shares of the company's stock worth $18,128,000 after buying an additional 2,398,038 shares during the last quarter. Lightrock Netherlands B.V. boosted its holdings in shares of Tronox by 66.8% in the 4th quarter. Lightrock Netherlands B.V. now owns 3,051,286 shares of the company's stock valued at $12,724,000 after buying an additional 1,222,115 shares during the period. Finally, State Street Corp boosted its holdings in shares of Tronox by 4.8% in the 4th quarter. State Street Corp now owns 3,039,337 shares of the company's stock valued at $12,819,000 after buying an additional 139,960 shares during the period. 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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