Tronox (NYSE:TROX) Shares Gap Down - Time to Sell?

Key Points

• Tronox's share price gapped down from $4.06 to $3.87 before trading at $3.95, with analysts giving the stock a consensus rating of "Hold" and a target price of $5.07.
• The company reported a loss of ($0.28) EPS, missing estimates, with revenues also falling 10.9% year-over-year, leading to subsequent cuts in their annual dividend.
• Recent insider transactions included the purchase of 31,150 shares by Director Jean Francois Turgeon, reflecting confidence amidst stock performance uncertainty.

Tronox Holdings PLC (NYSE:TROX - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $4.06, but opened at $3.87. Tronox shares last traded at $3.95, with a volume of 729,824 shares changing hands.

Wall Street Analyst Weigh In

TROX has been the subject of a number of research reports. JPMorgan Chase & Co. reiterated a "neutral" rating on shares of Tronox in a research report on Friday. UBS Group lowered Tronox from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $8.00 to $3.60 in a research note on Monday, August 4th. The Goldman Sachs Group dropped their price target on Tronox from $7.00 to $4.50 and set a "buy" rating for the company in a research note on Thursday, August 7th. Morgan Stanley dropped their price target on Tronox from $8.00 to $4.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 6th. Finally, Alembic Global Advisors reissued an "overweight" rating and set a $6.00 price target on shares of Tronox in a research note on Monday, September 15th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $5.07.

Tronox Stock Performance

The company has a debt-to-equity ratio of 1.64, a current ratio of 2.10 and a quick ratio of 0.52. The business has a 50-day simple moving average of $4.22 and a 200-day simple moving average of $5.15. The firm has a market capitalization of $645.97 million, a PE ratio of -2.58 and a beta of 1.28.

Tronox (NYSE:TROX - Get Free Report) last issued its quarterly earnings data 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 company had revenue of $731.00 million for the quarter, compared to analysts' expectations of $802.03 million. During the same quarter last year, the company earned $0.07 earnings per share. The company's revenue for the quarter was down 10.9% on a year-over-year basis. Tronox has set its FY 2025 guidance at EPS. Equities research analysts expect that Tronox Holdings PLC will post 0.49 earnings per share for the current fiscal year.

Tronox Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 3rd. Stockholders of record on Monday, August 11th will be issued a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 4.9%. The ex-dividend date is Monday, August 11th. Tronox's dividend payout ratio is presently -12.66%.

Insider Transactions at Tronox

In other Tronox news, Director Jean Francois Turgeon purchased 31,150 shares of Tronox stock in a transaction dated Thursday, August 7th. The shares were purchased at an average cost of $3.21 per share, for a total transaction of $99,991.50. Following the completion of the acquisition, the director owned 772,572 shares in the company, valued at $2,479,956.12. This represents a 4.20% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Stephen J. Jones purchased 8,000 shares of Tronox stock in a transaction dated Thursday, August 7th. The stock was acquired at an average price of $3.19 per share, for a total transaction of $25,520.00. Following the completion of the acquisition, the director owned 51,000 shares of the company's stock, valued at approximately $162,690. This trade represents a 18.60% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders bought 184,750 shares of company stock valued at $579,714. Company insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On Tronox

Several hedge funds and other institutional investors have recently modified their holdings of the business. Primecap Management Co. CA grew its stake in Tronox by 192.2% in the second quarter. Primecap Management Co. CA now owns 4,252,502 shares of the company's stock worth $21,560,000 after purchasing an additional 2,797,002 shares in the last quarter. Van Lanschot Kempen Investment Management N.V. grew its stake in Tronox by 2.5% in the first quarter. Van Lanschot Kempen Investment Management N.V. now owns 2,868,837 shares of the company's stock worth $20,197,000 after purchasing an additional 69,726 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Tronox by 15.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 2,832,510 shares of the company's stock worth $19,941,000 after purchasing an additional 375,643 shares in the last quarter. Geode Capital Management LLC grew its stake in Tronox by 1.1% in the second quarter. Geode Capital Management LLC now owns 2,826,014 shares of the company's stock worth $14,329,000 after purchasing an additional 31,538 shares in the last quarter. Finally, Marshall Wace LLP grew its stake in Tronox by 97.4% in the second quarter. Marshall Wace LLP now owns 2,587,831 shares of the company's stock worth $13,120,000 after purchasing an additional 1,277,175 shares in the last quarter. 73.36% of the stock is currently owned by hedge funds and other institutional investors.

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.

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