Scorpio Tankers (NYSE:STNG) Lowered to Hold Rating by Zacks Research

Scorpio Tankers (NYSE:STNG) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday,Zacks.com reports.

STNG has been the subject of a number of other reports. Morgan Stanley set a $82.00 price objective on shares of Scorpio Tankers and gave the stock an “equal weight” rating in a report on Thursday, July 9th. BTIG Research raised their target price on Scorpio Tankers from $85.00 to $100.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Bank of America cut Scorpio Tankers from a “buy” rating to an “underperform” rating and reduced their price target for the stock from $100.00 to $78.00 in a research report on Tuesday, June 30th. Jefferies Financial Group began coverage on Scorpio Tankers in a research note on Friday, April 24th. They set a “buy” rating and a $90.00 price target for the company. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Scorpio Tankers in a report on Thursday, June 18th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Scorpio Tankers presently has a consensus rating of “Hold” and a consensus target price of $88.14.

Scorpio Tankers Trading Up 2.8%

NYSE:STNG opened at $77.63 on Thursday. The company has a market capitalization of $3.91 billion, a P/E ratio of 4.85 and a beta of -0.24. The stock’s 50 day moving average price is $76.89 and its 200 day moving average price is $74.04. The company has a debt-to-equity ratio of 0.16, a quick ratio of 13.87 and a current ratio of 13.98. Scorpio Tankers has a 52 week low of $43.78 and a 52 week high of $87.39.

Scorpio Tankers (NYSE:STNG) last posted its earnings results on Thursday, July 30th. The shipping company reported $4.68 EPS for the quarter, topping the consensus estimate of $4.56 by $0.12. The company had revenue of $408.73 million during the quarter, compared to the consensus estimate of $398.25 million. Scorpio Tankers had a net margin of 67.16% and a return on equity of 16.95%. The company’s revenue for the quarter was up 77.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.41 earnings per share. On average, research analysts forecast that Scorpio Tankers will post 11 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of STNG. Global Retirement Partners LLC lifted its position in Scorpio Tankers by 1,645.2% during the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock worth $27,000 after acquiring an additional 510 shares during the last quarter. Assetmark Inc. acquired a new stake in shares of Scorpio Tankers in the first quarter valued at about $28,000. Zions Bancorporation National Association UT bought a new position in shares of Scorpio Tankers in the fourth quarter worth about $29,000. Smartleaf Asset Management LLC increased its stake in shares of Scorpio Tankers by 154.3% in the fourth quarter. Smartleaf Asset Management LLC now owns 646 shares of the shipping company’s stock worth $33,000 after purchasing an additional 392 shares during the period. Finally, Quantbot Technologies LP bought a new position in shares of Scorpio Tankers in the third quarter worth about $36,000. Institutional investors own 54.64% of the company’s stock.

Key Scorpio Tankers News

Here are the key news stories impacting Scorpio Tankers this week:

• Positive Sentiment: Adjusted earnings and revenue topped expectations. Q2 adjusted diluted EPS was $4.68, above the $4.51 consensus estimate, while revenue reached $408.7 million versus expectations of $398.3 million. Adjusted net income rose to $243.7 million from $67.8 million a year earlier. Scorpio Tankers Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Operating performance improved sharply. Average daily time-charter-equivalent revenue more than doubled to $52,661 from $25,569, lifting adjusted EBITDA to $300.5 million from $144.5 million. Management attributed the stronger market to longer voyages and trade disruptions related to the Middle East conflict. Scorpio Tankers Q2 Results and Dividend
• Positive Sentiment: Liquidity and capital returns remain attractive. Scorpio Tankers reported approximately $2.0 billion in unrestricted cash, reduced gross debt through vessel sales and repayments, repurchased shares, and declared a $0.45 quarterly dividend payable August 31 to shareholders of record August 17.
• Positive Sentiment: Forward revenue visibility is improving. The company secured three-year time charters for three MR tankers at $23,900-$25,000 per day and continues investing in scrubber-fitted LR2, MR and VLCC newbuildings.
• Neutral Sentiment: Reported net income was boosted by nonrecurring items. Q2 net income of $387.5 million included a $154.1 million vessel-sale gain and a $13.8 million fair-value gain, making adjusted results more relevant for assessing recurring profitability.
• Negative Sentiment: Market and dilution risks remain. Spot rates declined from record highs late in the quarter, while the $605 million convertible-note issuance may dilute shareholders if converted. Higher general and administrative and vessel operating costs also offset part of the benefit from stronger freight rates.

Scorpio Tankers Company Profile

Scorpio Tankers Inc (NYSE: STNG) is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.