Zacks Research Downgrades Scorpio Tankers (NYSE:STNG) to Hold

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

Several other equities research analysts also recently weighed in on STNG. Morgan Stanley set a $82.00 target price on shares of Scorpio Tankers and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Evercore restated an “outperform” rating and issued a $94.00 price target on shares of Scorpio Tankers in a research report on Wednesday, July 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Scorpio Tankers in a research note on Thursday, June 18th. Jefferies Financial Group began coverage on Scorpio Tankers in a research report on Friday, April 24th. They set a “buy” rating and a $90.00 price objective for the company. Finally, Wall Street Zen downgraded Scorpio Tankers from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, July 14th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $88.14.

Scorpio Tankers Stock Up 2.8%

STNG stock opened at $77.63 on Thursday. The company has a market cap of $3.91 billion, a price-to-earnings ratio of 4.85 and a beta of -0.24. The company has a fifty day moving average price of $76.89 and a 200 day moving average price of $74.04. The company has a debt-to-equity ratio of 0.16, a current ratio of 13.98 and a quick ratio of 13.87. Scorpio Tankers has a 12 month low of $43.78 and a 12 month high of $87.39.

Scorpio Tankers (NYSE:STNG) last issued its quarterly earnings data on Thursday, July 30th. The shipping company reported $4.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.56 by $0.12. The company had revenue of $408.73 million for 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%. Scorpio Tankers’s revenue for the quarter was up 77.5% on a year-over-year basis. During the same period last year, the firm posted $1.41 EPS. Sell-side analysts expect that Scorpio Tankers will post 11 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Assetmark Inc. acquired a new stake in Scorpio Tankers in the first quarter valued at about $28,000. Root Financial Partners LLC boosted its holdings in Scorpio Tankers by 193.9% in the 1st quarter. Root Financial Partners LLC now owns 526 shares of the shipping company’s stock valued at $39,000 after purchasing an additional 347 shares in the last quarter. Global Retirement Partners LLC increased 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 purchasing an additional 510 shares during the period. Zions Bancorporation National Association UT acquired a new position in Scorpio Tankers during the 4th quarter worth approximately $29,000. Finally, Quantbot Technologies LP purchased a new position in shares of Scorpio Tankers during the 3rd quarter worth approximately $36,000. 54.64% of the stock is owned by hedge funds and other institutional investors.

Scorpio Tankers News Roundup

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.

About Scorpio Tankers

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.