Thomson Reuters (NYSE:TRI) Sees Large Volume Increase on Strong Earnings

Shares of Thomson Reuters Co. (NYSE:TRI) (TSE:TRI) saw unusually-high trading volume on Tuesday following a better than expected earnings announcement. Approximately 64,182 shares traded hands during mid-day trading, a decline of 87% from the previous session’s volume of 477,280 shares.The stock last traded at $97.62 and had previously closed at $93.50.

The business services provider reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.16. The business had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.56 billion. Thomson Reuters had a return on equity of 8.89% and a net margin of 31.66%. The business’s revenue for the quarter was up 3.9% compared to the same quarter last year. During the same period last year, the company earned $0.48 earnings per share.

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 17th. Stockholders of record on Friday, March 5th were paid a dividend of $0.405 per share. The ex-dividend date of this dividend was Thursday, March 4th. This represents a $1.62 annualized dividend and a dividend yield of 1.67%. This is a positive change from Thomson Reuters’s previous quarterly dividend of $0.38. Thomson Reuters’s dividend payout ratio (DPR) is currently 88.37%.

Several equities analysts have recently commented on the company. Canaccord Genuity upgraded Thomson Reuters from a “hold” rating to a “buy” rating in a research note on Wednesday, February 24th. National Bank Financial upgraded Thomson Reuters from a “sector perform” rating to an “outperform” rating and raised their price target for the company from $111.00 to $115.00 in a research note on Friday, January 15th. Royal Bank of Canada lifted their target price on Thomson Reuters from $98.00 to $100.00 and gave the company an “outperform” rating in a research note on Monday. CIBC lowered Thomson Reuters from an “outperform” rating to a “neutral” rating in a research note on Tuesday. Finally, BMO Capital Markets lifted their target price on Thomson Reuters from $116.00 to $127.00 and gave the company an “outperform” rating in a research note on Wednesday, February 24th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $96.18.

Several hedge funds have recently modified their holdings of TRI. Norges Bank purchased a new stake in shares of Thomson Reuters during the fourth quarter worth about $143,020,000. TPG Group Holdings SBS Advisors Inc. grew its stake in shares of Thomson Reuters by 88.4% during the fourth quarter. TPG Group Holdings SBS Advisors Inc. now owns 3,049,800 shares of the business services provider’s stock worth $249,748,000 after acquiring an additional 1,430,600 shares during the last quarter. Mackenzie Financial Corp grew its stake in shares of Thomson Reuters by 30.3% during the fourth quarter. Mackenzie Financial Corp now owns 4,849,814 shares of the business services provider’s stock worth $395,719,000 after acquiring an additional 1,126,585 shares during the last quarter. Findlay Park Partners LLP lifted its holdings in shares of Thomson Reuters by 338.3% during the fourth quarter. Findlay Park Partners LLP now owns 1,000,000 shares of the business services provider’s stock worth $81,890,000 after purchasing an additional 771,842 shares during the period. Finally, AGF Investments Inc. lifted its holdings in shares of Thomson Reuters by 142.7% during the fourth quarter. AGF Investments Inc. now owns 801,812 shares of the business services provider’s stock worth $65,624,000 after purchasing an additional 471,407 shares during the period. Institutional investors and hedge funds own 20.49% of the company’s stock.

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.51 and a quick ratio of 1.51. The stock has a market cap of $47.86 billion, a price-to-earnings ratio of 25.72, a P/E/G ratio of 3.15 and a beta of 0.47. The stock has a fifty day moving average of $90.33 and a 200 day moving average of $84.28.

About Thomson Reuters (NYSE:TRI)

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments.

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