Scorpio Tankers (NYSE:STNG) Sets New 12-Month High After Strong Earnings

Shares of Scorpio Tankers Inc. (NYSE:STNG) hit a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $92.75 and last traded at $88.6010, with a volume of 898,827 shares traded. The stock had previously closed at $85.33.

The shipping company reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.06 by $0.43. Scorpio Tankers had a net margin of 77.07% and a return on equity of 17.62%. The company had revenue of $266.47 million during the quarter, compared to analyst estimates of $243.98 million. During the same quarter last year, the business posted $1.49 earnings per share. The company’s revenue was up 10.4% on a year-over-year basis.

Scorpio Tankers Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 13th will be issued a $0.75 dividend. This is a positive change from Scorpio Tankers’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, November 13th. This represents a $3.00 annualized dividend and a dividend yield of 3.2%. Scorpio Tankers’s dividend payout ratio (DPR) is presently 9.53%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on STNG shares. Needham & Company LLC set a $130.00 price target on Scorpio Tankers in a research note on Thursday. Evercore reissued an “outperform” rating and set a $97.00 target price on shares of Scorpio Tankers in a research note on Tuesday. Morgan Stanley upped their target price on Scorpio Tankers from $76.00 to $90.00 and gave the company an “equal weight” rating in a report on Tuesday, October 13th. Truist Financial set a $130.00 target price on Scorpio Tankers in a research report on Thursday. Finally, B. Riley Financial reissued a “buy” rating and set a $130.00 target price (up from $120.00) on shares of Scorpio Tankers in a research report on Thursday. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Scorpio Tankers presently has a consensus rating of “Hold” and an average price target of $105.33.

Insider Buying and Selling

In related news, President Robert L. Bugbee sold 231,799 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $86.19, for a total value of $19,978,755.81. Following the transaction, the president owned 665,288 shares of the company’s stock, valued at $57,341,172.72. This represents a 25.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Christopher Avella sold 56,500 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $86.57, for a total value of $4,891,205.00. Following the sale, the chief financial officer owned 178,834 shares of the company’s stock, valued at $15,481,659.38. This represents a 24.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 420,133 shares of company stock valued at $36,611,311. Corporate insiders own 7.34% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Gallacher Capital Management LLC bought a new position in shares of Scorpio Tankers during the 3rd quarter valued at approximately $422,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Scorpio Tankers during the third quarter valued at about $1,038,000. State of Wyoming raised its stake in Scorpio Tankers by 7.4% in the third quarter. State of Wyoming now owns 7,474 shares of the shipping company’s stock valued at $626,000 after buying an additional 515 shares during the last quarter. Hanseatic Management Services Inc. purchased a new position in shares of Scorpio Tankers in the third quarter worth about $272,000. Finally, Signaturefd LLC lifted its holdings in Scorpio Tankers by 36.2% in the third quarter. Signaturefd LLC now owns 2,395 shares of the shipping company’s stock valued at $200,000 after acquiring an additional 636 shares during the period. Institutional investors own 54.64% of the company’s stock.

Scorpio Tankers Stock Down 0.3%

The stock has a market cap of $4.78 billion, a PE ratio of 5.02 and a beta of -0.17. The business has a 50-day moving average price of $83.41 and a 200-day moving average price of $76.62. The company has a current ratio of 6.93, a quick ratio of 6.89 and a debt-to-equity ratio of 0.14.

About Scorpio Tankers

Scorpio Tankers Inc is a marine transportation company that owns, operates and manages a fleet of product tankers. The company primarily transports refined petroleum products, including gasoline, diesel, jet fuel and heating oil, as well as petrochemical feedstocks and other liquid products.

Its fleet has historically included medium-range, handymax and long-range product tankers, allowing Scorpio Tankers to serve both regional and long-haul trade routes. The company’s vessels transport cargoes between major refining, storage and consumption centers across international markets, supporting energy companies, commodity traders and other commercial customers.

Scorpio Tankers was established in 2009 and is incorporated in the Marshall Islands, with corporate operations based in Monaco.