As of Wednesday, Scorpio Tankers Inc.’s (NYSE:STNG) stock closed at $50.80, down from $51.87 the previous day. While Scorpio Tankers Inc. has underperformed by -2.06%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, STNG rose by 243.48%, with highs and lows ranging from $54.24 to $11.02, whereas the simple moving average jumped by 50.22% in the last 200 days.
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On October 11, 2022, Deutsche Bank Upgraded Scorpio Tankers Inc. (NYSE: STNG) to Hold. A report published by Jefferies on July 21, 2022, Initiated its previous ‘Buy’ rating for STNG. Jefferies also rated STNG shares as ‘Buy’, setting a target price of $27 on the company’s shares in an initiating report dated April 27, 2022. BofA Securities March 03, 2022d the rating to Buy on March 03, 2022, and set its price target from $15.50 to $23. BofA Securities February 10, 2022d its ‘Underperform’ rating to ‘Neutral’ for STNG, as published in its report on February 10, 2022. Deutsche Bank also rated the stock as ‘Sell’.
Analysis of Scorpio Tankers Inc. (STNG)
Investors in Scorpio Tankers Inc. will get a return regardless of how the company performs over the next quarter since the company’s dividend stands at $0.40 per share. Further, the quarter-over-quarter increase in sales is 310.70%, showing a positive trend in the upcoming months.
One of the most important indicators of Scorpio Tankers Inc.’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 17.10% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.50, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and STNG is recording 1.18M average volume. On a monthly basis, the volatility of the stock is set at 5.21%, whereas on a weekly basis, it is put at 5.25%, with a gain of 5.02% over the past seven days. Furthermore, long-term investors anticipate a median target price of $61.32, showing growth from the present price of $50.80, which can serve as yet another indication of whether STNG is worth investing in or should be passed over.
How Do You Analyze Scorpio Tankers Inc. Shares?
The Oil & Gas Midstream market is dominated by Scorpio Tankers Inc. (STNG) based in the Monaco. When comparing Scorpio Tankers Inc. shares with other companies under Energy, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 10.48, there is a growth in quarterly earnings of 416.70%.
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 3.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 61.40% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in STNG shares?
The recent increase in stakes in STNG appears to be a result of several institutional investors and hedge funds increasing their positions. Dimensional Fund Advisors LP’s position in STNG has increased by 10.91% in the first quarter. The company now owns 3,109,243 shares of the stock, with a value of $149.06 million, following the purchase of 305,881 additional shares during the last quarter. BlackRock Fund Advisors made another decreased to its shares in STNG during the first quarter, downing its stake by -0.64%. During the last quarter, the company picked up -15,088 additional shares for a total stake of worth $112.52 million, bringing number of shares owned by the company to 2,347,030.
During the first quarter, Fidelity Management & Research Co added a 387,004 position in STNG. Magallanes Value Investors SA SGI sold an additional -0.21 million shares in the last quarter, decreasing its holdings by -13.10%, now holding 1.4 million shares worth $67.14 million. At the end of the first quarter, Goldman Sachs Asset Management LP increased its STNG holdings by 307.81% and now holds 1.01 million STNG shares valued at $48.29 million with the added 0.76 million shares during the period. STNG shares are owned by institutional investors to the tune of 61.40% at present.