Silverback Asset Management LLC Lowers Holdings in Scorpio Tankers Inc. $STNG

Silverback Asset Management LLC reduced its stake in shares of Scorpio Tankers Inc. (NYSE:STNG) by 66.7% in the 1st quarter, Holdings Channel reports. The fund owned 10,000 shares of the shipping company’s stock after selling 20,000 shares during the period. Silverback Asset Management LLC’s holdings in Scorpio Tankers were worth $747,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently bought and sold shares of the stock. Assetmark Inc. purchased a new stake in Scorpio Tankers in the 1st quarter worth approximately $28,000. Root Financial Partners LLC increased its holdings in shares of Scorpio Tankers by 193.9% during 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 holdings in shares of Scorpio Tankers by 1,645.2% during the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock valued at $27,000 after purchasing an additional 510 shares in the last quarter. Zions Bancorporation National Association UT acquired a new position in shares of Scorpio Tankers in the 4th quarter valued at $29,000. Finally, Quantbot Technologies LP acquired a new position in shares of Scorpio Tankers in the 3rd quarter valued at $36,000. 54.64% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on STNG shares. BTIG Research increased their price target on shares of Scorpio Tankers from $85.00 to $100.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Jefferies Financial Group assumed coverage on shares of Scorpio Tankers in a report on Friday, April 24th. They issued a “buy” rating and a $90.00 price objective for the company. Evercore reiterated an “outperform” rating and issued a $94.00 price objective on shares of Scorpio Tankers in a research report on Wednesday, July 22nd. 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. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Scorpio Tankers in a research report on Thursday, June 18th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $88.14.

Key Stories Impacting Scorpio Tankers

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 Trading Up 2.8%

Shares of STNG stock opened at $77.63 on Friday. Scorpio Tankers Inc. has a 1-year low of $43.78 and a 1-year high of $87.39. 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 debt-to-equity ratio of 0.16, a current ratio of 13.98 and a quick ratio of 13.87. The stock has a 50 day simple moving average of $76.89 and a 200-day simple moving average of $74.04.

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

Scorpio Tankers Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, August 17th. Scorpio Tankers’s dividend payout ratio (DPR) is presently 17.70%.

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.