Do Scorpio Tankers Inc. (NYSE: STNG) Fit In A Value Investing Philosophy?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Scorpio Tankers Inc. (NYSE:STNG). The institutional investor has increased its shareholding in the Energy company by 8.88% to 2.18 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 3.72% valued currently at $28.87 million. In addition, Ninety One UK Ltd. raised its holdings by 1.63 million to 1.63 million shares. And Fidelity Management & Research Co.. has lifted its position by 7,389.16% or 1.35 million shares – to 1.37 million shares.

    With over 1.13 million Scorpio Tankers Inc. (STNG) shares trading Monday and a closing price of $11.84 on the day, the dollar volume was approximately $13.37 million. The shares have shown a negative weekly performance of -3.90% and its price on 08/31/20 gained nearly 0.94%. Currently, there are 54.83M common shares owned by the public and among those 45.39M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for STNG have a consensus price objective of $23.98. The analysts have set the share’s price value over the next 12 months at a high of $45.00 and a low of $13.80 should the stock experience a downside. Incidentally, analysts’ outlook for the Scorpio Tankers Inc. stock is 2.10 for the next 12 months. But an upside of 73.69% will see the stock hit the forecast high price target while mean target price for the stock is $22.00.

    The top 3 mutual fund holders in Scorpio Tankers Inc. are iShares Russell 2000 ETF, Evermore Global Value fund, and Magallanes European Equity, FI. iShares Russell 2000 ETF owns 1.06 million shares of the company’s stock, all valued at over $13.96 million. The company sold 49266.0 shares recently to bring their total holdings to about 1.80% of the shares outstanding. Evermore Global Value fund bought 19850.0 shares to see its total holdings expand to 0.89 million shares valued at over $11.7 million and representing 1.51% of the shares outstanding. Magallanes European Equity, FI sold 5036.0 shares to bring its total holdings to over 0.71 million shares at a value of $9.4 million. Magallanes European Equity, FI now owns shares totaling to 1.21% of the shares outstanding.

    Shares of Scorpio Tankers Inc. (NYSE: STNG) opened at $11.76, up $0.03 from a prior closing price of $11.73. However, the script later closed the day at $11.84, up 0.94%. The company’s stock has a 5-day price change of -3.90% and -28.89% over the past three months. STNG shares are trading -69.90% year to date (YTD), with the 12-month market performance down to -54.96% lower. It has a 12-month low price of $11.09 and touched a high of $40.45 over the same period. Currently, 1.13 million shares have been traded, compared to an average intraday trading volume of 1.87 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -5.62%, -8.99%, and -45.14% respectively.

    Institutional ownership of Scorpio Tankers Inc. (NYSE: STNG) shares accounts for 53.70% of the company’s 54.83M shares outstanding. Mutual fund holders own 22.28%, while other institutional holders and individual stakeholders account for 30.30% and — respectively.

    It has a market capitalization of $674.88M and a beta (3y monthly) value of 0.87. The earnings-per-share (ttm) stands at -$0.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.49% over the week and 5.19% over the month.

    Analysts forecast that Scorpio Tankers Inc. (STNG) will achieve an EPS of -$0.23 for the current quarter, $0.32 for the next quarter and $2.5 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.8 while analysts give the company a high EPS estimate of $0.07. Comparatively, EPS for the current quarter was -$0.92 a year ago. Earnings per share for the fiscal year are expected to increase by 82.20%, and -28.74% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Scorpio Tankers Inc. (STNG) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 2 of the 12 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the STNG, a number of firms have released research notes about the stock. Stifel stated their Buy rating for the stock in a research note on March 09, 2020, with the firm’s price target at $30. DNB Markets coverage for the Scorpio Tankers Inc. (STNG) stock in a research note released on March 09, 2020 offered a Hold rating with a price target of $30. Stifel was of a view on October 17, 2019 that the stock is Hold, while JP Morgan gave the stock Overweight rating on May 16, 2019, issuing a price target of $29- $34. B. Riley FBR on their part issued Buy rating on March 04, 2019.


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