Something Big Is Happening With Scorpio Tankers Inc. (STNG)

Investors will get their next glimpse of STNG’s Q4 earnings on February 14. Analysts are forecasting revenue to climb 8.1 percent to $157M in the next fiscal quarter, while earnings are seen soaring by nearly -57.86 percent to -$0.59 per share. History has shown that shares in Scorpio Tankers Inc. have gone up on 17 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$2.1 per share, worse than the -$1.96, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $119M, in line with the $119M analysts expected. Earnings are estimated to increase by -375.4 percent this year, 95 percent next year and continue to increase by 0 percent annually for the next 5 years.

Scorpio Tankers Inc. (STNG) will probably climb 78.92 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40 price as 12-month high target. This represents a whopping 124.22 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $30, which represents a return potential of 68.16 percent when compared to the closing price of the stock of $17.84 on Wednesday, February 13. The lowest price target for the stock is $22 — slightly more than 23.32 percent from STNG’s current share price.

The stock is currently hovering around the first support level of $17.34. Below this, the next support is placed in the zone of $16.85. Till the time, the STNG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.4 on daily chart, which may remain a cause for concern. If the price breaks below $16.85 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $18.12 mark may result into a pull-back move towards $18.41 level.

On 13th of February, Scorpio Tankers Inc. (NYSE:STNG) shares ended higher after a volatile session. The shares accumulated 0.84 points or 4.94 percent at $17.84 with a light trade volume of 1.359 million shares. After opening the session at $17.24, the shares went as high as $17.91 and as low as $17.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $938 million and now has 52.57 million shares outstanding. Scorpio Tankers Inc. (STNG) stock has lost -8.04 percent of market value in 21 trading days.

STNG stock has a trailing 3-year beta of 1, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$7.03 a share in the trailing twelve months. The stock’s value has surged 1.36 percent year to date (YTD) against a decline of -24.41 percent in 12 month’s time. The company’s shares still trade -45.11 percent away from its 1-year high of $32.50 and 20.95 percent up from 52-week low of $14.75. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Scorpio Tankers Inc. (STNG) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry STNG operates in has an average P/E of 52.79. Its P/E ratio went as low as 7.36X and as high as 102.79 over the 5-year span. Further, it is sporting a 1.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.42. 38 percent is the gross profit margin for Scorpio Tankers Inc. and operating margin sits at -3.7 percent. Along with this, the net profit margin is -37.8 percent.

Let’s take a look at some insider activity at Scorpio Tankers Inc. (NYSE:STNG) and see the pattern.