Scorpio Tankers Put Options Volume Jumps 41% to 2,012 Contracts

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Investors bought 2,012 put options on Scorpio Tankers on Friday, up 41% from the 1,428‐contract average, signaling increased bearish hedging. The company's 50-day and 200-day simple moving averages are $56.16 and $52.63, respectively, with analysts setting an average price target of $69.20.

1. Surge in Put Option Activity

On Friday, investors purchased 2,012 put contracts on Scorpio Tankers, marking a 41% increase over the firm’s typical daily volume of 1,428 put contracts. This unusually large flow suggests heightened bearish sentiment or hedging activity among options traders focused on the company’s shares.

2. Key Financial Metrics and Recent Earnings

Scorpio Tankers reports a debt-to-equity ratio of 0.25, a quick ratio of 4.75 and a current ratio of 4.81, underscoring its robust liquidity position. The company’s trailing price-to-earnings ratio stands at 9.28 and its beta at –0.27. In its latest quarter, Scorpio Tankers delivered earnings per share of 1.49, exceeding consensus by 0.10, on revenue of 232.92 million, which topped analysts’ forecasts by 4.83 million. Year-over-year revenue declined 9.9%, while EPS fell from 1.75 in the prior equivalent period. Sell-side analysts project full-year EPS of 5.29.

3. Dividend Hike and Yield Profile

The board increased the quarterly dividend by 5%, raising it from 0.40 to 0.42 per share. On an annualized basis, this equates to 1.68 per share, yielding 3.1%. Scorpio Tankers’ dividend payout ratio now stands at 28.43%, reflecting conservative cash return policy consistent with its balance sheet strength.

4. Institutional Stakes and Analyst Consensus

Major institutions have been active in the past two quarters: Encompass Capital Advisors initiated a 30.9 million position; Merewether Investment Management added 38.5 million; Assenagon Asset Management boosted its stake by 136.4% to 43.4 million; Arrowstreet Capital increased its holding by 68.3% to 45.2 million; and AQR Capital Management lifted its position by 91.9% to 25.1 million. Collectively, institutions own 54.64% of outstanding shares. Among analysts, one holds a Strong Buy rating, three maintain Buy ratings, three recommend Hold and one issues a Sell. The consensus opinion is Moderate Buy.

Sources

DG