Tesoro Corp. (TSO) Stock Rating Upgraded by Zacks Investment Research
Tesoro Corp. (NYSE:TSO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Tesoro is one the largest independent oil refiners in the U.S. A major advantage for the company is the scale and diversification benefits offered by its portfolio of 7 refineries. We also like TSO's solid long-term competitive position on the supply constrained California market. We view Tesoro's recent acquisition of biorenewables producer Virent as positive, as it will help the downstream operator to develop cleaner fuels – by commercializing the latter's renewable energy technology – and reduce compliance costs. However, we remain worried by the compression in refining margins toward more normal levels. Following a prolonged period of high differentials, crack spreads are set to weaken, which will lead to deteriorating near-term earnings and cash flows. Therefore, while being incrementally more positive on TSO, we would advise investors to wait for a better entry point before buying shares in the company.”
A number of other analysts have also recently commented on TSO. Wells Fargo & Co. restated a “hold” rating on shares of Tesoro Corp. in a research report on Saturday, August 6th. JPMorgan Chase & Co. reduced their price target on Tesoro Corp. from $100.00 to $96.00 and set a “neutral” rating for the company in a research report on Friday, June 10th. Goldman Sachs Group Inc. upgraded Tesoro Corp. from a “neutral” rating to a “buy” rating and upped their price target for the stock from $96.00 to $100.00 in a research report on Wednesday, June 29th. Wolfe Research upgraded Tesoro Corp. from a “market perform” rating to an “outperform” rating in a research report on Monday, June 20th. Finally, Howard Weil upgraded Tesoro Corp. from a “sector perform” rating to a “sector outperform” rating and reduced their price target for the stock from $105.00 to $93.00 in a research report on Monday, July 11th. Six investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. Tesoro Corp. currently has an average rating of “Buy” and a consensus price target of $101.13.
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Shares of Tesoro Corp. (NYSE:TSO) opened at 81.79 on Thursday. Tesoro Corp. has a 12 month low of $67.80 and a 12 month high of $119.67. The company has a market cap of $9.77 billion, a P/E ratio of 7.66 and a beta of 2.10. The stock’s 50 day moving average price is $77.24 and its 200-day moving average price is $79.32.
Tesoro Corp. (NYSE:TSO) last posted its quarterly earnings results on Wednesday, August 3rd. The company reported $3.47 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.77 by $1.70. Tesoro Corp. had a return on equity of 20.15% and a net margin of 5.12%. The firm earned $6.29 billion during the quarter, compared to analysts’ expectations of $5.87 billion. During the same quarter in the previous year, the business earned $4.59 earnings per share. The company’s revenue was down 23.7% on a year-over-year basis. Equities research analysts expect that Tesoro Corp. will post $5.46 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 2.69%. This is a positive change from Tesoro Corp.’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Monday, August 29th. Tesoro Corp.’s dividend payout ratio (DPR) is presently 20.72%.
In related news, CFO Steven Sterin acquired 1,100 shares of the stock in a transaction dated Friday, August 26th. The stock was acquired at an average cost of $73.93 per share, with a total value of $81,323.00. Following the purchase, the chief financial officer now directly owns 8,152 shares of the company’s stock, valued at $602,677.36. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.88% of the stock is owned by insiders.
Several large investors have recently modified their holdings of TSO. Acrospire Investment Management LLC acquired a new stake in shares of Tesoro Corp. during the first quarter valued at $103,000. Zions Bancorporation increased its stake in shares of Tesoro Corp. by 2,912.2% in the first quarter. Zions Bancorporation now owns 1,235 shares of the company’s stock valued at $106,000 after buying an additional 1,194 shares during the last quarter. Signaturefd LLC increased its stake in shares of Tesoro Corp. by 1.4% in the second quarter. Signaturefd LLC now owns 1,351 shares of the company’s stock valued at $101,000 after buying an additional 18 shares during the last quarter. Advisor Group Inc. acquired a new stake in shares of Tesoro Corp. during the second quarter valued at $118,000. Finally, Daiwa SB Investments Ltd. increased its stake in shares of Tesoro Corp. by 8.0% in the second quarter. Daiwa SB Investments Ltd. now owns 1,620 shares of the company’s stock valued at $122,000 after buying an additional 120 shares during the last quarter. Hedge funds and other institutional investors own 88.41% of the company’s stock.
Tesoro Corp. Company Profile
Tesoro Corporation (Tesoro) is an independent petroleum refining and marketing company. The Company operates through three business segments: Refining operating segment (Refining), which owns and operates refineries, and refines crude oil and other feedstocks into transportation fuels; TLLP, a publicly traded limited partnership, which includes certain crude oil and natural gas gathering assets, natural gas processing and crude oil and refined products terminaling, and transportation and storage assets, and marketing segment (Marketing), which sells transportation fuels.
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