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.”
Several other brokerages have also commented on TSO. Piper Jaffray Cos. lifted their price target on shares of Tesoro Corp. from $82.00 to $92.00 and gave the stock an overweight rating in a research note on Friday, September 16th. JPMorgan Chase & Co. cut their price target on shares of Tesoro Corp. from $100.00 to $96.00 and set a neutral rating on the stock in a research note on Friday, June 10th. Cowen and Company reiterated a buy rating on shares of Tesoro Corp. in a research note on Wednesday, June 1st. Mizuho lifted their price target on shares of Tesoro Corp. from $67.00 to $94.00 and gave the stock a buy rating in a research note on Tuesday, July 5th. Finally, Citigroup Inc. upgraded shares of Tesoro Corp. from a neutral rating to a buy rating and dropped their price objective for the company from $92.50 to $92.00 in a research note on Tuesday, July 19th. Six equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average target price of $101.13.
Shares of Tesoro Corp. (NYSE:TSO) traded up 1.21% on Thursday, reaching $83.95. 264,005 shares of the company were exchanged. The stock has a 50 day moving average of $77.41 and a 200-day moving average of $79.35. The company has a market capitalization of $10.03 billion, a P/E ratio of 7.86 and a beta of 2.10. Tesoro Corp. has a 52-week low of $67.80 and a 52-week high of $119.67.
Tesoro Corp. (NYSE:TSO) last announced its quarterly earnings results on Wednesday, August 3rd. The company reported $3.47 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.77 by $1.70. Tesoro Corp. had a net margin of 5.12% and a return on equity of 20.15%. The firm had revenue of $6.29 billion for the quarter, compared to analyst estimates of $5.87 billion. During the same period last year, the business earned $4.59 EPS. Tesoro Corp.’s revenue for the quarter was down 23.7% compared to the same quarter last year. On average, analysts predict that Tesoro Corp. will post $5.50 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Wednesday, August 31st were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 2.65%. The ex-dividend date of this dividend was Monday, August 29th. This is an increase from Tesoro Corp.’s previous quarterly dividend of $0.50. Tesoro Corp.’s dividend payout ratio is 20.72%.
In other Tesoro Corp. news, CFO Steven Sterin purchased 1,100 shares of Tesoro Corp. stock in a transaction on Friday, August 26th. The shares were bought at an average price of $73.93 per share, with a total value of $81,323.00. Following the completion of the acquisition, 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 available through this link. 0.88% of the stock is currently owned by company insiders.
Hedge funds have recently made changes to their positions in the stock. Prudential Financial Inc. increased its stake in shares of Tesoro Corp. by 51.3% in the first quarter. Prudential Financial Inc. now owns 920,393 shares of the company’s stock valued at $79,162,000 after buying an additional 312,080 shares during the period. Ngam Advisors L.P. increased its stake in shares of Tesoro Corp. by 53.7% in the first quarter. Ngam Advisors L.P. now owns 19,558 shares of the company’s stock valued at $1,682,000 after buying an additional 6,837 shares during the period. Los Angeles Capital Management & Equity Research Inc. increased its stake in shares of Tesoro Corp. by 7.0% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 551,561 shares of the company’s stock valued at $47,440,000 after buying an additional 36,013 shares during the period. Pacad Investment Ltd. increased its stake in shares of Tesoro Corp. by 161.8% in the first quarter. Pacad Investment Ltd. now owns 67,500 shares of the company’s stock valued at $5,806,000 after buying an additional 41,716 shares during the period. Finally, Bowling Portfolio Management LLC increased its stake in shares of Tesoro Corp. by 63.6% in the first quarter. Bowling Portfolio Management LLC now owns 55,386 shares of the company’s stock valued at $4,764,000 after buying an additional 21,540 shares during the period. 88.41% of the stock is currently owned by institutional investors.
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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