Thomson Reuters (NASDAQ:TRI) Stock Falls 8.3% After Earnings Miss

Shares of Thomson Reuters Corp (NASDAQ:TRI) were down 8.3% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $107.35 and last traded at $112.1360. 341,309 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 2,136,876 shares. The stock had previously closed at $122.24.

The company reported $0.81 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.82 by ($0.01). Thomson Reuters had a return on equity of 15.82% and a net margin of 21.22%. During the same quarter last year, the firm posted $0.85 EPS. Thomson Reuters’s revenue was up 2.9% on a year-over-year basis.

Analyst Ratings Changes

TRI has been the subject of several research reports. Weiss Ratings upgraded Thomson Reuters from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 15th. Royal Bank Of Canada increased their target price on Thomson Reuters from $124.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday, October 28th. TD Securities reissued a “buy” rating on shares of Thomson Reuters in a research report on Thursday, August 6th. Jefferies Financial Group assumed coverage on Thomson Reuters in a report on Tuesday, October 20th. They issued a “buy” rating and a $130.00 price target for the company. Finally, Canaccord Genuity Group cut their price target on Thomson Reuters from $132.50 to $129.50 and set a “buy” rating for the company in a report on Thursday, October 22nd. Twelve investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $127.99.

Institutional Investors Weigh In On Thomson Reuters

Hedge funds have recently modified their holdings of the company. Bank of America Corp DE boosted its position in Thomson Reuters by 48.7% during the first quarter. Bank of America Corp DE now owns 1,627,069 shares of the company’s stock worth $146,404,000 after acquiring an additional 532,803 shares during the last quarter. TD Waterhouse Canada Inc. grew its stake in Thomson Reuters by 13.2% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,468,484 shares of the company’s stock worth $143,304,000 after acquiring an additional 171,375 shares during the period. First Trust Advisors LP grew its stake in Thomson Reuters by 33.3% in the 1st quarter. First Trust Advisors LP now owns 1,588,756 shares of the company’s stock worth $142,956,000 after acquiring an additional 397,150 shares during the period. The Manufacturers Life Insurance Company raised its holdings in Thomson Reuters by 65.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,500,365 shares of the company’s stock valued at $135,297,000 after acquiring an additional 591,642 shares during the last quarter. Finally, Canada Pension Plan Investment Board acquired a new position in Thomson Reuters in the 2nd quarter valued at $107,223,000. 17.31% of the stock is owned by institutional investors and hedge funds.

Thomson Reuters Trading Down 7.4%

The company has a market cap of $49.08 billion, a PE ratio of 30.22, a price-to-earnings-growth ratio of 2.23 and a beta of 0.75. The business has a 50 day simple moving average of $105.15 and a two-hundred day simple moving average of $97.33. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.12.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information, software and technology solutions for professionals and institutions. The company serves customers in the legal, tax, accounting, audit, corporate, government, risk and compliance sectors, as well as the media industry. Its offerings combine authoritative content with workflow tools, data analytics and artificial intelligence.

Key products and services include Westlaw and Practical Law for legal research and practice management; Checkpoint and ONESOURCE for tax and accounting professionals; Confirmation for audit-related workflows; and CoCounsel, an AI-assisted legal technology platform.