STNG Scorpio Tankers Inc

Pacer Advisors Inc. significantly reduced its stake in Scorpio Tankers Inc. (NYSE:STNG) by 22% during the third quarter, selling 89,870 shares. Despite this reduction, Scorpio Tankers maintains a "Moderate Buy" consensus from Wall Street analysts with an average target price of $69.20. The company also recently exceeded quarterly EPS expectations and increased its quarterly dividend.

Scorpio Tankers (STNG) recently announced the sale of two mid-life LR2 product tankers and the order of two scrubber-fitted LR2 newbuildings, a move aimed at refreshing its fleet and reshaping capital commitments. This decision aligns with a broader fleet renewal strategy, including similar MR tanker transactions, to keep the fleet younger and more compliant with evolving regulations. The article explores how this strategy impacts Scorpio Tankers' cash generation and long-term investment narrative, especially in light of potential future overcapacity and softening earnings forecasts.

Scorpio Tankers (STNG) announced the sale of two 2016-built LR2 product tankers, "STI Goal" and "STI Gallantry," for $52.3 million each, with sales expected to close in Q1 2026. Concurrently, the company plans to acquire two new scrubber-fitted LR2 newbuilding product tankers for $70.8 million each, slated for delivery in Q3 2027. These strategic decisions aim to modernize Scorpio Tankers' fleet and enhance its competitive standing in the marine transportation sector.

Scorpio Tankers (STNG) has seen a significant multi-year run but has recently cooled off. Despite recent dips, the stock is up 4.1% year-to-date and 442.1% over five years, driven by tanker market tightness and geopolitical tensions. Valuation models, including Discounted Cash Flow and Price to Earnings, suggest the stock is currently undervalued.

Scorpio Tankers Inc. has announced agreements to sell two 2016-built LR2 product tankers, STI Goal and STI Gallantry, for $52.3 million each, with sales expected to close in Q1 2026. Concurrently, the company will purchase two scrubber-fitted LR2 newbuilding product tankers for $70.8 million each, anticipated for delivery in Q3 2027. These transactions are part of Scorpio Tankers' ongoing fleet adjustments, which include other sales and newbuilding acquisitions for various tanker types.

Scorpio Tankers Inc. has announced the sale of two 2016-built LR2 product tankers, STI Goal and STI Gallantry, for $52.3 million each, with sales expected to close in Q1 2026. Simultaneously, the company plans to purchase two new scrubber-fitted LR2 newbuilding product tankers for $70.8 million each, slated for delivery in Q3 2027. These transactions align with Scorpio Tankers' strategy to modernize its fleet by acquiring more environmentally compliant vessels while shedding older assets.