Tronox stock hits 52-week low at $7.7 amid market challenges

Tronox Limited (NYSE:TROX), a global mining and inorganic chemicals company, has seen its stock price touch a 52-week low, dipping to $7.7. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a substantial 1-year decline of 46.9%. Despite the challenging market conditions, the company maintains a notable 6.55% dividend yield and has consistently paid dividends for 14 consecutive years, according to InvestingPro data. Investors have been cautious as the company grapples with market headwinds, including fluctuating commodity prices and supply chain disruptions. While the stock currently trades near its 52-week low of $7.72, analysts maintain a consensus target range of $9-15, suggesting potential upside. The company’s financial health score is rated as "FAIR" by InvestingPro, which offers 12 additional investment insights and a comprehensive Pro Research Report for deeper analysis of TROX’s prospects.

In other recent news, TRONOX has reported a 37% year-over-year increase in adjusted EBITDA for the fourth quarter of 2024, reaching $129 million. This performance was in line with Morgan Stanley (NYSE:MS) USA’s estimate and slightly exceeded the consensus, bolstered by stronger-than-expected results in the zircon market. However, TRONOX’s EBITDA guidance for the first quarter of 2025, projected between $525 million and $625 million, fell short of previous estimates by Morgan Stanley and Bloomberg’s surveyed analysts. In response, Mizuho (NYSE:MFG) Securities adjusted its outlook on TRONOX, reducing the price target to $11 while maintaining a Neutral rating, reflecting a cautious stance on the stock’s prospects.

Meanwhile, Truist Securities initiated coverage on TRONOX with a Buy rating and a price target of $17. The firm emphasized TRONOX’s robust competitive position in the titanium dioxide industry, supported by its scale and vertical integration. Truist Securities expressed optimism about the improving fundamentals of the TiO2 market and the potential impact of anti-dumping duties on Chinese exports, which could enhance TRONOX’s market position. The firm anticipates that these factors will lead to above-market volume growth and significant earnings upside for TRONOX. These developments highlight the varied perspectives on TRONOX’s future performance amid evolving market conditions.

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