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How to Buy Scorpio Tankers Inc. (STNG) Shares - Investment in Scorpio Tankers Inc. (STNG) Stock

25 August 2025
6 min to read
How to buy Scorpio Tankers Inc. (STNG) shares – Investment in Scorpio Tankers Inc. (STNG) stock

Thinking about investing in the shipping industry's rising star? Scorpio Tankers Inc. (STNG) offers a unique opportunity to ride the waves of global energy transportation. With one of the world's youngest and most efficient tanker fleets, this company combines traditional shipping with modern environmental technology. Let's navigate through everything you need to know about making this investment.

📈 Current Market Position and Entry Point

As of August 25, 2025, Scorpio Tankers (STNG) is trading at $48.97 per share. This represents an interesting entry point considering the company’s strong fundamentals and recent performance trends.

Mark your calendar: November 4, 2025 is the next critical date when Scorpio Tankers releases its Q3 2025 earnings. Historically, these reports have significantly moved the stock price, making this a key event for both current shareholders and potential investors.

Earnings Impact Analysis

Looking at recent earnings patterns, Scorpio Tankers has demonstrated consistent positive surprises:

  • July 30, 2025 (Q2 Earnings): Reported EPS of $1.41 vs. $1.03 consensus estimate – a massive 37% beat that drove immediate price appreciation
  • Previous quarters: Consistent dividend declarations of $0.40 per share showing management’s confidence in cash flow stability
  • Revenue performance: While Q2 2025 revenue of $222.76 million showed a 39.5% YoY decline, the company still exceeded analyst expectations on profitability metrics

The pattern suggests that Scorpio Tankers often outperforms expectations, particularly on earnings per share, which typically creates positive momentum around earnings announcements.

📊 Six-Month Performance Journey

Over the past six months (February-August 2025), STNG has delivered impressive returns:

+17.6% performance compared to SPY’s +13.4% over the last three months alone. This outperformance tells a compelling story of recovery and strength in the tanker market.

The technical picture supports this bullish narrative:

  • Current price ($48.97) trading above both 50-day SMA ($44.19) and 200-day SMA ($44.33)
  • RSI at 39.26 indicates room for upward movement without being overbought
  • 60% “green days” in the last month shows consistent buying interest

This recovery is particularly noteworthy given that the stock had underperformed the broader market by -33.9% over the previous year, suggesting we’re witnessing a significant turnaround story.

🔮 Price Forecast: 2025-2030 Outlook

Based on comprehensive analyst consensus and market projections:

  • 2025 Year-End: $60-70 range (20-30% upside from current levels)
    Most analysts converge around this range, with Marketbeat showing a $60.50 average target and Stockscan.io projecting $77.76
  • 2026 Projection: $65-85 range
    Continued recovery in shipping rates and fleet optimization should drive further appreciation
  • 2028 Outlook: $90-110 range
    Long-term industry fundamentals and potential consolidation benefits
  • 2030 Vision: $100-130 range
    Some analysts project $112.79 as a realistic target given industry growth trends
  • Verdict: STRONG BUY – The combination of attractive valuation (PE of 6.65), strong cash flow generation, and positive industry tailwinds creates a compelling investment case.

⚠️ Risk Assessment: Navigating Choppy Waters

Every investment carries risks, and STNG is no exception:

Market Volatility Risks

  • Shipping rates are highly cyclical and dependent on global oil demand
  • Geopolitical events can immediately impact transportation routes and costs
  • Currency fluctuations affect international operations (68% revenue overseas)

Industry-Specific Challenges

  • Environmental regulations requiring continued fleet upgrades
  • Competition from newer, more efficient vessels entering the market
  • Potential oversupply if too many new tankers are ordered industry-wide

Company-Specific Considerations

  • Debt levels despite recent reductions (~$2.2B reduction since 2021)
  • Concentration risk in product tanker segment
  • Management execution risk in volatile markets

🟢 Positive Signals: Why 2025 Looks Promising

Several factors suggest strong potential for price appreciation:

Operational Excellence

  • Modern, fuel-efficient fleet with average age of 8.7 years
  • 85% of tonnage equipped with exhaust gas capture systems (scrubbers)
  • No newbuildings on order = minimal capital expenditure requirements

Financial Strength

  • Recent $500 million revolving credit facility secured (Company Website)
  • Consistent dividend payments ($0.40 quarterly) demonstrating cash flow stability
  • Aggressive share buyback program ($826M since January 2023)

Industry Tailwinds

  • Global refined product demand recovery post-pandemic
  • Strategic positioning benefiting from changed trade patterns
  • Aging global fleet creating supply constraints

🎯 Beginner Trader Action Plan

What to do today as a new investor:

  1. Start small – Begin with a position size that represents no more than 5% of your total portfolio
  2. Dollar-cost average – Consider building your position gradually rather than going all-in at once
  3. Set price alerts – Monitor for opportunities around the November 4th earnings date
  4. Diversify appropriately – STNG should be part of a balanced portfolio, not the entire strategy

Humorous trader wisdom: “Investing in tanker stocks is like ocean sailing – sometimes you catch favorable winds, sometimes you weather storms. The key is having a sturdy vessel (strong company) and not abandoning ship during temporary squalls!”

✅ Step-by-Step: How to Buy Scorpio Tankers Inc. (STNG) Shares

Step Action Why It Matters
1 Choose a trading platform Ensure it offers NYSE access (where STNG trades)
2 Complete account verification Modern platforms offer quick KYC processes
3 Deposit funds Start with an amount you’re comfortable risking
4 Search for “STNG” Use the ticker symbol for accurate results
5 Select order type Limit orders help control entry price
6 Review order details Check commissions and fees before confirming
7 Execute purchase Your order is now live in the market
8 Set up monitoring Establish price alerts for your position
9 Plan exit strategy Determine profit targets and stop-loss levels
10 Document transaction Keep records for tax and performance tracking

💡 Why Pocket Option Stands Out for New Investors

For those beginning their investment journey, Pocket Option offers several advantages that make accessing stocks like STNG more accessible:

Minimum Investment Flexibility

With a minimum deposit of just $5, you can start building positions in quality companies without significant capital commitment. This allows for practical learning while managing risk effectively.

Streamlined Verification Process

The 1-minute KYC process using any single document means you can go from registration to trading faster than traditional brokers typically allow.

Diverse Withdrawal Options

Over 100 withdrawal methods including cryptocurrencies, e-wallets, and traditional banking options provide flexibility in managing your investment returns.

This combination of low barriers to entry and user-friendly features makes Pocket Option particularly suitable for investors looking to build positions in companies like Scorpio Tankers gradually.

🌊 Scorpio Tankers in 2025: Shipping’s Efficiency Leader

Scorpio Tankers operates as the world’s largest product tanker owner, specializing in transporting refined petroleum products globally. With 99 fuel-efficient vessels and a market capitalization of approximately $2.5 billion, the company has positioned itself at the forefront of modern shipping technology.

The company’s strategy focuses on three pillars: reducing leverage, maintaining liquidity, and returning capital to shareholders. This disciplined approach has resulted in significant debt reduction ($2.2B since 2021) while simultaneously repurchasing $826 million in shares and paying $182 million in dividends since January 2023.

Interesting Fact for 2025: Scorpio Tankers has equipped over 85% of its fleet with exhaust gas capture systems (scrubbers), allowing them to use cheaper fuel while meeting environmental regulations. This technological advantage provides them with approximately $10,000 per day in cost savings per vessel compared to non-equipped competitors – a massive operational edge in a competitive industry.

FAQ

What makes Scorpio Tankers different from other shipping companies?

STNG operates one of the youngest and most technologically advanced fleets globally, with over 85% of vessels equipped with environmental technology that provides significant cost advantages. Their focus on product tankers (rather than crude) also positions them well in current market conditions.

How often does Scorpio Tankers pay dividends?

The company pays quarterly dividends, recently declaring $0.40 per share. Their consistent dividend history demonstrates strong cash flow generation capabilities.

What are the main risks specific to tanker stocks?

Key risks include shipping rate volatility, geopolitical events affecting trade routes, environmental regulation changes, and global oil demand fluctuations. However, STNG's modern fleet helps mitigate some of these risks.

How can I track Scorpio Tankers' performance?

Monitor quarterly earnings reports (next one November 4, 2025), shipping rate indices, and global oil demand trends. The company also provides regular investor updates on their website.

Is now a good time to invest in shipping stocks?

Current market conditions appear favorable due to constrained global fleet supply, aging competitor vessels, and recovering demand patterns. However, always consider your individual risk tolerance and investment horizon.

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