Time to Sell Tesoro Corporation After Today’s Option Traders Bearish Bets?

 Time to Sell Tesoro Corporation After Today's Option Traders Bearish Bets?

In today’s session Tesoro Corporation (TSO) recorded an unusually high (208) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious TSO decrease. With 208 contracts traded and 10234 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: TSO161021P00070000 closed last at: $0.13 or 35% down. About 587,138 shares traded hands. Tesoro Corporation (NYSE:TSO) has declined 4.16% since March 3, 2016 and is downtrending. It has underperformed by 12.51% the S&P500.

Analysts await Tesoro Corporation (NYSE:TSO) to report earnings on October, 26. They expect $1.68 earnings per share, down 74.07% or $4.80 from last year’s $6.48 per share. TSO’s profit will be $204.98 million for 12.26 P/E if the $1.68 EPS becomes a reality. After $3.47 actual earnings per share reported by Tesoro Corporation for the previous quarter, Wall Street now forecasts -51.59% negative EPS growth.

Tesoro Corporation (NYSE:TSO) Ratings Coverage

Out of 13 analysts covering Tesoro Corporation (NYSE:TSO), 10 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 77% are positive. Tesoro Corporation has been the topic of 30 analyst reports since July 24, 2015 according to StockzIntelligence Inc. Oppenheimer maintained it with “Outperform” rating and $130.0 target price in Monday, November 23 report. Barclays Capital maintained the shares of TSO in a report on Monday, November 2 with “Overweight” rating. The firm has “Overweight” rating by Bank of America given on Wednesday, February 3. Jefferies initiated Tesoro Corporation (NYSE:TSO) on Tuesday, August 23 with “Buy” rating. Cowen & Co maintained the shares of TSO in a report on Thursday, August 6 with “Outperform” rating. The stock of Tesoro Corporation (NYSE:TSO) earned “Sector Perform” rating by RBC Capital Markets on Wednesday, February 3. UBS initiated Tesoro Corporation (NYSE:TSO) on Thursday, May 19 with “Buy” rating. On Friday, July 24 the stock rating was initiated by Macquarie Research with “Outperform”. The company was maintained on Thursday, December 10 by RBC Capital Markets. The firm has “Buy” rating by Goldman Sachs given on Wednesday, June 29.

According to Zacks Investment Research, “Tesoro was founded in 1968 as a company primarily engaged in petroleum exploration and production. In 1969, Tesoro began operating Alaska’s first refinery near Kenai. Today, Tesoro is a FORTUNE 500 company and one of the largest independent petroleum refiners and marketers in the Western United States.”

Insitutional Activity: The institutional sentiment is 0.86 in Q2 2016. Its the same as in 2016Q1. The ratio has no change, as 68 funds sold all Tesoro Corporation shares owned while 169 reduced positions. only 46 funds bought stakes while 158 increased positions. They now own 103.81 million shares or 6.40% less from 110.92 million shares in 2016Q1.
Moreover, Bnp Paribas Arbitrage has 0.05% invested in Tesoro Corporation (NYSE:TSO) for 137,138 shares. State Street has 8.92 million shares for 0.07% of their US portfolio. The New York-based Cornerstone Cap Holding Limited Com has invested 0.17% in Tesoro Corporation (NYSE:TSO). Old Mutual Customised Solutions (Proprietary) owns 4,900 shares or 0.09% of their US portfolio. Tci Wealth Advsr Incorporated, a Arizona-based fund reported 2,018 shares. Retirement Of Alabama accumulated 61,167 shares or 0.03% of the stock. Mount Lucas Mgmt Ltd Partnership has 1.85% invested in the company for 145,373 shares. Moreover, Bowling Port Ltd Liability Corporation has 0.86% invested in Tesoro Corporation (NYSE:TSO) for 70,232 shares. Diam Commerce Limited holds 63,776 shares or 0.07% of its portfolio. Engineers Gate Manager Limited Partnership holds 0.07% of its portfolio in Tesoro Corporation (NYSE:TSO) for 12,800 shares. Shell Asset Mgmt has invested 0.05% of its portfolio in Tesoro Corporation (NYSE:TSO). Citadel Advsr Ltd Com accumulated 22,832 shares or 0% of the stock. South Texas Money Mgmt Ltd has 0.02% invested in the company for 4,819 shares. Proshare Advsrs Ltd Co holds 34,528 shares or 0.03% of its portfolio. Schwab Charles Invest Mngmt has invested 0.05% of its portfolio in Tesoro Corporation (NYSE:TSO).

Insider Transactions: Since May 9, 2016, the stock had 4 insider purchases, and 2 insider sales for $11,317 net activity. Sterin Steven bought 1,100 shares worth $81,325. $112,905 worth of shares were bought by GALANTE EDWARD G on Monday, May 9. Schofield Daryl R also sold $212,800 worth of Tesoro Corporation (NYSE:TSO) on Monday, May 23. GOLDMAN ROBERT W also sold $201,753 worth of Tesoro Corporation (NYSE:TSO) on Monday, May 9. The insider LILLEY DAVID bought 1,000 shares worth $77,870.

Tesoro Corporation is an independent petroleum refining and marketing company. The company has a market cap of $10.05 billion. The Firm operates through three business divisions: 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 natural gas and crude oil 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. It has a 7.83 P/E ratio. The Company’s Refining segment owns and operates approximately six petroleum refineries with a combined crude oil capacity of over 850 thousand barrels per day (Mbpd).

TSO Company Profile

Tesoro Corporation (Tesoro), incorporated on December 26, 1968, is an independent petroleum refining and marketing company. The Firm operates through three business divisions: 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 natural gas and crude oil 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. The Company’s Refining segment owns and operates approximately six petroleum refineries with a combined crude oil capacity of over 850 thousand barrels per day (Mbpd). TLLP’s business operates in three divisions: Gathering, Processing, and Terminalling and Transportation. The Marketing segment sells transportation fuels in approximately 20 states through a network of approximately 2,270 retail stations.

Another recent and important Tesoro Corporation (NYSE:TSO) news was published by Finance.Yahoo.com which published an article titled: “Tesoro Corporation Sells Remaining Alaska Storage and Terminalling Assets to …” on September 16, 2016.

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