TRI Should I Buy
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Thomson Reuters Corp (TRI) is not a strong buy for a beginner investor with a long-term strategy at this moment. The stock is in a pre-market decline (-0.83%), and while there are positive catalysts such as AI advancements and a share repurchase plan, the financial performance shows a significant decline in net income and EPS. Analysts' ratings are mixed, with price targets ranging from $100 to $165, and hedge funds are selling the stock. Given the technical analysis indicating bearish trends and no strong trading signals, it is advisable to hold off on buying this stock for now.
The MACD is positive and expanding (2.439), indicating bullish momentum. However, RSI is neutral (71.992), and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key resistance levels are at R1: 98.591 and R2: 103.906, with support at S1: 81.386 and S2: 76.071. The stock is currently below its pivot level of 89.989, suggesting limited upside potential in the short term.
AI advancements: Positive market sentiment following the Anthropic event and the success of the AI legal assistant CoCounsel with one million users.
Share repurchase plan: Announcement to repurchase up to $600 million of common shares to enhance shareholder value.
Hedge fund selling: Hedge funds have increased selling by 164.85% over the last quarter.
Financial performance: Net income and EPS have dropped significantly (-43.52% and -43.08% YoY, respectively) in Q4
Bearish technical indicators: Moving averages indicate a bearish trend, and the stock is trading below its pivot level.
In Q4 2025, revenue increased by 5.24% YoY to $2.009 billion, but net income dropped by 43.52% YoY to $331 million. EPS also declined by 43.08% YoY to 0.74. Gross margin improved by 18.27% YoY to 100.
Analysts' ratings are mixed: RBC Capital upgraded the stock to Outperform with a $126 price target, while JPMorgan and BofA maintain Neutral ratings with $100 price targets. Canaccord and BMO Capital have higher targets ($131.50 and $165, respectively) and view the stock as a buying opportunity despite recent pullbacks. The AI disruption narrative is a key point of contention among analysts.
