Thomson Reuters AI-Powered Surge Lifts Stock 0.88% Despite 372nd-Ranked 320M Trading Volume

Generated by AI AgentAinvest Market Brief
Thursday, Aug 7, 2025 7:10 pm ET1min read
Aime RobotAime Summary

- Thomson Reuters (TRI) rose 0.88% on Aug 7, 2025, with trading volume dropping 57.1% to $320M, ranked 372nd. Analysts gave a 'Moderate Buy' rating with an average target of C$263.80 (5.65% upside).

- Q2 2025 earnings showed 7% organic revenue growth driven by AI tools like CoCounsel Legal and agentic platforms automating tax/legal workflows.

- H1 2025 financials included $843M free cash flow (+4%) and $678M adjusted EBITDA (+5%), with 7–7.5% organic growth guidance reaffirmed.

- A $10B capital allocation plan through 2027 supports acquisitions/shareholder returns, while a top-500 stock strategy yielded 166.71% returns (2022–present), outperforming benchmarks by 137.53%.

Thomson Reuters (TRI) closed on August 7, 2025, with a 0.88% gain, while trading volume dropped 57.1% to $320 million, ranking 372nd in market activity. Analyst ratings for the stock show a "Moderate Buy" consensus based on eight Wall Street analysts, with five recommending a hold, two a buy, and one a strong buy. The average price target stands at C$263.80, implying a 5.65% upside from the current price of C$249.70.

Recent developments highlight the company’s strategic focus on AI-driven product innovation. During its Q2 2025 earnings call,

reported revenue growth aligned with expectations, with organic revenue up 7% year-on-year. Key segments such as Legal, Corporates, and Tax & Accounting demonstrated robust performance, driven by tools like CoCounsel Legal and agentic AI platforms. The firm emphasized leveraging AI to automate complex workflows, including tax preparation and legal research, positioning itself as a leader in professional-grade AI solutions.

Financial metrics reinforce confidence in the company’s stability. Free cash flow for the first half of 2025 reached $843 million, up 4% year-on-year, with adjusted EBITDA increasing 5% to $678 million. Management reaffirmed full-year guidance, including a 7–7.5% organic revenue growth target and a 39% adjusted EBITDA margin. The firm’s capital allocation strategy remains balanced, with $10 billion in capacity through 2027 to fund strategic acquisitions and shareholder returns.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.

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