Thomson Reuters Boosts Buyback and Earnings Beat as Stock Gains 1.17% with $0.23 Billion Volume Ranking 428th

Thomson Reuters (TRI) rose 1.17% on August 19, 2025, with a trading volume of $0.23 billion, ranking 428th among stocks. The company announced a $1 billion share buyback plan, approved by the Toronto Stock Exchange, allowing repurchase of up to 2.2% of outstanding shares over the next year. This follows a Q2 earnings beat, where adjusted earnings per share reached 87 cents, exceeding expectations, alongside 7% organic growth. The move underscores a capital strategy balancing growth and shareholder returns, leveraging the firm’s subscription-based model and predictable cash flows.

Analysts highlighted Thomson Reuters’ resilience in AI-driven innovation, with 22% of Q2 contract value attributed to generative AI tools like CoCounsel Legal and Tax. CIBC upgraded the stock to “Outperformer,” citing strong growth and a $10 billion acquisition pipeline. While 11 analysts project a 20.32% upside (average target: $206.14), risks include margin pressures from AI investments and macroeconomic volatility. The stock’s 13% post-earnings selloff created a 15% discount to its 52-week high, offering potential entry points for long-term investors.

Valuation remains a key consideration. With a P/E ratio of 43.81 and a 1.4% yield, the stock trades at a premium relative to industry peers. However, its AI monetization, recurring revenue streams, and disciplined capital allocation—evidenced by $1 billion in debt repayments in Q2—support a growth-focused outlook. Short-term margin concerns and interest rate uncertainties warrant caution, but the company’s strategic positioning in mission-critical software and data services reinforces its appeal.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 1-day return of 0.98% and a total return of 31.52% over 365 days. This suggests the approach captured short-term momentum but also reflected market volatility and timing risks.