Wall Street Zen Downgrades Torm (NASDAQ:TRMD) to Buy

Key Points

• Wall Street Zen downgraded Torm from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with a $38.00 target price.
• Torm shares opened at $35.18 after rising 2.9%, near their 52-week high of $35.53. The company has a $3.59 billion market capitalization and a low price-to-earnings ratio of 5.80.
• Torm reported quarterly revenue of $662.8 million, well above estimates, but earnings per share of $3.25 narrowly missed the $3.31 consensus. Institutional investors and hedge funds own 73.89% of the stock.

Torm (NASDAQ:TRMD - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Sunday, Wall Street Zen reports.

A number of other research analysts also recently commented on the company. Weiss Ratings raised Torm from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, August 28th. Evercore reiterated an "outperform" rating and set a $38.00 price objective on shares of Torm in a research note on Wednesday, August 26th. Finally, Pareto Securities lowered shares of Torm from a "hold" rating to a "hold" rating in a report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $38.00.

Torm Stock Up 2.9%

NASDAQ TRMD opened at $35.18 on Friday. The company has a current ratio of 2.27, a quick ratio of 1.97 and a debt-to-equity ratio of 0.33. The company has a market cap of $3.59 billion, a price-to-earnings ratio of 5.80 and a beta of 0.12. The company has a 50 day moving average of $29.93 and a 200-day moving average of $29.54. Torm has a 1-year low of $19.30 and a 1-year high of $35.53.

Torm (NASDAQ:TRMD - Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The company reported $3.25 earnings per share for the quarter, missing the consensus estimate of $3.31 by ($0.06). The company had revenue of $662.80 million during the quarter, compared to analyst estimates of $499.01 million. Torm had a net margin of 35.51% and a return on equity of 27.24%.

Hedge Funds Weigh In On Torm

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Torm by 0.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,064,258 shares of the company's stock worth $86,032,000 after purchasing an additional 21,280 shares during the period. Vanguard Group Inc. increased its holdings in Torm by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 2,341,185 shares of the company's stock valued at $46,629,000 after purchasing an additional 11,457 shares during the period. Norges Bank acquired a new stake in Torm in the fourth quarter valued at $24,830,000. Renaissance Technologies LLC raised its position in Torm by 25.8% during the 4th quarter. Renaissance Technologies LLC now owns 536,425 shares of the company's stock worth $10,503,000 after purchasing an additional 110,000 shares during the last quarter. Finally, Brevan Howard Capital Management LP bought a new position in Torm during the 2nd quarter worth $7,523,000. 73.89% of the stock is currently owned by institutional investors and hedge funds.

About Torm

Torm A/S NASDAQ: TRMD is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm's core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world.

The company's fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia.

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