Genco Shipping & Trading Limited (NYSE:GNK) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate Genco Shipping & Trading a “Moderate Buy,” with three buy ratings and two holds; the average 12-month price target is $26.00.
• Genco exceeded quarterly expectations, reporting $0.65 EPS versus $0.60 expected and $136.41 million in revenue, up 68.5% year over year.
• The company raised its quarterly dividend to $0.80 per share, implying an annualized yield of about 11.8%, although its reported payout ratio is high at 351.65%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) has earned an average recommendation of "Moderate Buy" from the five ratings firms that are covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $26.00.

Several research analysts recently weighed in on the stock. Alliance Global Partners reaffirmed a "neutral" rating on shares of Genco Shipping & Trading in a report on Wednesday, June 17th. Weiss Ratings upgraded Genco Shipping & Trading from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, September 2nd. B. Riley Financial reaffirmed a "buy" rating on shares of Genco Shipping & Trading in a research note on Friday, August 7th. Finally, Zacks Research cut Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 19th.

Hedge Funds Weigh In On Genco Shipping & Trading

Hedge funds have recently modified their holdings of the stock. Blue Trust Inc. grew its stake in Genco Shipping & Trading by 230.1% during the first quarter. Blue Trust Inc. now owns 1,347 shares of the shipping company's stock valued at $30,000 after acquiring an additional 939 shares in the last quarter. Advisory Services Network LLC purchased a new stake in Genco Shipping & Trading in the 3rd quarter worth $30,000. Kemnay Advisory Services Inc. bought a new position in shares of Genco Shipping & Trading during the 4th quarter valued at about $32,000. Public Employees Retirement System of Ohio bought a new position in shares of Genco Shipping & Trading during the 2nd quarter valued at about $35,000. Finally, Sunbelt Securities Inc. purchased a new position in shares of Genco Shipping & Trading during the third quarter valued at about $35,000. Hedge funds and other institutional investors own 58.62% of the company's stock.

Genco Shipping & Trading Price Performance

Shares of NYSE:GNK opened at $27.16 on Thursday. The company has a market capitalization of $1.18 billion, a P/E ratio of 29.85, a P/E/G ratio of 3.10 and a beta of 0.93. Genco Shipping & Trading has a 1-year low of $15.55 and a 1-year high of $27.82. The firm's 50 day simple moving average is $25.77 and its two-hundred day simple moving average is $24.39. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.97 and a quick ratio of 2.41.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The shipping company reported $0.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.05. The firm had revenue of $136.41 million during the quarter, compared to analysts' expectations of $90.59 million. Genco Shipping & Trading had a net margin of 9.15% and a return on equity of 6.46%. The company's revenue for the quarter was up 68.5% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.16) earnings per share. Research analysts expect that Genco Shipping & Trading will post 2.25 EPS for the current fiscal year.

Genco Shipping & Trading Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 17th were issued a dividend of $0.80 per share. This is an increase from Genco Shipping & Trading's previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Monday, August 17th. This represents a $3.20 dividend on an annualized basis and a yield of 11.8%. Genco Shipping & Trading's payout ratio is 351.65%.

Genco Shipping & Trading Company Profile

Genco Shipping & Trading Limited is a leading global owner and operator of drybulk vessels, providing seaborne transportation services for major commodities such as iron ore, coal, grain and fertilizers. The company's fleet comprises Capesize, Panamax and Supramax vessels, which are chartered to a broad base of international charterers under both spot and period contracts. Genco's focus on modern, fuel-efficient tonnage supports reliable cargo delivery across a variety of trade routes and market conditions.

In addition to vessel ownership and operation, Genco offers ship management, maintenance and technical support services designed to maximize fleet performance and safety.

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