Genco Shipping & Trading Limited (NYSE:GNK) Declares Dividend Increase - $1.05 Per Share

Key Points

• Genco Shipping & Trading raised its quarterly dividend 31.2% to $1.05 per share, equivalent to $4.20 annualized and a reported 17.0% yield. The dividend is payable November 23 to shareholders of record November 16.
• The dividend may be difficult to sustain from earnings: the payout ratio is reported at 264.5%, and analysts’ earnings forecasts imply the company would not cover its dividend with earnings alone.
• Quarterly revenue rose 90% year over year to $151.85 million, but EPS of $0.88 narrowly missed estimates. Analysts’ average rating is Hold, with an average price target of $29.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Stockholders of record on Monday, November 16th will be paid a dividend of $1.05 per share by the shipping company on Monday, November 23rd. This represents a $4.20 dividend on an annualized basis and a dividend yield of 17.0%. The ex-dividend date of this dividend is Monday, November 16th. This is a 31.2% increase from Genco Shipping & Trading's previous quarterly dividend of $0.80.

Genco Shipping & Trading has raised its dividend payment by an average of 0.3% annually over the last three years. Genco Shipping & Trading has a payout ratio of 264.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Genco Shipping & Trading to earn $1.19 per share next year, which means the company may not be able to cover its $3.20 annual dividend with an expected future payout ratio of 268.9%.

Genco Shipping & Trading Price Performance

Shares of NYSE:GNK opened at $24.72 on Thursday. The company has a market cap of $1.08 billion, a P/E ratio of 27.17, a P/E/G ratio of 2.90 and a beta of 1.08. The business has a fifty day simple moving average of $26.35 and a 200-day simple moving average of $24.38. Genco Shipping & Trading has a 52 week low of $15.58 and a 52 week high of $28.42. The company has a quick ratio of 2.41, a current ratio of 2.97 and a debt-to-equity ratio of 0.36.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last released its earnings results on Wednesday, November 4th. The shipping company reported $0.88 earnings per share for the quarter, missing the consensus estimate of $0.89 by ($0.01). Genco Shipping & Trading had a return on equity of 6.46% and a net margin of 9.15%. The business had revenue of $151.85 million for the quarter, compared to analysts' expectations of $105.04 million. During the same quarter last year, the company posted ($0.01) earnings per share. The business's quarterly revenue was up 90.0% compared to the same quarter last year. Equities research analysts forecast that Genco Shipping & Trading will post 2.22 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on GNK. BTIG Research dropped coverage on shares of Genco Shipping & Trading in a research note on Friday, September 18th. They set a "neutral" rating for the company. B. Riley Financial reiterated a "buy" rating on shares of Genco Shipping & Trading in a report on Friday, August 7th. Zacks Research cut shares of Genco Shipping & Trading from a "hold" rating to a "strong sell" rating in a research report on Monday, October 5th. Finally, Weiss Ratings downgraded shares of Genco Shipping & Trading from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, October 26th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $29.00.

About Genco Shipping & Trading

Genco Shipping & Trading Limited NYSE: GNK is a drybulk shipping company that owns and operates a fleet of oceangoing vessels. The company transports essential commodities, including iron ore, grain, coal and other major and minor bulk cargoes, for customers around the world.

Genco's fleet includes large Capesize vessels as well as Ultramax, Supramax and Handysize ships. These vessels serve different segments of the drybulk market and support the movement of raw materials used in energy production, agriculture, construction and industrial manufacturing.

Founded in 1997 and headquartered in New York, Genco serves international trade routes across major global commodity markets.

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