Torm Plc (NASDAQ:TRMD) to Issue Quarterly Dividend of $1.35

Key Points

• Torm declared a quarterly dividend of $1.35 per share, payable December 2 to shareholders of record November 17. The $5.40 annualized payout implies a 14.3% yield but is 43.7% lower than the prior quarterly dividend.
• The dividend payout ratio is 269.2%, meaning earnings alone do not cover the current payment and Torm is relying on its balance sheet.
• Torm reported quarterly EPS of $1.91 and revenue of $499.4 million, beating analyst estimates for both. Analysts’ consensus rating is “Buy,” with a $38 price target.

Torm Plc (NASDAQ:TRMD - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Shareholders of record on Tuesday, November 17th will be given a dividend of $1.35 per share on Wednesday, December 2nd. This represents a $5.40 annualized dividend and a yield of 14.3%. The ex-dividend date of this dividend is Tuesday, November 17th. This is a 43.7% decrease from Torm's previous quarterly dividend of $2.40.

Torm has increased its dividend payment by an average of 0.1% annually over the last three years. Torm has a dividend payout ratio of 269.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Torm Trading Down 6.5%

NASDAQ:TRMD traded down $2.62 during midday trading on Wednesday, hitting $37.64. The stock had a trading volume of 2,450,098 shares, compared to its average volume of 1,036,543. The company has a quick ratio of 1.97, a current ratio of 2.27 and a debt-to-equity ratio of 0.33. The stock has a 50-day moving average of $37.21 and a 200 day moving average of $30.75. The company has a market capitalization of $3.84 billion, a price-to-earnings ratio of 6.20 and a beta of 0.05. Torm has a one year low of $19.30 and a one year high of $43.31.

Torm (NASDAQ:TRMD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported $1.91 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.36. Torm had a net margin of 35.51% and a return on equity of 27.24%. The business had revenue of $499.40 million for the quarter, compared to the consensus estimate of $330.95 million.

Analyst Upgrades and Downgrades

A number of research firms recently commented on TRMD. Evercore reissued an "outperform" rating on shares of Torm in a research report on Tuesday, October 27th. Weiss Ratings upgraded Torm from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 9th. Finally, Wall Street Zen raised Torm from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 19th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $38.00.

Torm Company Profile

TORM plc is a maritime transportation company that owns and operates a fleet of product tankers. The company primarily transports refined petroleum products, including gasoline, diesel, jet fuel and naphtha, connecting refineries, storage facilities and distribution markets around the world.

TORM's fleet serves the global clean-product tanker market and includes vessels in several size categories, such as long-range and medium-range tankers. Its vessels operate on international trade routes, supporting the movement of energy products between major production and consumption regions.

Founded in Denmark in 1889, TORM has grown into an international shipping company headquartered in Copenhagen.

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