Genco Shipping & Trading Limited (NYSE:GNK) Increases Dividend to $0.80 Per Share

Key Points

• Genco Shipping & Trading raised its quarterly dividend 128.6% to $0.80 per share, payable August 24 to shareholders of record August 17. The dividend implies a 12.5% annualized yield, though the current payout ratio is 115.7% of earnings.
• The company reported quarterly EPS of $0.65, exceeding analysts’ $0.60 estimate, while revenue increased 68.5% year over year to $136.41 million. Analysts expect full-year EPS of approximately $2.12.
• GNK shares opened at $25.61, near their 12-month high of $27.25, while institutional investors and hedge funds own 58.62% of the company.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) declared a quarterly dividend on Wednesday, August 5th. Shareholders of record on Monday, August 17th will be given a dividend of 0.80 per share by the shipping company on Monday, August 24th. This represents a c) annualized dividend and a yield of 12.5%. The ex-dividend date is Monday, August 17th. This is a 128.6% increase from Genco Shipping & Trading's previous quarterly dividend of $0.35.

Genco Shipping & Trading has increased its dividend by an average of 0.3%per year over the last three years. Genco Shipping & Trading has a dividend payout ratio of 115.7% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Genco Shipping & Trading to earn $1.46 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 95.9%.

Genco Shipping & Trading Stock Down 1.4%

GNK stock opened at $25.61 on Thursday. Genco Shipping & Trading has a 12-month low of $15.55 and a 12-month high of $27.25. The company has a quick ratio of 2.41, a current ratio of 2.98 and a debt-to-equity ratio of 0.36. The company has a market cap of $1.12 billion, a price-to-earnings ratio of 67.39, a PEG ratio of 3.18 and a beta of 0.94. The company has a 50 day moving average of $24.65 and a two-hundred day moving average of $23.47.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The shipping company reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. Genco Shipping & Trading had a net margin of 4.38% and a return on equity of 2.49%. The company had revenue of $136.41 million during the quarter, compared to analyst estimates of $90.59 million. During the same quarter last year, the business posted ($0.16) EPS. The company's revenue for the quarter was up 68.5% on a year-over-year basis. On average, equities analysts anticipate that Genco Shipping & Trading will post 2.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GNK. Royal Bank of Canada raised its stake in shares of Genco Shipping & Trading by 68.2% in the 1st quarter. Royal Bank of Canada now owns 54,287 shares of the shipping company's stock valued at $725,000 after acquiring an additional 22,007 shares in the last quarter. Amundi lifted its holdings in Genco Shipping & Trading by 29.0% in the 1st quarter. Amundi now owns 8,000 shares of the shipping company's stock worth $101,000 after purchasing an additional 1,800 shares during the last quarter. AQR Capital Management LLC boosted its position in Genco Shipping & Trading by 49.3% during the first quarter. AQR Capital Management LLC now owns 296,188 shares of the shipping company's stock worth $3,957,000 after purchasing an additional 97,766 shares during the period. Dynamic Technology Lab Private Ltd boosted its position in Genco Shipping & Trading by 59.5% during the first quarter. Dynamic Technology Lab Private Ltd now owns 17,848 shares of the shipping company's stock worth $238,000 after purchasing an additional 6,660 shares during the period. Finally, Cetera Investment Advisers grew its holdings in Genco Shipping & Trading by 15.7% during the second quarter. Cetera Investment Advisers now owns 19,983 shares of the shipping company's stock valued at $261,000 after purchasing an additional 2,715 shares during the last quarter. Institutional investors and hedge funds own 58.62% of the company's stock.

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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