Genco Shipping & Trading (NYSE:GNK) Sets New 52-Week High - Here's What Happened

Key Points

• Genco Shipping & Trading recently achieved a new 52-week high, reaching $19.57, indicating positive market activity with a trading volume of 26,564 shares.
• Analysts maintain a consensus rating of "Buy" for Genco Shipping & Trading, with a current average target price of $18.00 despite a recent quarterly earnings report showing a net revenue decline of 24.4% year-over-year.
• The company's dividend was recently cut, with a payout ratio of 176.47%, highlighting potential financial strain as the company navigates significant revenue challenges.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $19.55 and last traded at $19.57, with a volume of 26564 shares trading hands. The stock had previously closed at $19.26.

Analysts Set New Price Targets

Separately, Jefferies Financial Group reaffirmed a "buy" rating and set a $19.00 price objective on shares of Genco Shipping & Trading in a research note on Thursday, August 7th. Two analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $18.00.

Genco Shipping & Trading Stock Performance

The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.20 and a current ratio of 1.63. The business has a 50-day moving average price of $16.84 and a 200 day moving average price of $14.59. The stock has a market capitalization of $830.63 million, a P/E ratio of 56.88 and a beta of 1.22.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The shipping company reported ($0.14) EPS for the quarter, topping analysts' consensus estimates of ($0.15) by $0.01. Genco Shipping & Trading had a return on equity of 1.40% and a net margin of 4.40%.The firm had revenue of $46.90 million for the quarter, compared to analysts' expectations of $50.19 million. During the same period in the previous year, the firm posted $0.46 EPS. The business's revenue for the quarter was down 24.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Genco Shipping & Trading Limited will post 0.48 EPS for the current fiscal year.

Genco Shipping & Trading Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 25th. Investors of record on Monday, August 18th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Monday, August 18th. Genco Shipping & Trading's payout ratio is presently 176.47%.

Insiders Place Their Bets

In related news, insider Jesper Christensen sold 34,202 shares of the business's stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $18.06, for a total value of $617,688.12. Following the completion of the transaction, the insider directly owned 69,363 shares in the company, valued at $1,252,695.78. The trade was a 33.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Genco Shipping & Trading

A number of hedge funds have recently added to or reduced their stakes in GNK. PNC Financial Services Group Inc. raised its stake in Genco Shipping & Trading by 82.2% during the 2nd quarter. PNC Financial Services Group Inc. now owns 1,942 shares of the shipping company's stock valued at $25,000 after buying an additional 876 shares during the last quarter. Signaturefd LLC raised its stake in Genco Shipping & Trading by 239.0% during the 2nd quarter. Signaturefd LLC now owns 2,549 shares of the shipping company's stock valued at $33,000 after buying an additional 1,797 shares during the last quarter. Summit Securities Group LLC purchased a new stake in Genco Shipping & Trading during the 1st quarter valued at $39,000. Farther Finance Advisors LLC raised its stake in Genco Shipping & Trading by 303.3% during the 2nd quarter. Farther Finance Advisors LLC now owns 3,275 shares of the shipping company's stock valued at $43,000 after buying an additional 2,463 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in Genco Shipping & Trading by 1,119.1% during the 1st quarter. GAMMA Investing LLC now owns 4,462 shares of the shipping company's stock valued at $60,000 after buying an additional 4,096 shares during the last quarter. 58.62% of the stock is currently owned by hedge funds and other institutional investors.

About Genco Shipping & Trading

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, bauxite, steel products, and other drybulk cargoes. It operates through the Major Bulk and Minor Bulk segments. The Major Bulk segment focuses on Capesize vessels. The Minor Bulk segment consists of Ultramax and Supramax vessels.

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