Genco Shipping & Trading (NYSE:GNK) Shares Gap Down After Insider Selling

Key Points

• Genco Shipping & Trading's shares gapped down to $17.44 after insider Jesper Christensen sold 34,202 shares at an average price of $18.06, significantly reducing his stake by 33.02%.
• Analysts have mixed ratings on the company, with a consensus rating of "Buy" and an average price target of $18.00, despite a recent downgrade to "sell" by Wall Street Zen.
• The company reported a quarterly loss of ($0.14) EPS, slightly better than analyst expectations, but with a 24.4% decline in revenue compared to the previous year.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $17.98, but opened at $17.44. Genco Shipping & Trading shares last traded at $17.36, with a volume of 63,604 shares.

Specifically, insider Jesper Christensen sold 34,202 shares of the company's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $18.06, for a total value of $617,688.12. Following the sale, the insider owned 69,363 shares in the company, valued at $1,252,695.78. This represents a 33.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Analysts Set New Price Targets

Several brokerages have commented on GNK. Wall Street Zen cut shares of Genco Shipping & Trading from a "hold" rating to a "sell" rating in a research note on Wednesday, May 21st. Jefferies Financial Group restated a "buy" rating and set a $19.00 target price on shares of Genco Shipping & Trading in a research report on Thursday, August 7th. Two research 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 company's stock. According to MarketBeat, Genco Shipping & Trading currently has an average rating of "Buy" and a consensus target price of $18.00.

Genco Shipping & Trading Trading Down 0.2%

The company has a 50 day moving average of $16.34 and a 200 day moving average of $14.40. 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 stock has a market capitalization of $781.36 million, a price-to-earnings ratio of 53.51 and a beta of 1.22.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The shipping company reported ($0.14) earnings per share for the quarter, topping the consensus estimate of ($0.15) by $0.01. The firm had revenue of $46.90 million for the quarter, compared to the consensus estimate of $50.19 million. Genco Shipping & Trading had a net margin of 4.40% and a return on equity of 1.40%. The company's revenue for the quarter was down 24.4% on a year-over-year basis. During the same period last year, the firm posted $0.46 earnings per share. On average, research analysts predict that Genco Shipping & Trading Limited will post 0.48 EPS for the current fiscal year.

Genco Shipping & Trading Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 25th. Shareholders of record on Monday, August 18th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 3.3%. The ex-dividend date was Monday, August 18th. Genco Shipping & Trading's dividend payout ratio is presently 176.47%.

Institutional Trading of Genco Shipping & Trading

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. grew its holdings in shares of Genco Shipping & Trading by 82.2% in the second quarter. PNC Financial Services Group Inc. now owns 1,942 shares of the shipping company's stock valued at $25,000 after purchasing an additional 876 shares during the period. Signaturefd LLC grew its stake in shares of Genco Shipping & Trading by 239.0% in 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 period. Summit Securities Group LLC acquired a new stake in shares of Genco Shipping & Trading during the 1st quarter worth approximately $39,000. Farther Finance Advisors LLC raised its position in shares of 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 period. Finally, GAMMA Investing LLC lifted its holdings in Genco Shipping & Trading by 1,119.1% in the first quarter. GAMMA Investing LLC now owns 4,462 shares of the shipping company's stock valued at $60,000 after acquiring an additional 4,096 shares during the last quarter. 58.62% of the stock is owned by institutional investors and hedge funds.

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.