Genco Shipping & Trading (NYSE:GNK) Shares Gap Down - Here's Why

Key Points

• Shares gapped down — GNK opened at $23.14 versus the prior close of $24.32 and was last trading around $22.82 on relatively light volume.
• Analysts have trimmed ratings recently (multiple downgrades), leaving a MarketBeat average rating of "Moderate Buy" with an average target of $21.00, below the recent price.
• Genco boosted its quarterly dividend to $0.50 (annualized $2.00, ~8.7% yield) even as it reported an EPS and revenue beat but still shows a negative net margin and ROE, and insiders have sold shares recently.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $24.32, but opened at $23.14. Genco Shipping & Trading shares last traded at $22.8220, with a volume of 4,814 shares changing hands.

Wall Street Analyst Weigh In

GNK has been the subject of several research analyst reports. Alliance Global Partners cut shares of Genco Shipping & Trading from a "buy" rating to a "neutral" rating in a research note on Thursday, February 19th. Wall Street Zen cut shares of Genco Shipping & Trading from a "hold" rating to a "sell" rating in a research note on Sunday, December 14th. Zacks Research cut shares of Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 30th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Genco Shipping & Trading in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $21.00.

Genco Shipping & Trading Price Performance

The stock has a market cap of $997.01 million, a P/E ratio of -209.21, a price-to-earnings-growth ratio of 5.57 and a beta of 1.17. The company has a current ratio of 2.39, a quick ratio of 1.84 and a debt-to-equity ratio of 0.21. The company's fifty day simple moving average is $22.46 and its 200-day simple moving average is $19.60.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The shipping company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.04. The firm had revenue of $109.92 million for the quarter, compared to analyst estimates of $78.52 million. Genco Shipping & Trading had a negative net margin of 1.28% and a negative return on equity of 0.12%. The business's revenue for the quarter was up 10.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.29 EPS. As a group, sell-side analysts forecast that Genco Shipping & Trading Limited will post 0.48 EPS for the current year.

Genco Shipping & Trading Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 11th were issued a $0.50 dividend. This is a boost from Genco Shipping & Trading's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Wednesday, March 11th. This represents a $2.00 annualized dividend and a yield of 8.7%. Genco Shipping & Trading's payout ratio is presently -1,818.18%.

Insider Buying and Selling at Genco Shipping & Trading

In other Genco Shipping & Trading news, CAO Joseph Adamo sold 6,340 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $23.67, for a total value of $150,067.80. Following the sale, the chief accounting officer owned 38,519 shares of the company's stock, valued at $911,744.73. The trade was a 14.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jesper Christensen sold 18,450 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $23.66, for a total transaction of $436,527.00. Following the completion of the sale, the insider directly owned 98,299 shares in the company, valued at $2,325,754.34. This trade represents a 15.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 55,824 shares of company stock valued at $1,313,949 in the last 90 days. 2.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Genco Shipping & Trading

Several large investors have recently made changes to their positions in the company. American Century Companies Inc. grew its holdings in shares of Genco Shipping & Trading by 4.0% in the 3rd quarter. American Century Companies Inc. now owns 1,611,227 shares of the shipping company's stock worth $28,680,000 after purchasing an additional 62,030 shares during the last quarter. Townsend & Associates Inc grew its holdings in shares of Genco Shipping & Trading by 0.7% in the 4th quarter. Townsend & Associates Inc now owns 1,276,311 shares of the shipping company's stock worth $25,373,000 after purchasing an additional 8,488 shares during the last quarter. Focus Partners Wealth grew its holdings in shares of Genco Shipping & Trading by 3.1% in the 4th quarter. Focus Partners Wealth now owns 863,101 shares of the shipping company's stock worth $15,385,000 after purchasing an additional 26,326 shares during the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of Genco Shipping & Trading by 14.8% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 748,707 shares of the shipping company's stock worth $13,799,000 after purchasing an additional 96,703 shares during the last quarter. Finally, Millennium Management LLC grew its holdings in shares of Genco Shipping & Trading by 100.3% in the 4th quarter. Millennium Management LLC now owns 543,290 shares of the shipping company's stock worth $10,013,000 after purchasing an additional 272,094 shares during the last quarter. Institutional investors 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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