Genco Shipping & Trading (NYSE:GNK) Shares Pass Above 50 Day Moving Average - Should You Sell?

Key Points

• GNK shares moved above their 50-day moving average, trading as high as $24.69 and last changing hands at $24.44. The stock’s 50-day average is $23.44, suggesting recent short-term momentum.
• Genco posted stronger-than-expected quarterly results, with earnings of $0.26 per share versus the $0.07 estimate and revenue of $114.43 million versus $65.73 million expected. Revenue rose 60.6% year over year.
• The company maintained a mixed outlook with a consensus analyst rating of “Hold” and a $23.67 price target, while also offering a $0.35 quarterly dividend. However, the dividend payout ratio is very high at 526.32%, and insiders have recently sold shares.

Shares of Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) passed above its 50 day moving average during trading on Monday . The stock has a 50 day moving average of $23.44 and traded as high as $24.69. Genco Shipping & Trading shares last traded at $24.44, with a volume of 341,461 shares trading hands.

Analysts Set New Price Targets

Several analysts have weighed in on GNK shares. Weiss Ratings upgraded Genco Shipping & Trading from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, May 8th. Zacks Research downgraded Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $29.00 price objective on shares of Genco Shipping & Trading in a research report on Friday, May 8th. Finally, Alliance Global Partners downgraded Genco Shipping & Trading from a "buy" rating to a "neutral" rating in a research report on Thursday, February 19th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Genco Shipping & Trading has a consensus rating of "Hold" and a consensus price target of $23.67.

Genco Shipping & Trading Stock Performance

The company has a market capitalization of $1.07 billion, a PE ratio of 64.32, a PEG ratio of 3.55 and a beta of 0.97. The company has a 50 day moving average of $23.44 and a two-hundred day moving average of $20.96. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.98 and a quick ratio of 2.41.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The shipping company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.19. The company had revenue of $114.43 million for the quarter, compared to analysts' expectations of $65.73 million. Genco Shipping & Trading had a return on equity of 2.49% and a net margin of 4.38%.The firm's revenue for the quarter was up 60.6% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.28) earnings per share. As a group, equities research analysts predict that Genco Shipping & Trading Limited will post 1.81 earnings per share for the current year.

Genco Shipping & Trading Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Monday, May 18th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 5.7%. The ex-dividend date of this dividend is Monday, May 18th. Genco Shipping & Trading's dividend payout ratio is presently 526.32%.

Insider Buying and Selling

In related news, CFO Peter George Allen sold 13,315 shares of the company's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $23.66, for a total value of $315,032.90. Following the sale, the chief financial officer directly owned 66,702 shares of the company's stock, valued at $1,578,169.32. This represents a 16.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Joseph Adamo sold 6,340 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $23.67, for a total value of $150,067.80. Following the completion of the sale, the chief accounting officer directly owned 38,519 shares in the company, valued at approximately $911,744.73. This represents a 14.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 55,824 shares of company stock valued at $1,313,949 over the last ninety days. Company insiders own 2.08% of the company's stock.

Hedge Funds Weigh In On Genco Shipping & Trading

Several institutional investors and hedge funds have recently modified their holdings of GNK. Millennium Management LLC increased its holdings in shares of Genco Shipping & Trading by 100.3% during the fourth quarter. Millennium Management LLC now owns 543,290 shares of the shipping company's stock valued at $10,013,000 after acquiring an additional 272,094 shares in the last quarter. SG Americas Securities LLC increased its holdings in shares of Genco Shipping & Trading by 364.8% during the first quarter. SG Americas Securities LLC now owns 307,663 shares of the shipping company's stock valued at $6,938,000 after acquiring an additional 241,471 shares in the last quarter. Citigroup Inc. increased its holdings in shares of Genco Shipping & Trading by 727.6% during the third quarter. Citigroup Inc. now owns 215,412 shares of the shipping company's stock valued at $3,834,000 after acquiring an additional 189,383 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of Genco Shipping & Trading by 705.9% during the third quarter. First Trust Advisors LP now owns 133,631 shares of the shipping company's stock valued at $2,379,000 after acquiring an additional 117,049 shares in the last quarter. Finally, Hsbc Holdings PLC bought a new position in shares of Genco Shipping & Trading during the first quarter valued at $2,552,000. 58.62% of the stock is currently owned by institutional investors.

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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