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

Key Points

• Genco stock crossed above its 50-day moving average (50-day = $21.73), trading as high as $23.03 and last at $22.73, indicating a short-term technical uptick.
• The company beat quarterly estimates (EPS $0.39 vs. $0.35; revenue $109.9M vs. $78.5M) and boosted its quarterly dividend to $0.50 (annualized $2.00, ~8.8% yield), though margins and ROE remain negative.
• Analyst views are mixed but the MarketBeat consensus is an average "Buy" rating with a $21 price target, while notable insider selling (55,824 shares over three months) has reduced insider ownership to 2.37%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report)'s share price crossed above its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of $21.73 and traded as high as $23.03. Genco Shipping & Trading shares last traded at $22.7270, with a volume of 218,409 shares traded.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on GNK shares. Zacks Research raised Genco Shipping & Trading from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 17th. Wall Street Zen downgraded Genco Shipping & Trading from a "hold" rating to a "sell" rating in a research note on Sunday, December 14th. Weiss Ratings reissued a "hold (c-)" rating on shares of Genco Shipping & Trading in a report on Monday, December 29th. Finally, Alliance Global Partners downgraded shares of Genco Shipping & Trading from a "buy" rating to a "neutral" rating in a research note on Thursday, February 19th. Three equities research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $21.00.

Genco Shipping & Trading Stock Down 1.2%

The firm's fifty day moving average price is $21.73 and its 200-day moving average price is $19.22. The company has a market capitalization of $984.53 million, a price-to-earnings ratio of -206.59, a P/E/G ratio of 5.27 and a beta of 1.14. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.39 and a quick ratio of 1.84.

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

Genco Shipping & Trading Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 11th were given a $0.50 dividend. This is a boost from Genco Shipping & Trading's previous quarterly dividend of $0.15. This represents a $2.00 annualized dividend and a yield of 8.8%. The ex-dividend date was Wednesday, March 11th. Genco Shipping & Trading's dividend payout ratio is -1,818.18%.

Insider Activity

In other news, CFO Peter George Allen sold 13,315 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Joseph Adamo sold 6,340 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $23.67, for a total transaction of $150,067.80. Following the completion of the transaction, the chief accounting officer owned 38,519 shares of the company's stock, valued at approximately $911,744.73. This trade represents a 14.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 55,824 shares of company stock valued at $1,313,949. 2.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Genco Shipping & Trading

Institutional investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. raised its stake in shares of Genco Shipping & Trading by 82.2% during the second quarter. PNC Financial Services Group Inc. now owns 1,942 shares of the shipping company's stock valued at $25,000 after acquiring an additional 876 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in shares of Genco Shipping & Trading during the third quarter worth $30,000. Advisory Services Network LLC bought a new stake in shares of Genco Shipping & Trading in the third quarter worth $30,000. Strengthening Families & Communities LLC bought a new stake in shares of Genco Shipping & Trading in the fourth quarter worth $31,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in Genco Shipping & Trading in the fourth quarter valued at $32,000. 58.62% of the stock is 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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