Genco Shipping & Trading (NYSE:GNK) Stock Price Passes Above 50 Day Moving Average - Here's Why

Key Points

• Genco Shipping (NYSE:GNK) shares recently crossed above their 50-day moving average of $22.95, trading as high as $23.72 and last at $23.6450 on Wednesday.
• The company raised its quarterly dividend to $0.50 (annualized $2.00), implying a 8.5% yield, up from the prior $0.15 payment.
• Analysts are mixed — MarketBeat shows a consensus rating of "Moderate Buy" with a consensus price target of $21.00 (below the current price); the latest quarter beat EPS and revenue estimates but the company still reported a negative net margin.

Shares of Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) crossed above its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $22.95 and traded as high as $23.72. Genco Shipping & Trading shares last traded at $23.6450, with a volume of 356,308 shares changing hands.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Zacks Research cut Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a report on Monday, March 30th. Weiss Ratings restated a "hold (c-)" rating on shares of Genco Shipping & Trading in a report on Friday, March 27th. Finally, Alliance Global Partners cut Genco Shipping & Trading from a "buy" rating to a "neutral" rating in a report on Thursday, February 19th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $21.00.

Genco Shipping & Trading Price Performance

The company has a market capitalization of $1.02 billion, a PE ratio of -214.94, a PEG ratio of 5.26 and a beta of 1.17. The firm has a fifty day moving average of $22.95 and a two-hundred day moving average of $19.96. The company has a current ratio of 2.39, a quick ratio of 1.84 and a debt-to-equity ratio of 0.21.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last issued its earnings results 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 during the quarter, compared to analysts' expectations 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 quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.29 EPS. Research analysts anticipate that Genco Shipping & Trading Limited will post 1.14 EPS for the current fiscal 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 given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 8.5%. The ex-dividend date of this dividend was Wednesday, March 11th. This is a positive change from Genco Shipping & Trading's previous quarterly dividend of $0.15. Genco Shipping & Trading's dividend payout ratio is currently -1,818.18%.

Insider Buying and Selling at Genco Shipping & Trading

In other Genco Shipping & Trading 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 transaction 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Joseph Adamo sold 6,340 shares of the company'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 value of $150,067.80. Following the transaction, the chief accounting officer directly 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 disclosure for this sale is available in the SEC filing. Insiders sold 55,824 shares of company stock valued at $1,313,949 in the last 90 days. Insiders own 2.37% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of GNK. Royal Bank of Canada raised its position in Genco Shipping & Trading by 68.2% during the 1st quarter. Royal Bank of Canada now owns 54,287 shares of the shipping company's stock valued at $725,000 after purchasing an additional 22,007 shares during the last quarter. Amundi raised its position in Genco Shipping & Trading by 29.0% during the 1st quarter. Amundi now owns 8,000 shares of the shipping company's stock valued at $101,000 after purchasing an additional 1,800 shares during the last quarter. AQR Capital Management LLC raised its position in Genco Shipping & Trading by 49.3% during the 1st quarter. AQR Capital Management LLC now owns 296,188 shares of the shipping company's stock valued at $3,957,000 after purchasing an additional 97,766 shares during the last quarter. Dynamic Technology Lab Private Ltd raised its position in Genco Shipping & Trading by 59.5% during the 1st quarter. Dynamic Technology Lab Private Ltd now owns 17,848 shares of the shipping company's stock valued at $238,000 after purchasing an additional 6,660 shares during the last quarter. Finally, Cetera Investment Advisers raised its position in Genco Shipping & Trading by 15.7% during the 2nd quarter. Cetera Investment Advisers now owns 19,983 shares of the shipping company's stock valued at $261,000 after purchasing an additional 2,715 shares during the last quarter. Institutional investors own 58.62% of the company's stock.

About Genco Shipping & Trading

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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