Genco Shipping & Trading Limited (NYSE:GNK) Shares Shorted: Short Interest Up 46.4% in September

Key Points

• Short interest rose sharply: Genco Shipping & Trading’s short interest increased 46.4% to 1.50 million shares as of September 15, representing 3.5% of shares outstanding and 1.9 days to cover.
• Analyst sentiment is cautious: The stock has a consensus “Hold” rating from analysts, with two Buy ratings and four Hold ratings, and a consensus price target of $29.
• Strong operating results and higher dividend: Genco beat quarterly earnings and revenue estimates, with revenue up 68.5% year over year. It raised its quarterly dividend to $0.80, implying a $3.20 annual payout and an 11.8% yield, though the payout ratio is elevated at 351.65%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) was the target of a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 1,496,591 shares, an increase of 46.4% from the August 31st total of 1,022,340 shares. Currently, 3.5% of the shares of the stock are sold short. Based on an average trading volume of 795,852 shares, the days-to-cover ratio is currently 1.9 days.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. BTIG Research restated a "neutral" rating on shares of Genco Shipping & Trading in a research note on Friday, September 18th. B. Riley Financial reissued a "buy" rating on shares of Genco Shipping & Trading in a report on Friday, August 7th. Zacks Research downgraded Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 19th. Alliance Global Partners reaffirmed a "neutral" rating on shares of Genco Shipping & Trading in a research note on Wednesday, June 17th. Finally, Weiss Ratings cut Genco Shipping & Trading from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 16th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $29.00.

Institutional Trading of Genco Shipping & Trading

Several large investors have recently made changes to their positions in GNK. XY Capital Ltd acquired a new position in Genco Shipping & Trading during the 4th quarter worth about $425,000. Hsbc Holdings PLC acquired a new stake in Genco Shipping & Trading in the 1st quarter valued at about $2,552,000. Arrowstreet Capital Limited Partnership increased its position in Genco Shipping & Trading by 56.0% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 286,568 shares of the shipping company's stock valued at $6,462,000 after acquiring an additional 102,868 shares in the last quarter. Quantinno Capital Management LP raised its stake in shares of Genco Shipping & Trading by 104.8% in the first quarter. Quantinno Capital Management LP now owns 56,860 shares of the shipping company's stock worth $1,282,000 after acquiring an additional 29,098 shares during the last quarter. Finally, Counterpoint Mutual Funds LLC acquired a new position in shares of Genco Shipping & Trading during the first quarter worth approximately $560,000. Institutional investors own 58.62% of the company's stock.

Genco Shipping & Trading Price Performance

Genco Shipping & Trading stock traded up $1.06 during trading hours on Thursday, hitting $27.22. 463,248 shares of the stock were exchanged, compared to its average volume of 613,463. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.41 and a current ratio of 2.97. The stock has a market capitalization of $1.19 billion, a P/E ratio of 20.28, a P/E/G ratio of 3.06 and a beta of 0.96. Genco Shipping & Trading has a 12 month low of $15.55 and a 12 month high of $28.42. The business's 50-day moving average is $26.37 and its two-hundred day moving average is $24.86.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The shipping company reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. The company had revenue of $136.41 million during the quarter, compared to analysts' expectations of $90.59 million. Genco Shipping & Trading had a net margin of 9.15% and a return on equity of 6.46%. Genco Shipping & Trading's quarterly revenue was up 68.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.16) earnings per share. Equities research analysts expect that Genco Shipping & Trading will post 2.22 EPS for the current fiscal year.

Genco Shipping & Trading Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 17th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 11.8%. The ex-dividend date was Monday, August 17th. This is a positive change from Genco Shipping & Trading's previous quarterly dividend of $0.35. Genco Shipping & Trading's dividend payout ratio is presently 351.65%.

About Genco Shipping & Trading

Genco Shipping & Trading Limited NYSE: GNK is a global drybulk shipping company that owns and operates vessels used to transport essential commodities. Its cargoes include iron ore, coal, grain and other raw materials that support industrial and agricultural supply chains.

The company operates a diversified fleet of large Capesize vessels and smaller Ultramax and Supramax vessels. This range of ship sizes enables Genco to serve different cargo requirements and trade routes across major international markets, including the Atlantic and Pacific basins.

Founded in 1997 and headquartered in New York City, Genco manages its fleet through a combination of in-house commercial and technical capabilities.

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