Genco Shipping & Trading (NYSE:GNK) Hits New 12-Month High - Time to Buy?

Key Points

• Genco Shipping & Trading shares reached a new 52-week high of $27.80 and recently traded near $27.76, above the consensus analyst target of $26.00. Analysts’ overall view is “Moderate Buy,” with three Buy ratings and two Holds.
• The company reported strong quarterly results, with earnings of $0.65 per share versus the $0.60 estimate and revenue of $136.41 million, up 68.5% year over year.
• Genco increased its quarterly dividend to $0.80, implying an annualized payout of $3.20 and an 11.6% yield. However, the dividend payout ratio is high at 351.65%, which may raise sustainability concerns.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report)'s share price hit a new 52-week high during trading on Friday . The stock traded as high as $27.80 and last traded at $27.7550, with a volume of 30097 shares trading hands. The stock had previously closed at $27.29.

Analyst Ratings Changes

GNK has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $29.00 price objective on shares of Genco Shipping & Trading in a research report on Friday, May 8th. Alliance Global Partners reaffirmed a "neutral" rating on shares of Genco Shipping & Trading in a research report on Wednesday, June 17th. Weiss Ratings raised shares of Genco Shipping & Trading from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday. B. Riley Financial reiterated a "buy" rating on shares of Genco Shipping & Trading in a research report on Friday, August 7th. Finally, Zacks Research downgraded shares of Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 19th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $26.00.

Genco Shipping & Trading Stock Up 1.0%

The business has a 50 day simple moving average of $25.53 and a 200 day simple moving average of $24.27. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of 30.21, a PEG ratio of 3.12 and a beta of 0.93. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.97 and a quick ratio of 2.41.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The shipping company reported $0.65 earnings per share for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. The business had revenue of $136.41 million during the quarter, compared to analysts' expectations of $90.59 million. Genco Shipping & Trading had a return on equity of 6.46% and a net margin of 9.15%.The company's revenue was up 68.5% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.16) earnings per share. As a group, equities analysts predict that Genco Shipping & Trading Limited will post 2.25 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 Monday, August 24th. Shareholders of record on Monday, August 17th were given a $0.80 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $3.20 annualized dividend and a yield of 11.6%. This is an increase from Genco Shipping & Trading's previous quarterly dividend of $0.35. Genco Shipping & Trading's dividend payout ratio is presently 351.65%.

Institutional Trading of Genco Shipping & Trading

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada boosted its stake in shares of Genco Shipping & Trading by 68.2% in the first 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 period. Amundi increased its stake in Genco Shipping & Trading by 29.0% during the 1st quarter. Amundi now owns 8,000 shares of the shipping company's stock worth $101,000 after buying an additional 1,800 shares during the period. AQR Capital Management LLC lifted its holdings 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 worth $3,957,000 after buying an additional 97,766 shares in the last quarter. Dynamic Technology Lab Private Ltd lifted its holdings 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 worth $238,000 after buying an additional 6,660 shares in the last quarter. Finally, Cetera Investment Advisers boosted its position in Genco Shipping & Trading by 15.7% in the 2nd quarter. Cetera Investment Advisers now owns 19,983 shares of the shipping company's stock valued at $261,000 after buying an additional 2,715 shares during the period. 58.62% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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