Genco Shipping & Trading (NYSE:GNK) Reaches New 52-Week High - Here's What Happened

Key Points

• Genco Shipping & Trading reached a new 52-week high, trading as high as $27.96 and up 4.3% from its prior close, despite analysts’ consensus price target of $26.00.
• The company reported strong quarterly results, with EPS of $0.65 beating estimates by $0.05 and revenue rising 68.5% year over year to $136.41 million.
• Genco increased its quarterly dividend to $0.80 per share, equivalent to an annualized $3.20 payout and an 11.4% yield, although its payout ratio is elevated at 351.65%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $27.96 and last traded at $27.8510, with a volume of 301826 shares changing hands. The stock had previously closed at $27.00.

Analysts Set New Price Targets

GNK has been the topic of a number of research reports. Alliance Global Partners reissued a "neutral" rating on shares of Genco Shipping & Trading in a report on Wednesday, June 17th. Zacks Research lowered shares of Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 19th. Weiss Ratings raised shares of Genco Shipping & Trading from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, September 2nd. Finally, B. Riley Financial restated a "buy" rating on shares of Genco Shipping & Trading in a report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $26.00.

Genco Shipping & Trading Trading Up 4.3%

The company has a debt-to-equity ratio of 0.36, a current ratio of 2.97 and a quick ratio of 2.41. The firm has a market cap of $1.23 billion, a price-to-earnings ratio of 30.93, a price-to-earnings-growth ratio of 3.10 and a beta of 0.93. The firm's fifty day moving average is $25.90 and its 200-day moving average is $24.46.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The shipping company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.60 by $0.05. Genco Shipping & Trading had a return on equity of 6.46% and a net margin of 9.15%.The company had revenue of $136.41 million for the quarter, compared to analyst estimates of $90.59 million. During the same quarter in the prior year, the company earned ($0.16) EPS. The firm's revenue for the quarter was up 68.5% compared to the same quarter last year. Equities analysts anticipate that Genco Shipping & Trading Limited will post 2.25 earnings per share for the current year.

Genco Shipping & Trading Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Monday, August 17th were issued a $0.80 dividend. The ex-dividend date was Monday, August 17th. This is a positive change from Genco Shipping & Trading's previous quarterly dividend of $0.35. This represents a $3.20 dividend on an annualized basis and a yield of 11.4%. Genco Shipping & Trading's dividend payout ratio is 351.65%.

Institutional Trading of Genco Shipping & Trading

Several large investors have recently made changes to their positions in the company. Blue Trust Inc. increased its stake in Genco Shipping & Trading by 230.1% in the 1st quarter. Blue Trust Inc. now owns 1,347 shares of the shipping company's stock valued at $30,000 after buying an additional 939 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of Genco Shipping & Trading during the 2nd quarter worth $35,000. Global Trust Asset Management LLC bought a new position in Genco Shipping & Trading during the first quarter worth about $45,000. Summit Securities Group LLC purchased a new position in shares of Genco Shipping & Trading in the first quarter worth about $63,000. Finally, Y Intercept Hong Kong Ltd bought a new stake in shares of Genco Shipping & Trading in the first quarter valued at approximately $234,000. 58.62% of the stock is currently owned by institutional investors and hedge funds.

Genco Shipping & Trading Company Profile

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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