Genco Shipping & Trading (NYSE:GNK) Shares Break Below 50-Day Moving Average - Here's Why

Key Points

• GNK shares fell below their 50-day moving average of $26.59, trading as low as $25.28 and last changing hands near $25.72.
• Analyst opinions remain mixed, with three Buy, two Hold and one Sell rating; the consensus is Hold with an average price target of $29.00.
• Genco reported quarterly EPS of $0.65 and revenue of $136.41 million, beating estimates and increasing revenue 68.5% year over year. The company also raised its quarterly dividend to $0.80, implying a 12.4% annualized yield, though its payout ratio is high at 351.65%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) shares crossed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $26.59 and traded as low as $25.28. Genco Shipping & Trading shares last traded at $25.7180, with a volume of 514,621 shares changing hands.

Analyst Ratings Changes

GNK has been the subject of several recent analyst reports. B. Riley Financial reissued a "buy" rating on shares of Genco Shipping & Trading in a research note on Friday, August 7th. BTIG Research reissued a "neutral" rating on shares of Genco Shipping & Trading in a research report on Friday, September 18th. Weiss Ratings upgraded Genco Shipping & Trading from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, September 29th. Zacks Research downgraded Genco Shipping & Trading from a "hold" rating to a "strong sell" rating in a research report on Monday, October 5th. Finally, Alliance Global Partners reiterated a "neutral" rating on shares of Genco Shipping & Trading in a report on Wednesday, June 17th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $29.00.

Genco Shipping & Trading Stock Performance

The firm has a market cap of $1.12 billion, a price-to-earnings ratio of 28.26, a PEG ratio of 3.11 and a beta of 0.96. The company has a current ratio of 2.97, a quick ratio of 2.41 and a debt-to-equity ratio of 0.36. The firm's fifty day moving average price is $26.59 and its 200-day moving average price is $25.16.

Genco Shipping & Trading (NYSE:GNK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The shipping company reported $0.65 EPS for the quarter, topping analysts' consensus estimates 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 business had revenue of $136.41 million for the quarter, compared to analysts' expectations of $90.59 million. During the same quarter in the previous year, the firm earned ($0.16) earnings per share. The business's revenue was up 68.5% compared to the same quarter last year. Analysts expect that Genco Shipping & Trading Limited will post 2.22 earnings per share for the current year.

Genco Shipping & Trading Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 17th were paid a $0.80 dividend. This is a boost from Genco Shipping & Trading's previous quarterly dividend of $0.35. The ex-dividend date was Monday, August 17th. This represents a $3.20 annualized dividend and a dividend yield of 12.4%. Genco Shipping & Trading's dividend payout ratio (DPR) is 351.65%.

Institutional Trading of Genco Shipping & Trading

Hedge funds have recently modified their holdings of the business. Blue Trust Inc. boosted its position in Genco Shipping & Trading by 230.1% during the first quarter. Blue Trust Inc. now owns 1,347 shares of the shipping company's stock worth $30,000 after acquiring an additional 939 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in Genco Shipping & Trading during the second quarter worth approximately $35,000. Global Trust Asset Management LLC acquired a new position in shares of Genco Shipping & Trading in the 1st quarter valued at $45,000. Fortitude Family Office LLC grew its stake in shares of Genco Shipping & Trading by 697.2% during the 3rd quarter. Fortitude Family Office LLC now owns 2,280 shares of the shipping company's stock valued at $60,000 after buying an additional 1,994 shares during the period. Finally, Summit Securities Group LLC acquired a new stake in shares of Genco Shipping & Trading during the 1st quarter worth $63,000. 58.62% of the stock is owned by institutional investors and hedge funds.

About Genco Shipping & Trading

Genco Shipping & Trading Limited is a drybulk shipping company that owns and operates ocean-going vessels used to transport commodities worldwide. Its fleet serves the global seaborne trade in major and minor drybulk cargoes, including iron ore, coal, grain, steel products and other raw materials.

The company operates vessels across several drybulk segments, including Capesize, Ultramax, Supramax and Handysize ships. Genco provides transportation services to commodity producers, traders and industrial customers, with voyages covering major international trade routes and ports.

Founded in 2004 and headquartered in New York City, Genco became a publicly traded company in 2005.

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