Genco Shipping & Trading (NYSE:GNK) Trading Down 4.8% - What's Next?

Key Points

• Genco Shipping & Trading shares fell 4.8% to about $26 during mid-day trading, on volume far below the stock’s average. The stock’s consensus rating remains “Hold,” with a $26 price target.
• The company reported stronger-than-expected quarterly results, posting $0.65 in EPS versus a $0.60 estimate and revenue of $136.41 million, up 68.5% year over year.
• Genco increased its quarterly dividend to $0.80 per share, implying a 12.5% annualized yield, though its payout ratio is elevated at 351.65%.

Genco Shipping & Trading Limited (NYSE:GNK - Get Free Report) traded down 4.8% during mid-day trading on Wednesday . The company traded as low as $26.47 and last traded at $26.00. 21,008 shares changed hands during trading, a decline of 95% from the average daily volume of 406,299 shares. The stock had previously closed at $27.32.

Wall Street Analysts Forecast Growth

GNK has been the topic of a number of research analyst reports. Zacks Research cut shares of Genco Shipping & Trading from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $29.00 price target on shares of Genco Shipping & Trading in a research note on Friday, May 8th. B. Riley Financial reaffirmed a "buy" rating on shares of Genco Shipping & Trading in a report on Friday, August 7th. Weiss Ratings upgraded Genco Shipping & Trading from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 19th. Finally, Alliance Global Partners reiterated a "neutral" rating on shares of Genco Shipping & Trading in a research note on Wednesday, June 17th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $26.00.

Genco Shipping & Trading Trading Down 6.2%

The firm has a fifty day moving average of $25.19 and a two-hundred day moving average of $24.03. The company has a market cap of $1.12 billion, a PE ratio of 28.11, a price-to-earnings-growth ratio of 3.11 and a beta of 0.94. The company has a current ratio of 2.97, a quick ratio of 2.41 and a debt-to-equity ratio of 0.36.

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

Genco Shipping & Trading Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Monday, August 17th were paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 12.5%. The ex-dividend date was Monday, August 17th. This is an increase from Genco Shipping & Trading's previous quarterly dividend of $0.35. Genco Shipping & Trading's dividend payout ratio is currently 351.65%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Blue Trust Inc. raised its holdings in Genco Shipping & Trading by 230.1% during the 1st quarter. Blue Trust Inc. now owns 1,347 shares of the shipping company's stock valued at $30,000 after acquiring an additional 939 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Genco Shipping & Trading in the second quarter worth $35,000. Strengthening Families & Communities LLC bought a new position in shares of Genco Shipping & Trading in the fourth quarter worth $31,000. Advisory Services Network LLC purchased a new position in shares of Genco Shipping & Trading in the third quarter valued at $30,000. Finally, Kemnay Advisory Services Inc. purchased a new position in shares of Genco Shipping & Trading in the fourth quarter valued at $32,000. 58.62% of the stock is currently owned by hedge funds and other institutional investors.

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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